Important Information on IRS Extension of Tax Payment & Filing Deadlines

We want to provide you with an update on the status of IRS filing and payment deadlines. In response to the cash flow difficulties faced by many individuals and businesses caused by COVID-19, this afternoon the IRS released Notice 2020-17 which extends the Federal tax payment deadline from April 15 to July 15. On March 20th, Secretary of the Treasury Steven Mnuchin announced that the federal tax filing deadline would be pushed back to July 15th. Minnesota Governor Tim Walz announced that the state tax deadline would also be delayed.

What this means for payments previously due April 15:

 

 Individuals can postpone up to $1,000,000 in federal income tax payments

  • More specifically, this means that an individual who has tax payments due on April 15, 2020 for 2019 income tax, and/or for 2020 estimated payments, can postpone paying up to $1,000,000 total.
  • If full payment is made by July 15, 2020 you will not incur any interest or late payment penalties.
  • The limit is for all payments due April 15 combined, the limit is not applied separately for each tax year.

 

 – Corporations can postpone up to $10,000,000 in income tax payments

  • A corporation that has tax payments due on April 15, 2020 for 2019 income tax, and/or for 2020 estimated payments, can postpone paying up to $10,000,000 total.
  • If full payment is made by July 15, 2020 the corporation will not incur any interest or late payment penalties.
  • The limit is for all payments due April 15 combined, the limit is not applied separately for each tax year.

 

What this means for filing your tax return:

  • Your tax return due date has for both federal and state has changed.. Tax returns are required to be filed or extended by July 15, 2020. 
  • We are continuing to move forward with gathering documentation, preparing tax returns, and filing extensions.
    • Please send in your tax documentation if you have not done so already.

 

We continue to monitor developments on the Federal and state levels and we want to ensure that you have access to the information and resources to help you through this challenging time.

Please contact your Lurie advisor with any questions regarding these changes.

Disclaimer:

This article is for your general education, and does not create a client relationship or any service engagement between you and Lurie LLP. The content of this article is based on the best information available, but official guidance, rules, laws and/or updates may change and become out of date. Please contact your Lurie advisor before acting on any of the information contained in this article.

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