CORONAVIRUS TAX UPDATE

20 Mar CORONAVIRUS TAX UPDATE

TAX CHANGES
DUE TO THE CORONAVIRUS

On Wednesday, following President Trump’s emergency declaration under the Stafford Act on March 13, 2020, the U.S. Treasury Department and IRS released official guidance to provide relief from tax deadlines to assist in economic relief efforts related to the impact of COVID-19. As of Wednesday, March 18th, the following facts have been released via IRS Notice 2020-17:

• Individual taxpayers can defer up to $1 million of federal income tax (including self-employment tax) payments due on April 15, 2020, until July 15, 2020, without penalty or interest.

• Corporate taxpayers can defer up to $10 million of federal income tax payments due on April 15, 2020, until July 15, 2020, without penalty or interest.

• The relief is available solely with respect to Federal income tax payments due on April 15, 2020 as it relates to a taxpayer’s 2019 taxable year, and Federal estimated income tax payments due on April 15, 2020 for a taxpayer’s 2020 taxable year.

• The period from April 15, 2020 through July 15, 2020 will be disregarded in the calculation of any interest, penalty or addition to tax for failure to pay and will begin to accrue on July 16, 2020.

• No extension is provided for the payment or deposit of any other type of Federal tax.

• The extension provided to pay federal income tax due on April 15, 2020 does not extend the filing of any tax return. Any individual or corporation is still required to file their tax returns by April 15, 2020 as this guidance does not change the April 15th filing deadline.

At this time, the New York State Tax Department has not extended the deadline to file personal income tax or any other tax returns. We will continue to update you if new information becomes available.

We will bring you more information about SBA loan programs, unemployment information and credits as we are able to decipher the information for you.