We recently received an important update from the IRS – and it may be the boost American taxpayers need right now.
Yesterday afternoon, Treasury Secretary Steven Mnuchin announced the IRS will allow most Americans an extra 90 days to pay their 2019 federal income taxes without interest or penalties. The announcement follows President Trump’s declaration of a national state of emergency amidst the COVID-19 pandemic.
Although it’s not clear, the announcement does not appear to change the April 15 tax filing deadline. However, the government is aiming to ease the economic impact of the coronavirus outbreak by allowing more time for individuals and businesses to pay taxes owed. Officials hope this will help Americans to focus on controlling the coronavirus and keep money in their pockets – presumably to spend on economic stimulus items.
The 90-day postponement is available for individual taxpayers who owe $1 million or less and corporate taxpayers who owe $10 million or less. Secretary Mnuchin said this action could provide approximately $300 billion in temporary liquidity.
While funds are not due until July 15, apparently the IRS still is requiring Americans to file their 2019 returns by the April 15 date. The IRS will continue to process tax refunds, but taxpayers will need to file their returns to get any refund due them. The standard six-month extension remains available, as well.
Another uncertainty is whether the first quarter 2020 estimated tax payments will continue to be due on April 15. SST will monitor this issue and advise you if we hear clarifying information.
SST’s tax department stands ready to help both individuals and companies navigate these latest developments, as well as other 2020 tax updates. To learn more about our tax services and connect with an SST tax professional, click here.