TAX UPDATE – Tax Payment Deadline Extended 90 Days
On Tuesday, March 17, 2020, Treasury Secretary Steven Mnuchin announced that the President has authorized the following tax relief measures to assist taxpayers during the coronavirus pandemic:
- Individuals with taxes due on April 15 can defer on a penalty-free and interest-free basis balances due up to $1 million for a 90-day period of time. The Treasury Secretary noted that no application for deferral is necessary. The IRS will automatically waive the appropriate amounts of interest and penalties.
- Corporations will qualify for the same relief in amounts up to $10 million.
- This relief also includes estimated tax payments for the tax year 2020 that are due on April 15, 2020.
Shortly after the announcement from the White House, Maryland Comptroller Peter Franchot announced that Maryland business and individual income taxpayers will be afforded the same relief. It is expected that other states will follow suit, but don’t make any assumptions: Check with your state. (The American Institute of CPAs is keeping a list of states’ tax developments here.)
It is important to note that, as we write this, the IRS had not yet issued formal guidance on the policy, and the Treasury Secretary’s announcement did NOT delay the April 15 filing deadline.
This announcement left questions unanswered. Among them:
- Does this relief apply to Trusts and Estates?
- Does this relief apply to Estate taxes?
We will continue to keep you apprised of the situation as it continues to evolve.