At a press conference today, U.S Treasury Secretary Mnuchin announced extensions for federal income tax payments for individuals and business owners due the effects of COVID-19 on the nation.
Individuals and businesses with an April 15, 2020 filing deadline will be given an additional 90 days (July 15, 2020) to pay the taxes they owe. Individuals will be able to defer up to $1 million of a 2019 tax liability; and corporations get an extension for up to $10 million.
While late-filing penalties for either the March 15, 2020 or April 15, 2020 deadlines were not specifically discussed, it appears interest and penalties will be automatically waived. “All you have to do is file your taxes,” said Mnuchin. “You will automatically not get charged interest and penalties.”
Although these announcements will relieve some stress for taxpayers, our Gumbiner Savett Inc. team still needs ALL CLIENT INFORMATION, as soon as possible, to estimate the liability for 2019 and file your return(s) or extension(s) by April 15, 2020, including 1st quarter estimates.
Gumbiner Savett Inc. will continue to provide additional information when formal guidance is issued by the IRS. The Franchise Tax Board in California announced special tax relief for California taxpayers affected by the COVID-19 pandemic. Affected taxpayers are granted an extension to file 2019 California tax returns and make certain payments to June 15, 2020, for all tax filings and payments due between March 15, 2020, through June 15, 2020. We will let you know if the due date for California is extended to 90 days as well.
Thank you to all of our clients.
The Gumbiner Savett Inc. Tax team