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Tax Payments Have Been Deferred

Mar 18, 2020 | COVID-19

Tax Payments Have Been Deferred

As the COVID-19 situation continues to change on a daily basis, abip would like to take some time to inform clients of the relief that the federal government has passed thus far. Below are some common questions we have been receiving and the answers to those questions – as of today’s date.

Are Tax Filings Delayed This Year?
The individual & corporate tax filing deadline or the deadline to file an extension remains April 15th, 2020.

When Is the New Payment Deadline?
Income tax payments are being issued a 90-day waiver of penalties and interest from the IRS. The maximum amount that can be deferred is $1M for individuals and $10M for corporations. This means that individuals, trusts, estates and corporations have until July 15th, 2020 to pay their tax bill, assuming that it falls under those maximum amounts. According to IRS guidance, this payment deferral is only applicable if you file the returns or an extension by April 15th, 2020.

What About Estimated Tax Payments?
The relief also extends to estimated tax payments for tax year 2020 that were due on April 15th, 2020. These payments are now due July 15th, 2020 and there will be no penalties or interest on them.

We Are Here For You
The rules for additional COVID-19 related relief are changing daily. abip will be sure to update clients on a regular basis when relevant news is announced.