As part of an effort to provide some measure of tax relief during the COVID-19 outbreak, the IRS has pushed back the payment of taxes associated with the April 15 deadline to July 15, 2020. The income tax filing deadline of April 15 has not been changed, but the standard six-month filing extension is still available to all taxpayers. This applies to taxpayers (individuals, corporations and trusts) who owe 2019 income tax liability, including tax on self-employment income. The extension of the income tax payment deadline applies to all taxpayers filing extensions.
Other details announced included:
- The income tax payment extension is available to corporations owing up to $10 million.
- For all other affected taxpayers regardless of filing status, the relief is available to those who owe up to $1 million. Anything above $1 million must be paid by April 15 as long as an extension has been filed prior to April 15th.
- Interest and penalties will not apply during the 90-day extension on payments.
- The deadline to file 2020 first quarter estimated tax payments, including taxes on self-employment income, is also extended to July 15, 2020.
- As of now, second-quarter estimated tax payments are still due June 15, 2020.
STATE RETURNS
Most states – including Illinois – have not yet released any statements or guidance regarding an extension of the April 15 income tax filing and payment deadline.
If you are our client, we plan to file an extension on your behalf by March 20th. All business returns are already on an extension until September 15, 2020, and all individuals not completed by Friday will be on extension until October 15, 2020. However, we will still be working and will plan on completing all returns in a timely manner.
While our offices are not closed, we have only a limited number of employees in the office for essential functions. Fortunately, we have all the tools necessary to allow our staff to work remotely and for you to work with us from the comfort of your home using your phone, tablet, and desktop computer.
If you have any questions, please don’t hesitate to reach out to your contact at The Hechtman Group Ltd. Thanks for your patience and understanding.