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IRS Deferring Tax Payments by 90 Days

Posted by Zinner & Co. Tax Department on Mar 18, 2020 9:29:28 AM

Tax Deadline Remains April 15

While taxpayers still have to file their taxes by April 15, 2020, the deadline to pay taxes has been extended by 90 days until July 15, 2020.

During a March 17th press conference regarding the coronavirus pandemic, U.S. Treasury Secretary Steven Mnuchin announced taxpayers will have an additional 90-days through July 15, 2020 to pay their taxes, penalty-free and interest-free. 

He said individual taxpayers can defer up to $1 million of tax payments and corporations up to $10 million in tax payments.

Mnuchin also announced the Treasury Department would not extend the April 15 deadline, citing the ability to file taxes online. 

“We encourage Americans, who can file taxes, to continue to file taxes on April 15 because for many Americans, you will get tax refunds and we don’t want you to lose out on those tax refunds,” he said.

As has always been the case, a taxpayer has the ability to file an extension request extending the filing due date of their Federal tax returns until October 15.  By removing the penalty and interest charges related to potential late payment of any outstanding 2019 tax liabilities, we plan to file extension requests with no payment submission before the April 15 due date, for all clients whose returns have not yet been completed.  This action will facilitate our clients’ ability to take full advantage of the tax payment deferral program.

While there is some clarity regarding Federal tax filing requirements, the following issues have not yet been addressed:

  • The required payment of first quarter, 2020 estimated tax payments which would typically be due on April 15, 2020.
  • Taxpayers should also be aware that the tax filing and payment deadline has not been changed for most state or municipal tax filings, as of yet.
  • Additionally, there has not been any discussion or guidance regarding the payment of corporate income taxes for corporations who have a fiscal year end.

Furthermore, although there has been much discussion on Capitol Hill, Congress has not yet finalized actions that would create a payroll tax cut or a tax holiday.

During these unprecedented days, Zinner & Co. will continue to monitor the guidance and will communicate pertinent information as it becomes finalized.

Zinner & Co. is taking appropriate steps to protect both our staff and clients during the COVID-19 outbreak. 

As of now, our offices remain open.  

If you do not feel comfortable visiting our office in person, we strongly recommend you take advantage of electronic methods available for you to submit your information to us. These same methods can be used to deliver information and products to you as well.

Please contact a member of your Zinner Client Service Team if you would like to know how to use these methods or to discuss other options.

Zinner & Co. is committed to providing the same high-level service our firm has provided to you in the past. Our staff is continuing to work, either on-site or remotely, to meet your tax, accounting and other deadlines.

Topics: tax services, Taxes - Corporate & Business, Taxes - Planning, Rules and Returns, Taxes - Individual, tax, taxes, IRS, Coronavirus, Treasury Department, Steven Mnuchin, COVID-19, Deferring Tax Payments

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