COVID-19 Updates

Secretary Mnuchin speaks and tweets:

After a press conference and a tweet from Secretary of Treasury Mnuchin telling us about a delay in payments and a delay to the filing date, the IRS and Treasury formalized his announcement in IR-2020-58, released March 21, 2020.
  • The federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020.
  • Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax.
Note. This is a change from a prior IRS announcement regarding the payment delay.

 A few things to note:

The IRS has created a special corona virus page on its website for updated information — from the horse’s mouth as they say.
Because of the due date delay, 2019 IRA and HSA payments can be made as late as July 15, 2020.

There is no change to the June 15, 2020 2nd quarter estimated tax payment. However, watch for the legislation working its way through the Senate as it is supposed to postpone all tax payments until October 15, 2020. After all, many small businesses will be closed and making estimated tax payments based on 2019 income is foolish for many.

There is, at the moment, no delay to your fiscal year C corporation’s due date. Only the calendar year return that was due April 15, 2020 has been extended. The FY January 31, 2021, due May 15, 2020 has not been extended.