The Internal Revenue Service and U.S. Treasury released guidance on March 20, 2020 to give filers and advisers coping with the COVID-19 pandemic more time to prepare tax returns.
The new guidelines extend the tax filing deadline to July 15, 2020, aligning the filing deadline with the extended deadline for payments. It also permits unlimited tax payment deferral for all taxpayers during those additional three months.
The guidance supersedes and expands the IRS guidance issued earlier this week that only extended the payment due date and limited individuals’ tax payment deferrals up to $1 million and corporations’ deferrals up to $10 million without interest and penalties.
We expect the federal and state response to COVID-19 will intersect with your individual and business tax situations, including certain tax relief measures and the tax consequences of other stimulus packages. We are monitoring both federal and state bills and administrative guidance and will do our best to keep you informed during these trying times.
Meanwhile, if you have questions about these guidelines or other tax issues, please contact Sandra Martin Clark or your Manning Fulton relationship attorney.
