On March 20, the IRS released a notice providing guidance for taxpayers with respect to the extension of time to file tax returns and to make certain tax payments. The details are as follows:
- The due date for filing federal income tax returns and making federal income tax payments due April 15, 2020, is automatically postponed to July 15, 2020.
- Payments of tax on self-employment income are included in the relief.
- Taxpayers do not have to file a request for extension of time to file their returns to be eligible for the relief.
- The new guidance states that it applies to individuals, trusts, estates, partnerships, associations or corporations.
- No extended payment date is yet provided for the second or third quarter estimated tax payments.
- There are no extended payment dates for the payment or deposit of any other type of federal tax, or for the filing of any federal information return as of this time.
Unlike the prior guidance issued Wednesday, March 18, the $1-million limit for individual and the $10-million limit for corporation payments have been lifted.
It is expected that states will follow the federal extension. So far, New York and Connecticut have indicated their intention to do so.
The Coronavirus Aid, Relief, and Economic Security Act or “CARES Act”, currently before the Senate, contains major tax relief provisions that will provide taxpayers with significantly greater relief.
We will continue to follow these developments and will provide additional information as we receive clarification. These are very challenging times. Please know that LB Goodman is here to help you with your financial questions and concerns.
If you have any questions, do not hesitate to contact us.