Date: March 20, 2020
From: Crowe BGK US Tax Group
Subject: US Department of the Treasury Announcement - Taxpayer Relief Measures
On March 17, 2020, U.S. Secretary of the Treasury Steven Mnuchin announced that the Department of the Treasury will be deferring the April 15th deadline to pay taxes owed. Individuals and many businesses will have an additional 90 days to make their payments to the IRS.
Individual taxpayers will be able to defer up to $1 million of tax liability. Corporations will also receive an extension on up to $10 million of tax liability. This delay applies to 2019 tax liabilities as well as the taxpayer’s first quarter estimated tax payments for their upcoming tax year.
Further, on March 20, 2020, U.S. Secretary of the Treasury Steven Mnuchin announced an extension to file personal and business tax returns by an additional 90 days to coincide with the tax payment extension announced a few days earlier.
A listing of the new dues dates can be found below:
Initial due date (note 1)
New due date (Note 1)
Filing of income tax returns
April 15, 2020
July 15, 2020
Payment of the income tax balance for the year 2019
April 15, 2020
Payment of the first tax instalment for the year 2020
Corporations (Calendar-year ends)
Note 1: The above dates are applicable to individuals and corporations with calendar (December 31) year-ends. We are still waiting to confirm the new extended due dates
for corporate entities with tax year other than December 31. It is likely that those entities with year-ends that fall in the first half of 2020 will also be provided this extension relief as well.
States and Local Tax Jurisdictions
We are still awaiting the various state & local tax departments to chime in as to whether they are conforming to these IRS tax relief measures. The IRS has stated they will push these other tax jurisdictions to conform.
Please stay tuned for updates on further announcements as they are made.