Many of you having been waiting to see the details of what the recent tax payment relief will entail. Eder, Casella & Co would like to share the newly released offical guidance trom the IRS. Below is an outline of the key points to be aware of.
The IRS has not pushed the filing deadline – as of now the tax filing deadline remains April 15. Of course, as always, taxpayers can still file an extension. For those of you that have not provided your 2019 tax information, please do so as soon as possible so we can take care of your tax preparation in time to meet the April 15th filing deadline. In an effort to practice “social distancing”, we are encouraging everyone to drop off, mail or upload your documents instead of trying to schedule a tax appointment.
Currently, there have not been any changes for the State of Illinois tax payments.
Individual Taxpayer Relief
The IRS is allowing individual taxpayers to defer the payment of federal income tax, up to $1,000,000, until July 15, 2020. You will not be assessed interest and penalties on the first $1,000,000 until July 15, 2020. However, any amount above $1,000,000 will start accruing interest and penalties as of April 15, 2020.
The relief also allows for deferral of the first quarter estimated tax payment originally due on April 15, 2020. The second estimated tax payment is still due on June 15,2020.
Corporate Taxpayer Relief
The IRS is providing corporate income income tax relief as well. Federal income tax payments can be deferrred on balances up to $10,000,000 until July 15, 2020 without incurring penalties and interest.
For those of you that have already filed and setup your payment for electronic withdrawal and would like to take advantage of the extended payment date, you will need to cancel your current payment. To do so contact the IRS e-file Payment Services, available 24/7, at 1-888-353-4537 to cancel your payment. Please wait 7 to 10 days after your return was accepted before calling. Cancellation requests must be received no later than 11:59 p.m. ET two business days prior to the scheduled payment date. The necessary payment voucher and mailing information for individuals can be found at the link below.
We will continue to monitor the situation and inform you of any changes as information becomes available. If you should have any tax questions please feel free to reach out to our tax specialists at Eder, Casella & Co.