DEFERMENT INCLUDES 2020 FIRST QUARTER TAXES

Video Transcription:

The treasury department is granting a 90 day extension for filing income tax returns and paying taxes. Individual taxpayers are able to defer paying up to one million dollars of federal income and self-employment taxes, until July 15th, without penalties or interest. Corporations, meanwhile, can defer paying up to 10 million of federal income taxes for 90 days without penalties or interest. If the taxpayer exceeds these limits, the excess will accrue interest beginning April 15, 2020 and if they don’t make the postponed payment by July 15, 2020, interest will begin accruing July 16. This deferment also includes 2020’s first quarter estimated taxes which are due April 15, 2020. So far, there’s been no mention of the second quarter estimated taxes, so presumably, those payments are still due on June 15, 2020. You should know we are also monitoring state reactions to the irs payment deferral. Some states have already announced delays due to COVID- 19, but other states have been waiting on this IRS announcement. It’s likely that many states may piggyback off the federal guidance in this matter, but we will continue to monitor. Automatic six month extensions are still available, and the usual payments due with the extensions. Doane & Doane is here for you! The situation is changing rapidly, so if you have questions call us or visit doaneanddoane.com. We will get through this –together.