The US Department of Treasury issued guidance on Wednesday, March 18, 2020 to provide relief to some taxpayers (but not all) who have a federal income tax payment due on April 15, 2020.
The relief announced on March 18th allows any person (including corporations) that has a federal income tax payment due April 15, 2020 to postpone the required payment to July 15, 2020. That includes payments normally due with a return, or payments of estimated taxes due with a request for an extension of time to file.
This relief is limited to federal income tax payments and does not apply to employment taxes and other tax obligations. Additionally, the amount that can be postponed is limited to $1 million for individual taxpayers, and $10 million for C corporations (and consolidated corporate groups).
The initial Treasury guidance on the postponement of payments did not relieve taxpayers of the obligation to file tax returns by the April 15th filing deadline.
However, US Treasury Secretary Steven Mnuchin stated on Friday, March 20, that individuals and business will have more time to file tax returns and make tax payments without interest or penalties. The April 15 filing date applicable to most individual taxpayers now will be extended to July 15. Formal notice of that tax return filing extension is expected to be released later today.
ABOUT JAMES MARKWOOD
James Markwood is a Principal in Offit Kurman’s Business Law and Transactions Group, based in the firm’s Tysons Corner and Washington D.C. offices. He is an experienced tax attorney, with over 30 years of experience working for AMLAW 100 Law Firms and the M&A Tax Group of a Big Four Accounting Firm. His practice now includes advising clients on tax considerations of cryptocurrency transactions.
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