IRS Payments Deferred 90 Days On March 17, 2020, the Secretary of the U.S. Treasury announced that taxpayers who owe an April 15, 2020 payment to the IRS may defer up to $1M as an individual and up to $10M for corporations, interest-free and penalty-free for 90 days. First quarter 2020 estimated tax payments are included in taxes eligible for deferred payment. Please note: the filing due date was NOT changed. You must still file your tax return or an extension by the original April 15, 2020 due date.
State Actions The California Franchise Tax Board has announced that individuals have a 60-day extension of time to both file and pay by June 15. The extension applies to first quarter estimated tax payments also. We do not yet know which of the other state revenue departments will allow payment deferment. Many are currently considering their response to this situation. For the time being, you should plan to make any state payments, other than those owed to California, by their original due date.
If you’d like to check on the status of a specific state, the American Institute of Certified Public Accountants has posted a chart on their website with information.
The federal and various states’ response to the current situation is changing rapidly. We will continue to monitor the situation and in an effort to be sensitive to everyone’s time and attention, we will post additional updates to our website as they become available. If you have any questions, please contact your Miller Cooper representative.