Update for Our Clients Regarding Tax Deadlines and COVID-19
The Marston Group continues to closely monitor events surrounding the rapidly changing situation involving the Coronavirus (COVID-19) pandemic. We are dedicated to keeping you informed on any changes in federal or state tax deadlines that may affect you.
As anticipated, yesterday the Treasury Department announced that the U.S. Government is postponing the April 15 tax payment deadline for millions of individuals, giving Americans an additional 90 days to pay their 2019 income tax bill. April 15 has always been the deadline for any tax payments due with the return, even if the actual filing date of the return is extended. The change in the payment due date is intended to ease the economic burden inflicted by the Coronavirus pandemic, and to provide temporary liquidity to households and businesses as they cope with the sudden slowdown in economic activity caused by the virus.
Treasury Secretary Steve Mnuchin stated that individual taxpayers who owe federal tax payments of up to $1 million can defer payment of those taxes until July 15, 2020, (a 90-day extension of time to pay) without incurring interest or penalties. Corporations can also defer federal tax payments of up to $10 million until July 15, 2020 without incurring interest or penalties. Taxpayers will qualify for this extension of time to pay without the need to file any special forms requesting it, since the payment deadline will be automatically extended.
The tax return filing deadline currently remains April 15, 2020. However, as in the past, both individual and corporate taxpayers can obtain an automatic extension of time to file their tax returns. This automatic extension provides an additional 6-month period of time, until October 15, 2020, to file the federal return. If this information changes, we will update you accordingly.
As of now, the Treasury Department and Internal Revenue Service have not clarified whether individual and corporate taxpayers can also defer first quarter 2020 estimated tax payments, which are also due on April 15, 2020. As we receive additional information regarding this issue, we will pass it along to you.
To protect the health and safety of our team members and clients during the Coronavirus pandemic, many of The Marston Group's employees may be working remotely during this time. Our office currently continues to remain open, although we understand that this situation could change at any time, possibly on short notice. We will continue to monitor the situation and update you as conditions warrant.
Thank you for your patience and understanding as we all navigate these unusual circumstances. We wish you and your family good health.
The Marston Group, PLC