COVID-19 Tax Update #1

Today the Treasury Department announced that the April 15th deadline for paying your 2019 taxes has been pushed back to July 15th.  Individuals can defer up to $1,000,000 and corporations can defer up to $10,000,000.  Amounts above those figures will still need to be paid by April 15th or presumably be subject to penalty and interest.  Please note that we will still be filing extensions for all incomplete individual returns and corporate returns as normal.

It is our position that if the IRS is going to give you an extra 90 days to pay your tax, you take it.  However, we advise that we complete your returns as soon as possible.  This will give you clarity on the amount you owe and eliminate the administrative burden of the actual filing.

What is not clear at this point is whether or not you’ll be able to defer your 2020 estimated taxes as well.  The first payment would be due April 15th and the second payment would be due June 15th.  As we learn more we’ll keep you informed as soon as possible.

Keep in mind that all of this relates to federal income taxes only.  Each state will or has issued statements about their policies.  We will be addressing those policies in separate emails.

At this point our office is still open.  However, in person meetings have been postponed until April 15th so we can practice the recommended social distancing.  Some of our staff already work remotely and we have the capability to be 100% remote if need be.  In other words, our operations will continue as normal.

If you have any questions, please let me know.