Tax payments are deferred for 90 days!
The IRS announced taxpayers can delay paying their income taxes on as much as $1 million owed for up to 90 days.
How does this affect you?
Federal Tax Deferral On March 17, 2020 Treasury Secretary Mnuchin announced that TAX RETURNS ARE STILL DUE APRIL 15. However, payments that are due on April 15th, or due with an extension on April 15th, may be delayed until July 15, 2020 without penalty or interest. If the return is not timely filed, or properly extended the 90-day relief will not apply. The maximum amount of deferral is $1,000,000 for an individual and $10,000,000 for a corporation. Refunds are unaffected. Within 90 days of April 15th the amount is due, without penalty or interest, and the IRS says they will not assess penalty or interest. Underpayment penalties for periods before April 15th appear to still apply. State Tax Deferral California Executive Order On March 13, 2020 the California Franchise Tax Board (FTB) announced an extension to FILE and PAY individual tax returns until June 15, 2020, quarterly estimates that were due April 15 will now be due June 15, and partnerships and LLC’s whose returns were due March 15 are now due June 15, 2020 as well. The FTB will probably now delay this until July 15 to match the IRS extension, according to their website. The FTB will also waive interest and any late filing or late payment penalties that would otherwise apply. Connecticut Press Release On 3/15/20 the state extended individual relief until July 15, 2020 (to follow Federal relief) and extended business returns until June 15. Indiana Bulletin Announcement On 3/16/20 the Department of Revenue announced that they are prepared to follow Federal guidance. Am official announcement is expected by 3/20/20. Maryland Bulletin On 3/11/20 the Comptroller delayed business filings until June 1, 2020 and states that “Maryland will also extend our corporate and individual income tax return filing deadlines if the IRS announces an extension." “If the IRS extends its April 15th filing deadline for corporate and individual income tax returns, Maryland will conform to the decision of the IRS.” Massachusetts Webpage In the event the Internal Revenue Service (IRS) issues tax relief to taxpayers with federal filing obligations, DOR is prepared to follow the IRS in offering similar relief for taxpayers with Massachusetts tax filing obligations. Oregon DOR website “If the IRS declares the April 15th due date to be extended due to the COVID-19 pandemic, Oregon will automatically connect to those dates for personal income tax filers. The department may also waive penalties under certain circumstances if a taxpayer is late in paying its tax obligation due to a circumstance beyond the taxpayer’s control, such as a declared regional or national state of emergency. Estimated payment due dates for personal income tax are not extended for Oregon, however Oregon law states that interest will not be imposed on an underpayment of estimated tax if the department determines that by reason of casualty, disaster, or other unusual circumstances the imposition of interest would be against equity and good conscience.”