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US Treasury Delays April 15 Deadline to Pay Taxes
The Treasury Department has announced today March 17, 2020, their plan to extend the April 15th deadline to pay taxes owed for individuals and many businesses by 90 days. Official details have not been released; however, based on the announcement it seems many taxpayers will benefit from the extension. But do not get too complacent. You still have to file your taxes by April 15th or you may be subject to late filing penalty. We expect more information to be provided shortly, but below are some key points.
What was announced?
Treasury Secretary Mr. Steven Mnuchin announced his department is pushing back the April 15 deadline to pay taxes owed by 90 days.
Individuals can defer up to $1,000,000 of tax liability, therefore if you owe less than $1,000,000 you can wait to pay your tax bill until July 15th.
Corporations can defer up to $10,000,000 of tax liability until July 15th.
States are not yet on board!
This is a Federal tax Decision, not a state decision. While some states have already acted to delay the filing and payment obligations, unless all of them respond with similar relief, some state filings and payments will still be required by April 15th.
First-quarter 2020 estimated tax payments are still due April 15th, for now. The administration has indicated they are considering delaying the first-quarter federal estimate payment as well
What details are we waiting on?
The announcement was unclear as to what is required from individuals owing more than $1,000,000 or corporations owing more than $10,000,000.
Our tax Team at MillerMusmar CPAs are watching these matters closely. We will send further updates. Any questions please contact us at +1-703-437-8877 email us at firstname.lastname@example.org
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, and 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.