Federal Tax Filing and Tax Payment Relief for Covid-19

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Federal Tax Filing and Tax Payment Relief for Covid-19

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To help businesses and individuals focus on recovering and staying afloat amidst the COVID-19 scare, the Treasury Department and IRS have issued relief for federal tax filing and payments.

FEDERAL TAX FILING AND TAX PAYMENT RELIEF FOR CORONAVIRUS/COVID-19 PANDEMIC

Following President Trump’s emergency declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act due to the ongoing Coronavirus Disease 2019 (COVID-19) pandemic, the U.S. Treasury Department and Internal Revenue Service (IRS) have issued federal income tax filing and payment guidance for individuals, other non-corporate and corporate tax filers.

On March 20, 2020, Treasury Secretary Steven Mnuchin, at the direction of President Trump, announced that the April 15th filing date will be moved to July 15th, giving taxpayers more time to file their taxes in the midst of the COVID-19 pandemic.

The IRS issued Notice 2020-18 (Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic), spelling out the formal guidance on the Tax Day delay. This notice restates and expands upon the relief provided in Notice 2020-17 (Extension of Time to Make Payments of Federal Income Tax, Response to Coronavirus [COVID-19]).

All taxpayers and businesses will have this additional time to file and make payments without interest or penalties. Affected Taxpayers aren’t required to file any documentation such as Forms 4868 or 7004 to take advantage of the delay. There is no limitation on the amount of the payment that may be postponed.

The relief provided in this notice is available solely with respect to Federal income tax payments (including payments of tax on self-employment income) and Federal income tax returns due on April 15, 2020, in respect of an Affected Taxpayer’s 2019 taxable year, and Federal estimated income tax payments (including payments of tax on self-employment income) due on April 15, 2020, for an Affected Taxpayer’s 2020 taxable year. No extension is provided in this notice for the payment or deposit of any other type of Federal tax, or for the filing of any Federal information return.

More information regarding this notice is available here

WE’D LOVE TO HELP.

We will continuously update you regarding evolving news surrounding legislative and administrative issuances dedicated to relieve the general public of the effects of COVID-19. Stay tuned with the advisory bulletin. For immediate clarifications, please contact us at taxteam@scrubbed.net or discuss it with your Scrubbed professional.

Disclaimer

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. It is not intended to be relied upon as accounting*, tax, or other professional service. Please refer to your advisors for specific advice. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.