On March 20th, Secretary-Treasurer Steven Mnuchin announced that the April 15 tax filing deadline will be postponed to July 15 to better align with the IRS 90-day deferment of the tax payment deadline. State tax jurisdictions are playing catch up to the announcement, but early indications are many will be setting their own deadline rather than aligning with the federal deadline.
The Treasury Department and the IRS have announced special payment relief in response to the COVID-19 pandemic. This information is contained in Notices 2020-17 and 2020-18. Key details are as follows:
- Tax payment deadlines postponed 90 days. All taxpayers and businesses will have this additional time to make payments without interest or penalties.
- The income tax payment deadline for individual returns is automatically extended until July 15, 2020, Unlike earlier guidance, there is no longer a limit on the tax deferral amount.
- Payment relief applies to all individual returns —including self-employed individuals and other entities (e.g., trusts or estates) as well as C corporations.
- Tax payment relief also includes estimated tax payments for 2020 that are normally due April 15.
- Not all states have followed the federal government. Here are some state listings. See specific State for more information regarding state extensions:
- Virginia will allow all individuals and businesses to delay their 2019 income taxes by 30 days, bumping the deadline to pay from May 1 to June 1. The state will not follow the federal government’s 90-day delay, as top state officials argue that doing so would expose the state to a budget shortfall.
- Maryland’s deadline has been extended to July 15, 2020.
- California pushed back the Golden State’s tax deadline by 60 days.
- Illinois, Ohio, West Virginia and District of Columbia have not provided any guidance as of this publication.
MillerMusmar CPAs highly encourage all of our clients to not delay delivery of their tax data, especially if they have been economically impacted by the current crisis and may want us to help them seek financial relief, request loans or government assistance.
Please be advised that, based on current IRS rules and standards, the advice contained herein is not intended or written by the practitioner to be used and cannot be used by the taxpayer for the purpose of avoiding penalties.
MillerMusmar CPAs is an established accounting firm with offices in Reston, Virginia and Manassas, Virginia. We have a twenty-five-year history of providing top quality auditing, tax, and accounting services to clients throughout the Washington Metropolitan area and internationally. By combining the expertise of a mid-sized firm with the personal attention, we are both large and small enough to deliver a responsive service to our clients. For more information, please visit our website at www.MillerMusmar.com.