Tax Payment Deadline Postponed: Relief for Taxpayers Affected by Ongoing Coronavirus Pandemic

tax payment deadlineOn March 13, 2020, the President of the United States issued an emergency declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act in response to the ongoing Coronavirus Disease 2019 (COVID-19) pandemic (Emergency Declaration). The Emergency Declaration instructed the Secretary of the Treasury “to provide relief from tax deadlines to Americans who have been adversely affected by the COVID-19 emergency.”

Federal Tax Payment Deadline Postponed

Any person with a Federal income tax payment due April 15, 2020, including the 2020 first quarter estimate, is postponed to July 15, 2020. The Postponed Payment Amount is up to $10,000,000 for each C corporation and $1,000,000 for all others regardless of filing status. For example, the Postponed Payment Amount is the same for a single individual and for married individuals filing a joint return. In both instances the Applicable Postponed Payment Amount is up to $1,000,000.

As stated above, the relief is available solely with respect to Federal income tax payments (including payments of tax on self-employment income) due on April 15, 2020 and Federal estimated income tax payments (including payments of tax on self-employment income) due on April 15, 2020, for the Taxpayer’s 2020 taxable year.

As of this writing, no extension is provided for the payment or deposit of any other type of Federal tax, or for the filing of any tax return or information return. The official deadline for filing Federal income tax returns remains April 15, 2020.

Interest, penalties, and additions to tax with respect to such postponed Federal income tax payments will begin to accrue on July 16, 2020. In addition, interest, penalties and additions to tax will accrue, without any suspension or deferral, on the amount of any Federal income tax payments in excess of the Applicable Postponed Payment Amount due but not paid by an Affected Taxpayer on April 15, 2020.

Business Continuity

Last week, we announced our strategy and plans to continue to work through whatever challenges we may face during the Coronavirus (COVID-19) pandemic. In light of new developments in our region, and in the interests of protecting the health of staff who are committed to your business needs, as well as doing our part to be good citizens in our communities, we will take additional steps now to curtail the spread of this virus. We have made the difficult decision to close all three of our physical offices for the next two weeks, and we plan to reopen on Tuesday, March 31st. During this time, our partners and staff will continue to be fully accessible to our clients and to address scheduled work remotely. As before, we will have the same access to phones, email, and fax, as well as through our client portal. We are thankful to be in an age of digital technology that allows many businesses to continue with minimal disruption.

Once again, we would like to assure you that you will continue to experience the high level of client service that is the hallmark of Buchbinder’s approach.

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