IRS Covid-19 Relief
The Internal Revenue Service and the Treasury Department are providing a special payment relief program to businesses and individuals in an effort to ease the burden from the COVID-19 outbreak.
The first this to note about the IRS program is the filing deadline stays the same. The due date for the 2019 tax returns for individuals is still April 15th, 2020 and there is still the option for a 6-month extension until October. There is however payment relief and there won’t be penalties or interest charged for 90 days. For those individuals, trusts and estates who owe less than $1 million with their tax return the payment deadline are being extended from the April 15th deadline to July 15th2020. Corporations also get relief with their payments until July 15th in amounts up to $10 million.
Another item that is impacted with this extension is for anyone that will be paying 2020 quarterly estimates, with the first payment would be typically due April 15th. This first payment due date has also been extended to July 15th, 2020. Currently, states are not following the IRS’s relief strategy but many are expected to roll out their own version.