The Coronavirus has intruded into all facets of our lives. As we all try to grapple with the uncertainty this situation brings we still find ourselves in the midst of tax filing season, an already stressful time for business owners and other taxpayers.
The Treasury Department issued guidance yesterday clarifying Secretary Mnuchin’s announcement on Tuesday that taxpayers can delay income tax payments due April 15, 2020. The guidance provides that for all taxpayers affected by the COVID-19 emergency, with Federal income tax payments up to a specified amount:
The specified amount for the tax payment for C corporations is up to $10,000,000, and the specified amount for all other taxpayers is up to $1,000,000, regardless of the taxpayers filing status. For example, the specified amount is the same for a single individual and for a married individual filing a joint return. In both cases the specified amount is up to $1,000,000.
It should be noted that in determining the maximum specified amount that can be postponed under the relief provided by this guidance, that amount includes, in the aggregate the Federal income tax payments and Federal estimated income tax payments.
The guidance expressly provides that no extension of time for filing Federal tax returns due April 15th is granted. Therefore, tax returns or extensions must be filed by the April 15th due date. Furthermore the tax payment extension applies only to income tax and not to any other type of tax due (for example, Federal payroll taxes).
The AICPA has also established a webpage with its guidance on the situation including a helpful summary of how the various states have responded thus far. AICPA Coronavirus Resource Center
WISS is continuing to work diligently as this crisis persists. We will continue to monitor the federal and state governments’ response. Please contact your Wiss professional with questions.