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Posted by Chrissy Hammond on Tue, Mar 17, 2020 @ 05:39 PM

US_Congress_02The Trump administration today announced an extension to the April 15 tax payment deadline for all individual and corporate taxpayers. There is some uncertainty whether the extension applies only to individuals with tax liabilities of $1 million or less, and corporations with tax liabilities of $10 million or less, or if the extension applies to the first $1 million and $10 million of taxes owed, respectively. The unprecedented move comes pursuant to the President’s national emergency declaration on March 13 related to the novel coronavirus outbreak (the COVID-19 virus). The tax relief postpones the tax payment deadlines until July 15, 2020; however, taxpayers apparently must continue to file returns or request extensions by the April 15 tax filing deadline.

The tax payment relief applies automatically. As Treasury Secretary Steven Mnuchin explained during the announcement, “All you have to do is file your taxes, [and] you’ll automatically not get charged interest and penalties.” As a result, individuals and corporations will have until July 15, 2020, to pay taxes (up to the specified limits) that were originally due during this period, generally without penalty. However, individual and corporate taxpayers “should continue to file their taxes by April 15 as normal,” according to an interpretation posted on a House of Representatives Ways and Means Committee blogsite. Therefore, in order to obtain the tax payment extension, it appears that individual and corporate taxpayers must file their tax returns or request extensions by April 15.

Additional information is expected from the Internal Revenue Service that may clarify these initial details. For instance, the liability for quarterly estimated income tax payments due on April 15 and June 15 was not specifically mentioned in today’s announcement. The Internal Revenue Service established a dedicated webpage to provide information for COVID-19 tax relief; hopefully, clarification of the new rules will be posted soon.

Regardless of this tax relief, we want to assure you that your CBIZ team remains dedicated to providing you with the superior level of service you have come to expect from us, including keeping you informed of late-breaking developments. As always, we are committed to preparing and filing your tax returns in a manner that is both timely and responsive to your needs or concerns.

Should you have any questions concerning these tax filing and payment relief measures, please do not hesitate to contact us.

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Copyright © 2020 CBIZ & MHM (Mayer Hoffman McCann P.C.). All rights reserved. CBIZ and MHM are separate and independent legal entities that work together to serve clients. CBIZ is a leading provider of tax and consulting services. MHM is an independent CPA firm providing audit and other attest services. This article is protected by U.S. and international copyright laws and treaties. Use of the material contained herein without the express written consent of the firms is prohibited by law. Material contained in this alert is informational and promotional in nature and not intended to be specific financial, tax or consulting advice. Readers are advised to seek professional consultation regarding circumstances affecting their business.

Tags: tax update, Donald Trump, COVID19, tax extension, tax season, Coronavirus

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