AICPA Update – March 18, 2020 — Volume 27 No. 15
In a press conference on Tuesday, Treasury Secretary Steven Mnuchin announced that individuals and corporations can delay their tax payments for 90 days due to the coronavirus pandemic. Individuals can defer up to $1 million in payments for 90 days from the April 15 deadline. Corporations can defer up to $10 million in payments for 90 days. During that time, the IRS will not charge interest or penalties.
As of this writing, the IRS had not yet issued formal guidance on the policy. Mnuchin’s announcement did not delay the April 15 filing deadline.
The delay, as announced, affects 2019 federal income taxes only; Mnuchin did not address 2020 estimated tax payments, payroll taxes, or estate and gift taxes. For state tax developments related to the coronavirus outbreak, see the AICPA list here.
The relief came four days after President Donald Trump had declared the coronavirus pandemic a national emergency. Under Sec. 7508A, the declaration of an emergency under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, P.L. 100-707, allows the IRS to delay certain tax filing and payment deadlines.
As early as last Tuesday, members of Congress had begun calling for a delay in the April 15 deadline, and last Wednesday the AICPA called for Treasury and the IRS to provide relief to all taxpayers.
AICPA Update – March 16, 2020 — Volume 27 No. 14
As a follow-up from our SBA announcement yesterday, regarding the SBA potentially extending financial aid to small businesses nationwide, The AICPA sent us an update regarding the likelihood of extending the tax deadline by up to 90 days. Below is the exact messaging from the AICPA. At LB&J we are committed to helping small businesses stay on top of these changes, so please stay tuned to updates regarding any confirmed tax extension along with the financial assistance the SBA is considering and other ways to mitigate the impact to your small business during this challenging time.
AICPA Update – March 15, 2020 — Volume 27 No. 13
Yesterday, we told you about our efforts and conversations with the Treasury Department and the IRS to secure filing and payment relief for taxpayers and tax preparers in light of the uncertainty and challenges caused by the spread of the Coronavirus (COVID-19) pandemic.
Based upon our conversations, we anticipate that Treasury and the IRS will announce this week an extension of the April 15th deadline by as much as 90 days, and a waiver of penalties and interest for most taxpayers.
Additionally, Treasury and the IRS are aware of the major deadline for businesses tomorrow, March 16th, and the challenges facing taxpayers and tax preparers in meeting that deadline. They have indicated that they would be generous in determining reasonable cause abatement of any penalties for taxpayers and tax preparers unable to file in a timely manner.
We will continue to keep you updated as we receive more information.
You can also visit our AICPA Coronavirus Resource Center for frequent updates and resources to help you manage clients’ needs and your business at this time.