Treasury has released insight on the deferral of the payment of any tax due on April 15, 2020. The due date for making Federal income (and individual SE Tax Payments) due April 15, 2020 will be postponed to July 15, 2020. C Corporations and consolidated groups can defer up to $10,000,000 in tax. For all other taxpayers the deferral is up to $1,000,000. This is also good for estimated tax payments due April 15, 2020.
Yesterday afternoon the United States Treasury issued Notice 2020-17 Relief for Taxpayers Affected by Ongoing Disease 2019 Pandemic. Notice 2020-17 provides some payment relief to US taxpayers. This notice provides insight on the deferral of the payment of any tax due on April 15, 2020. The due date for making Federal income (and individual SE Tax Payments) due April 15, 2020 will be postponed to July 15, 2020. C Corporations and consolidated groups can defer up to $10,000,000 in tax. For all other taxpayers (i.e. individuals, trusts, etc.) the deferral is up to $1,000,000. This is also good for estimated tax payments due April 15, 2020. This is a deferral of time to pay, NOT and extension of time to file. All taxpayers will have to file or extend their returns as normal.
While we know many of you may want to push back the payment of taxes until July 15, you may prefer to complete at least a draft of your return so you know what liability lies ahead. Your DRDA team will continue to work towards the completion, or extension, of your tax return as if this change had not been made. Many of you will want to “get the tax filing process off your plate” and complete the process as usual and file and pay what is due by April 15. The financial impact of filing and paying by April 15 is generally minimal as the funds for the tax payment are likely already sitting in cash and will earn very little, given today’s interest rate environment, between April 15 and July 15. We also know some of you will not want to send a payment until absolutely the latest date possible. In these cases, we will finalize and then extend the return so that that payment can be made in July. Our goal is to provide flexibility and service to you while managing our workflow in the most normalized manner possible. The growing fear is the bubble of work that may be looming in June and July if everyone delays the preparation of their returns. As such we encourage you to get your information to us if you have not already done so. We definitely live in interesting times and want to serve you well as we work through all of this.
