In our ongoing efforts to ensure that our clients receive uninterrupted service and are well-informed in the midst of these challenging times, Tidwell Group stays connected to the news that matters to our clients and we share highlights that are important to you.
Issue: In response to the COVID-19 crisis, the IRS and Treasury Department are providing special payment relief. Specifically, federal tax payments (including estimated 2020 tax year payments) that are due April 15, 2020, are now deferred without interest or penalty until July 15, 2020 (with certain limitations).
Caution: Note that the original filing deadline for any tax returns that are due April 15, 2020, continues to be April 15, 2020 (unless a six-month extension to file is submitted to the IRS).
Key Points (according to IRS correspondence):
- For taxpayers expecting a refund, the IRS recommends filing as soon as possible.
- Individuals: Income tax payment deadlines with a due date of April 15, 2020, are automatically extended until July 15, 2020, for up to $1 million of 2019 tax due.
- C Corporations: Income tax payment deadlines are automatically extended to July 15, 2020 (of up to $10M of 2019 taxes).
- This relief provided by the IRS only applies to federal income tax. It does not include state tax payments.
This information does not constitute tax advice. For information and guidance on how this tax alert may affect your tax situation, please reach out to your Tidwell Group professional.
