Articles
COVID-19 Changes Tax Deadline
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3/27/20 UPDATE: On orders of President Trump, the Treasury Department is deferring the filing and paying of federal taxes to July 15 for individuals and businesses. This is part of the effort to lessen the damage the coronavirus has done to the economy.
Will states follow suit? Ohio and Michigan extended their tax filing deadlines to July 15 as well. The American Institute of Certified Public Accountants has been tracking states' responses, which you can view on their web site for updates on other states.
Since response to the pandemic has been so fluid, you should check with a tax professional regarding the filing and payment of federal, state, local and school taxes. Our tax attorneys are available to assist.
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Original Article: Recently, President Trump announced that he is directing the Treasury Department to defer the April 15 tax filing deadline for individuals and some businesses that have been negatively affected by COVID-19 (a.k.a. coronavirus). President Trump announced this as part of his effort to lessen the damage the coronavirus has done to the economy.
However, at the time of writing, just who will be able to defer past the April 15 deadline is still unclear. Treasury Secretary Steve Mnuchin said the extension would help “small and medium-sized businesses and hard-working individuals” who have been affected by the virus. Secretary Mnuchin also said that the deferment would cover “virtually all Americans other than the super-rich,” and that it would not apply to large corporations as well. It is still unclear what income levels will benefit from the delay and what income levels will not. Mnuchin told the House Appropriations subcommittee that Congressional approval is not necessary for the Administration to grant this delay. Those eligible under the delay would not have to pay their taxes by the April 15 deadline, and the IRS would waive interest and other penalties for going past the deadline. In addition to the delay proposed by the Administration, Congress may choose to act as well, and pass additional legislation that will delay the tax filing deadline.
While the President’s announcement is likely good news for many Americans, until more clear instruction/regulations are made available, taxpayers should still treat April 15 as the deadline for filing their taxes, whether they are individuals or businesses. Should you have any questions, please contact one of our tax attorneys.
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Disclaimers:
At the date of publication the above information was correct. It is quite possible the information above has changed as COVID-19 is a rapidly evolving situation.
The article in this publication has been prepared by Eastman & Smith Ltd. for informational purposes only and should not be considered legal advice. This information is not intended to create, and receipt of it does not constitute, an attorney/client relationship.