The information contained in the below publication was current at the time it was published. The COVID-19 programs evolve continuously, and the relevant information may have changed since publication. Readers are advised to discuss their particular situation with their Crowe BGK advisor.

MEMORANDUM

 

Date:                     March 20, 2020

From:                    Crowe BGK US Tax Group

Subject:                US Department of the Treasury Announcement - Taxpayer Relief Measures

Treasury Announces Extension of Income Tax Payment and Tax Filing Due Dates

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:

	FEDERAL	FEDERAL
	Initial due date (note 1)	New due date (Note 1)
Individuals
Filing of income tax returns	April 15, 2020	July 15, 2020
Payment of the income tax balance for the year 2019	April 15, 2020	July 15, 2020
Payment of the first tax instalment for the year 2020	April 15, 2020	July 15, 2020
Corporations (Calendar-year ends)
Filing of income tax returns	April 15, 2020	July 15, 2020
Payment of the income tax balance for the year 2019	April 15, 2020	July 15, 2020
Payment of the first tax instalment for the year 2020	April 15, 2020	July 15, 2020

 

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.