IRS EXTENSION TO ‘PAY ONLY’ DUE TO COVID OUTBREAK

CORRECTION: On March 20, the April 15 1040 FILING deadline was extended to July 15, 2020.

To all clients:

We’re hearing alot said about about how the IRS has extended April 15.
This only applies to the extension of time to PAY taxes, NOT an extension ot time to FILE, which would still require taxpayers to request an automatic 6 month extension.
The Payment extension only applies to payments that are due on April 15, extending the deadline to July 15.
This applies to Individual 1040 payments that would be due with a tax return on April 15.
This applies to C Corporation 1120 payments that would be due with a business’s C Corporation tax return that is normally due on April 15.
Lastly, this also applies to any estimated tax payments for 2020 that are normally due on April 15, 2020.
Since most of our clients often have a refund coming, the most significant part of this rule change is delaying the estimated tax payments due date to July 15. There is no change to the June 15 estimated due date, so what’s normally the first estimate is due July 15, and what’s normally the second estimate is due June 15.

As far as states go, New Hampshire has made no changes at this writing, and Massachusetts has said it will follow federal relief.
Given the nature and uncertainty surrounding this crisis, we are recommending that clients take full advantage of this interest free loan. You also may wish to consult with your accountant prior to making the July 15 payment if you have experienced a significant reduction in income in 2020.

As usual, please let us know if you have other questions.

Sincerely,
Steven Feinberg and the amazing Appletree staff

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