A bit of good news, at a press conference held yesterday, U.S. Treasury Secretary Mnuchin announced the following extensions for federal income tax payments:
Individuals and businesses with an April 15 filing deadline will be given an additional 90 days to pay taxes:
- Individuals will be able to defer up to $1 million of tax liability; and
- Corporations get an extension for up to $10 million.
Mnuchin was not specific about late-filing penalties for either the March 15 or April 15 deadlines, but it appears interest and penalties will be waived automatically. He stated, “All you have to do is file your taxes. You will automatically not get charged interest and penalties.”
The IRS has not provided any written guidance as we are only relying on the press conference. There are still many issues that we are still waiting for guidance to clarify, such as:
- Does this extension delay April 15th, 2020 estimated tax payments?
- Do extensions need to be filed on April 15th?
In light of this information from the IRS, California may extend their previously issued postponement of June 15th to match the IRS date of July 15th.
We will provide additional information when formal guidance is issued by the IRS.
The Partners and Staff of Delucchi Hawn, LLP are here to assist you during these challenging times. if you have any questions, please do not hesitate to contact us.