On March 13, 2020, President Trump issued an emergency declaration in response to the ongoing COVID-19 pandemic that instructed the Secretary of the Treasury “to provide relief form tax deadlines to Americans who have been adversely affected by the COVID-19 emergency.” In response, the Internal Revenue Service officially announced today that the due date for making Federal income tax payments due April 15, 2020, is postponed to July 15, 2020. Postponed payments are limited to $1 million for individuals and $10 million for C corporations.
This payment deferral includes both remaining 2019 income tax payments due (including payments of tax on self-employment income), as well as Q1 2020 estimated tax payments. The postponement does not provide for a filing deferral. Tax returns or extensions due on April 15th must still be filed by that date. Interest and penalties for unpaid taxes after the deferral period will begin to accrue on July 16, 2020.
Many state jurisdictions are also extending payment and filing deadlines in response to the Federal postponement. We expect more definitive guidance from these jurisdictions in the coming days. Real-time updates on state responses can be found here.
If you would like to discuss your specific financial and tax situation with us, please reach out to your Siegfried Advisory team member today to set up a time. We will continue to closely monitor the implications and changes that arise as a result of the COVID-19 situation. Please do not hesitate to reach out to us if you have any questions or concerns.
– Your Siegfried Advisory Team