Tax Payment Relief Due to Coronavirus | Accounting and Tax News

IRS provided additional relief which superseded this guidance. Refer to updated IRS relief.

As the spread of COVID-19 (coronavirus) continues, IRS has announced various measures to provide relief to taxpayers. Below is a summary of the measures announced related to tax payments.

Deferred tax payments

IRS has announced deferral of tax payments for 90 days. Individuals can defer up to $1 million in tax payments that would have been due on April 15th for 90 days without any interest or penalties.

Corporations can defer tax payments of up to $10 million for 90 days.

Tax returns or extensions still needed

Even with the deferral in payments, individuals and corporations are still required to file their taxes or apply for 6 months extension by April 15th.

Estimated tax payments

The 90 days payment extension also applies to estimated tax payments that were due on April 15, 2020. Therefore, the estimated tax payment that was due on April 15, 2020 is now due on July 15, 2020. This relief does not change any other estimated tax payment dates.

Important Deadlines

Individual Tax Return or Extension - April 15, 2020
Individual Tax Payment* - July 15, 2020

C-Corporation Tax Return - April 15, 2020
C-Corporation Tax Payment* - July 15, 2020

First estimated tax payment for 2020* - July 15, 2020

*Combined payment relief is $1 million for individuals and $10 million for corporations.

We are here to help

As individual taxes are still due on April 15th, we can assist you in filing your taxes or getting a 6 months extension. We can assist you remotely with your tax preparation needs. We have an online tax preparation process in place where you can upload documents to our secure portal and we can prepare and e-file your taxes. We are also available to answer your questions via email or phone.

More information on the tax payment relief can be found at here.

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