The Treasury Secretary announced on March 17th that relief is being offered to taxpayers during this viral COVID-19 outbreak. The federal government is allowing taxpayers a 90-day extension of time to pay their taxes both penalty and interest free.
Do I still need to file my taxes by April 15th?
Although taxpayers will have a 90-day penalty and interest waiver, the April 15th deadline is still the filing date deadline. The announcement means that generally, if there is a tax due with the return on April 15th, the penalties and interest will be waived for a period of 90 days to give the taxpayer additional time to pay. Payments can be made without incurring interest and penalty charges from April 15, 2020 until July 15, 2020.
Who qualifies for the extension of time to pay?
Any individual with a tax payment amount up to $1,000,000 qualifies for the 90-day payment extension regardless of the return filing status. This 90-day extended time to pay is also applicable to the April 15th estimated tax payment that is due for taxpayers who will pay quarterly estimates for tax year 2020.For C Corporations and for each consolidated group, the payment relief is available for payment amounts up to $10,000,000. The $1,000,000 payment amount limit applies to all other taxpayers (individuals, trusts, estates, etc.) regardless of filing status.Again, the postponed payment relief applies to federal income tax payments (including payments of tax on self-employment income; 2020 quarterly estimate) due on April 15, 2020. For questions and more details, contact your HHM representative.