The GPL Tax Team is aware that Treasury Secretary Steve Mnuchin announced this week a series of tax relief measures designed to assist taxpayers during the coronavirus pandemic. As we continue to monitor the release of Treasury guidelines, we will update our client as soon as possible. Please continue to monitor our firm’s webpage for updates.
Below are the major specifics of the proposed tax relief measures:
- Federal Filing and Payment: A proposed extension to pay your tax liability is being finalized in DC. Based on the official White House briefing, taxpayers should be receiving a 90 day extension to pay their tax bill beyond the April 15th deadline. The deferrals are up to $1 million per individual filing, and up to $10 million per corporate filing. The expected revised due date will be July 15, 2020. Please be advised, if you owe more than the stipulated deferral amounts, the excess needs to be paid timely.
- 2020 Estimated Taxes, payroll taxes or estate and gift taxes. The delay, as announced, affects 2019 federal income taxes only. The government did not address 2020 estimated tax payments, payroll taxes, or estate and gift taxes.
- State Filing and Payment: California announced a 60 day extension to file and pay, and many more states are assumed to follow the IRS timelines. More details will be available in the coming days.
- Extensions: We extend ALL our clients as a precautionary measure, so rest assured you will be extended and have additional time to pay. We will process as many tax returns in a timely fashion ensuring quality and compliance. At this time, the Internal Revenue Service has not extended the time to file extensions and/or tax returns.
- Income Assistance: On March 17, 2020 the Department of Treasury announced a plan to provide working adults with a stimulus payment of $1000.00 within the next two weeks. We are currently awaiting additional guidance from Congress as to what this looks like and who is to receive this stimulus.
- Penalties & Interest with the IRS: At this point, we are unsure about the waiver of underpaid estimated tax payment penalties. We will provide updates as they are available. Late payment penalty and interest will not be assessed until after July 15th, we will update you with official IRS guidance once it is published.
We will continue to keep our clients abreast with any tax development, and will strive to help our community one return at a time!
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