The department of Treasury recently announced that the IRS is deferring the payment of taxes owed for 90 days. Individuals and corporations now have until July 15 to submit payments. Individuals will be able to defer payments of up to $1 million in federal taxes owed, while corporations can defer up to $10 million. This payment relief applies to all individual returns, including self-employed individuals, and all entities such as C Corporations, trusts or estates.
However, it is important to note that the deadline to file taxes remains April 15 (unless an automatic six-month extension has been submitted). The extension only applies for payments of federal tax owe.
Extending the payment deadline will give businesses and individuals nearly three more months to meet their IRS obligations, and relieves some of the financial pressures they are facing due to the Coronavirus quarantine and prevention measures.
The IRS is also considering delaying the estimated quarterly tax payments that self-employed workers and businesses pay the IRS throughout the year, but no announcement has been made. We will be monitoring the situation, and as more details become available, we will keep you updated.
Our tax advisors are available to discuss any questions or concerns you may have regarding your tax return or filing status.
If you would like to see the official IRS announcement, click here: https://www.irs.gov/newsroom/payment-deadline-extended-to-july-15-2020
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