The IRS released official guidance today that taxpayers can delay making their income tax and estimated tax payments, which would normally be due on April 15th.
- Taxpayers will be granted a 90 day extension to pay income tax and the first quarter estimated payments.
- The 90 day extension for payment does not delay the April 15th filing deadline unless a taxpayer has filed for an extension.
- Individuals may defer up to $1 million of tax liability and corporations will be granted an extension up to $10 million without penalty or interest.
- First Quarter estimates that would normally be due on April 15th, can be paid on July 15th. However, second quarter estimates are still due on June 15th.
- This delay only affects income tax payments due on April 15th. All other returns and payments will not be affected and their due dates remain unaltered.
At this time, the Commonwealth of Virginia has not changed the May 1st filing deadline and the response by other states has varied, complicating an already chaotic situation.
If you have not submitted your tax documents, please do so promptly, even if you are missing a few items. This will allow us to better manage our workflow in the event office hours are reduced.
What does this mean for you?
- If you still need to send in your tax documents please do so promptly
- You will still need to send in your efile forms by the normal due date
- Electronic signature of documents is available using DocuSign. If you would like to update your e-file authorization preference to electronic signature, please contact Dana Roberts at firstname.lastname@example.org.
- Efile forms can be returned by fax or email:
- If using US mail, please be mindful how potential closures could affect delivery
- If you know you will need an extension please inform us in advance of April 15, 2020
Given the current times and how fast the situation is changing day to day, we understand the difficulties this might impose on our clients. Please know we are trying to balance the safety of everyone while continuing to serve you at the highest levels. We sincerely appreciate you allowing Mitchell Wiggins to serve you.
To view other communications from the firm in relation to COVID-19, visit our blog.