Federal Tax Payment Deadline Delayed for 90 Days

In response to the COVID-19 emergency, the federal government has granted a 90-day extension of the April 15 tax payment deadline. It’s a move made to free up much-needed liquidity for individuals and businesses in a time when cash is running low for many.

Individuals can delay payment of tax liabilities (ordinarily due on April 15 of each year) for up to $1 million, while corporations have a limit of $10 million. (You can read the IRS guidance on the matter here.)

Additionally, as of March 20 the IRS has also postponed the April 15 tax filing deadline to July 15. If you cannot make the July 15 filing deadline, you must submit an extension as you typically would under normal circumstances. Extensions are automatically approved by the IRS.

Please keep in mind that this payment deferral may result in significant payments due in June/July when considering 2020 estimated tax payments due at that same time.

Some individual states are also delaying payment dates to bring taxpayers relief. While Florida does not have a state individual income tax, this is something to consider if you have out-of-state business dealings or other possible forms of nexus. (Florida does, however, have a corporate state income tax that needs to be kept in mind.) The American Institute of Certified Public Accountants has supplied a tracking list of actions taken by each state regarding their tax deadlines.

As a firm, we will continue to work hard on your behalf to prepare your tax returns as we normally would. However, we understand individual circumstances may vary and will provide you the flexibility to file your returns or extend as necessary.

James Moore’s tax CPAs will stay vigilant in tracking this and other developments in the midst of the COVID-19 outbreak and will continue to keep you updated. Please contact us if you have any questions.

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