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Watching for Specifics on Deadline Changes

3/18/2020

Treasury Secretary Steve Mnuchin announced today (March 17) a series of measures designed to assist taxpayers and tax preparers during the coronavirus pandemic.

RINA Accountants & Advisors is anticipating the publication of the specifics of these actions by the Treasury and IRS. We will post updates on social media, website, and other platforms as soon as possible.

In his press conference Secretary Mnuchin said that individuals and corporations can delay their tax payments for 90 days due to the coronavirus pandemic. Individuals can defer up to $1 million in payments for 90 days from the April 15 deadline. Corporations can defer up to $10 million in payments for 90 days. During that time, the IRS will not charge interest or penalties.

The announcement did not address the April 15 deadline to file tax returns. It only talked about changing the deadline to pay taxes owed.
[See March 20, 2020 Alert for update on tax deadline.]

As of this writing, the IRS had not yet issued formal guidance on the policy.

The delay, as announced, affects 2019 federal income taxes only. Payment of 2020 estimated tax payments, payroll taxes, or estate and gift taxes was not addressed.

As we noted yesterday, the California Franchise Tax Board has announced special tax relief for California taxpayers affected by the COVID-19 pandemic.

Affected taxpayers are granted an extension to file 2019 California tax returns and make certain payments until June 15, 2020[Since changed to July 15, 2020.] This includes:

  • Partnerships and LLCs who are taxed as partnerships whose tax returns are due on March 15 now have a 90-day extension to file and pay by June 15, 2020[Since changed to July 15, 2020.]
  • Individual filers whose tax returns are due on April 15 now have a 60-day extension to file and pay by June 15, 2020[Since changed to July 15, 2020.]
  • Quarterly estimated tax payments due on April 15 now have a 6090-day extension to pay by June 15, 2020[Since changed to July 15, 2020.].
  • The FTB’s June 15 extended due date may be pushed back even further if the Internal Revenue Service grants a longer extension period.

We continue to monitor official government communications and will pass along updates as soon as we receive authoritative information.

The RINA professional staff will continue to work remotely during this crisis. We invite you to contact your accountant by phone or email whenever we can help.

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