Tax News: IRS Announces Extended Deadline for 2019 Tax Returns
Americans Can Defer for 90 Days on their Tax Returns
As we continue to face uncertain times, the IRS has made a welcome announcement regarding our tax returns.
Treasury Secretary Steven Mnuchin has announced that the IRS has decided to extend the filing and payment deadline for 2019 tax returns, allowing taxpayers to defer until July 15. Mnuchin indicated this move will put $300 billion into the economy during a time of great economic concern over the consequences of the COVID-19 pandemic.
The payment deferment is subject to certain caps, however. Individuals may defer tax payments of up to $1 million, while corporations may defer up to $10 million. The limits were purposefully selected to benefit small businesses that report income through corporations, partnerships or other pass-through entities.
What does this mean for state tax filing deadlines?
State tax officials have been largely silent with regard to the announcement of a federal extension. However, the Franchise Tax Board (FTB) announced that taxpayers in California who have been affected by the COVID-19 pandemic will be granted an extension to file tax returns and make payments until June 15, 2020. The FTB will also be waiving any interest, late filing, or late payment penalties that may have otherwise applied.
We will continue to update you on developments as the IRS and state officials clarify their intentions. In the meantime, don’t hesitate to reach out if you need additional information or guidance. We are committed to providing you with the knowledge you need to successfully navigate this unprecedented time in history.