Last week, as a result of the COVID-19 crisis, the Internal Revenue Service (IRS) issued Notice 2020-18, which provides two forms of relief for April 15 taxpayers:
- An automatic extension of time to file individual and corporate tax returns. Both individuals and businesses now have until July 15, 2020, to file their tax returns and make any necessary payments without interest or penalties. Individual and corporate tax returns not filed by April 15 will be granted an automatic extension of time to file without the requirement of submitting Form 2848 or Form 7004, respectively, in order to receive that extension.
- An opportunity to defer the remittance of any necessary tax payments to the IRS.
While the Department of the Treasury (Treasury) encourages taxpayers who expect a refund to proceed with filing as soon as possible, the extension is favorable to those who anticipate having a tax liability. It is also important to note that taxpayers may still file their tax returns prior to July 15, yet wait to remit payment until that date. If individuals and businesses require time beyond July 15, they must complete Form 2848 or Form 7004, respectively, to extend filing to October 15. The additional extension does not provide extra time to pay the liabilities associated with a return.
While the Treasury has afforded these extended deadlines to individual and corporate taxpayers, not all states have publicized whether they will also provide automatic extensions to file state tax returns and/or pay tax liabilities. We are monitoring each state and will provide guidance to our clients as more information becomes available.
We recognize our clients may fall into one of two categories of taxpayers–those who wish to file by April 15, and those who wish to exercise the time extension for filing and remitting payment. Regardless of your preference, please contact our PYA Tax Concierge Stephanie Morton at firstname.lastname@example.org or the number below no later than March 31, 2020, so we can devote the resources necessary to meet your expectations.
We stand ready to assist you in whatever is best for your personal situation, both from an individual and business perspective. If you have questions about anything noted above, or would like assistance with any matter related to tax preparation, tax planning and strategy, or business advisory, contact PYA at (800) 270-9629. We are happy to help however we can.
Disclaimer: To the best of our knowledge, this information was correct at the time of publication. Given the fluid situation, and with rapidly changing new guidance issued daily, be aware that some or all of this information may no longer apply. Please visit our COVID-19 hub frequently for the latest updates, as we are working diligently to put forth the most relevant helpful guidance as it becomes available.