On March 13, 2020, President Trump issued an emergency declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act due to the ongoing COVID-19 pandemic. Under the emergency declaration, the IRS was instructed to “provide relief from tax deadlines to Americans who have been adversely affected by the COVID-19 emergency.”
On March 17, 2020, Treasury Secretary Steven Mnuchin announced that certain tax payments could be postponed without penalties and interest. Notice 2020-17 was released on March 18, 2020 to provide guidance on what payments qualify for the postponement.
Affected taxpayers can postpone up to the Applicable Postponed Payment amount until July 15, 2020.
- An affected taxpayer is any taxpayer with a federal income tax payment due on April 15, 2020.
- The Applicable Postponed Payment amount for individuals is up to $1,000,000, regardless of filing status.
- The Applicable Postponed Payment amount for corporations is up to $10,000,000.
The due date postponement is only applicable to tax payments due on April 15, 2020 for the 2019 tax year and estimated tax payments due on April 15, 2020 for the 2020 tax year.
The payment or deposit of other types of taxes, for example gift, payroll, and excise taxes, have not been extended. Any amount due on April 15, 2020 for other types of taxes are still due.
Interest and penalties will not accrue on the portion of unpaid taxes under the Applicable Postponed Payment amount; however, if a taxpayer has a tax liability in excess of the applicable amount, interest and penalties will accrue on the unpaid portion that exceeds the applicable amount. Furthermore, if payment is not received on or before July 15, 2020, interest and penalties will begin to accrue on the full amount of the missed tax payment.
Note that this relief does not provide for an automatic extension. All tax returns due on April 15, 2020 must be filed or extended as normal.
Our office will work to keep all of our clients updated on any changes to the April 15, 2020 deadline.
Since 1996, Rosenfield & Company, PLLC (one of the first accounting firms to specialize in the automotive industry), has continually strengthened its skill set in several niche accounting industries. Their unique expertise and deep bench strength set them apart from other CPA firms, making them one of the leading CPA firms serving Automobile Dealerships, Manufacturers and Distributors, Publishing Companies, Broker/Dealers, Cruise Lines and other businesses and high net worth individuals. In addition, they have staff certified in Business Valuations and in assisting in Complex Litigation and Bank Workout matters. They take pride in providing precise and efficient work to clients while still offering access to the same resources provided by large international firms. Their dedication and expert abilities keep them agile and attuned to meeting your company’s business needs. As a CPA firm, their services are offered globally to clients, with offices located in Orlando, Florida, New York City, New York and Iselin, New Jersey.
If you would like more information, please contact Tara Carapellucci at 407-985-2597 or email at email@example.com.