IRS Announces Emergency Tax Relief for COVID-19

Please see the most recent update regarding the IRS Extended Tax Payment Deadline Notice. 

On March 18, 2020, the Internal Revenue Service released Notice 2020-17, providing information and guidance to taxpayers as the United States addresses the global COVID-19 (Wuhan coronavirus) pandemic. 

President Donald Trump issued an emergency declaration on March 13, 2020, empowering Treasury Secretary Steven Mnuchin to grant certain relief to taxpayers as more and more sectors of the U.S. economy are shuttered or otherwise contracted to slow the spread of the virus.

The following actions have been taken by the Treasury Department to grant relief to taxpayers:

• The due date for all federal income tax payments due on April 15, 2020 is postponed to July 15, 2020. This relief is granted not only for income tax payments due for the 2019 tax year, but also for federal estimated income tax payments for the 2020 tax year, the first payment of which is ordinarily due on April 15, 2020.
• Payments due on this date will not begin accruing IRS interest and penalties until July 16, 2020.
• For individuals, the maximum amount that can be deferred under these provisions is $1 million. This amount is irrespective of your filing status, so a Married Filing Jointly (MFJ) return is also limited to $1 million.
• For corporate entities, either individually or collectively if they file in a consolidated group, the limitation is $10 million.

The tax relief provisions DO NOT extend the due date for the filing of any income tax or information return, only the due date for payment. Additionally, only income and self-employment taxes are covered. The due date for the payment or deposit of any other type of income tax is unaffected by this relief.

We understand that in these times there can be information overload, especially when the world is changing around us on a seemingly daily basis. MRPR stands ready to help you with any issues.