Extension of payment deadline

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The Treasury Department and the Internal Revenue Service announced today that the deadline for paying taxes that would be due on April 15, 2020 has been extended.  This includes:

+Tax of up to $1 million owed on individual 2019 tax returns,
+Tax of up to $10 million owed on corporate 2019 tax returns, and
+Estimated tax due for Quarter 1 of 2020.

The deadline for paying is now July 15, 2020.  This is an automatic extension of the payment due date, so taxpayers don’t need to apply for or request the extension or contact the IRS to find out if they qualify.  If you owe the federal government less than $1 million of 2019 taxes (or $10 million if you file a return as a C-Corp), your payment deadline is now July 15, 2020.

Please note that the due date for
filing your 2019 tax returns remains April 15, 2020.

This new, automatic extension only applies to payments, not to filing.  Normally, filing and/or paying taxes after the due date results in a failure-to-file penalty or a failure-to-pay penalty or both.  Every year we file extensions routinely, which extend the filing deadline to Oct 15, but do NOT extend the payment deadline.  This year, that payment deadline has been extended automatically to July 15.

What this means for our clients is this:
If we file an extension for you, you don’t need to worry about whether you’re going to owe tax or get a refund.  Carrie will be able to complete all returns well before the new July 15 payment due date, so no one will be filing or paying late because we couldn’t get your returns done, signed and filed by April 15.

We’re pleased that the IRS has taken this step, and hope that it offers some relief to all of us who have been impacted by the COVID-19 outbreak.

Stay well!