Today the IRS issued guidance that individual taxpayers who owe up to a million dollars in federal income taxes can defer paying until July 15, while corporations can defer up to $10 million due to the COVID-19 pandemic.
Individuals and businesses will be granted a 90 day extension to pay taxes they owe. The 90 day extension for payment of owed tax does not delay the April 15 filing deadline unless a taxpayer has filed for an extension. Individuals who make estimated payments have a 90 day extension on their first quarter estimate due April 15 as well.
There is no special filing required to obtain this automatic payment extension. The IRS will simply not assess penalties or interest during the 90 day extension period. Again, this does not delay the April 15 filing deadline.
This delay is applicable to federal income taxes only at this time. States are not bound by IRS policy but most tend to follow Federal leadership.
The notice from the IRS can be found here.
HPG encourages you to provide your information in a timely manner if possible so we are able to file or extend by the deadline.
We will keep you updated on Federal and State developments as things progress. As always, please know that we are here to help in any way possible.