The Trump administration has announced that most individuals and businesses can delay paying [and filing] taxes until July 15, 2020 due to the coronavirus. Details are still emerging, but the hope is that this will keep upwards of $300b in the economy during the global economic slowdown.
Tax Payers do not need to file by April 15th
Businesses suffering from the global economic slowdown now have 90 days longer to pay AND FILE taxes. This may allow loans from the SBA to come through increasing cash flow and allowing businesses hardest hit to afford those tax payments.
Taxpayers still have the option to request the six-month extension. IRS’s website is being constantly updated during these challenging times, check with them for updates.
Who can delay payment?
Individuals who owe IRS less than $1 million and corporations who owe up to $10 million are eligible to delay payment. As this news is evolving questions around trusts and other more complex situations will need to be clarified.
What are the penalties?
Because of the extraordinary circumstances of coronavirus, there will be no interest or penalty payments.
Will refunds still be sent?
As of March 18th, 2020, IRS is processing taxes as usual, issuing refunds, sending tax bills and auditing businesses with red flags on tehir returns. Continue to file as usual with the same level of care and attention to detail.
CA State Taxes are delayed to June 15:
Many states have not moved their payment deadlines however, the state of California has moved their filing and payment deadline to June 15th. .
The situation is ever-evolving. Check back often for updates.