Treasury Extends Deadline to Pay Income Taxes by 90 Days
Due to the Coronavirus Pandemic, the Treasury announced Tuesday that it will be pushing back the April 15th deadline to pay income taxes owed for 2019 by 90 days. In other words, until July 15, 2020, no taxpayer will be charged interest or penalties on income taxes owed to the federal government for 2019.
The extension announced by the Treasury will give millions of individuals and businesses additional time to pay off 2019 income tax liability owed to the government. Specifically, individuals and small businesses, including passthrough entities such as partnerships and LLCs, may defer the payment of income tax up to $1 million, and corporations may defer the payment of income tax up to $10 million.
The new deadline only applies to federal income taxes owed for 2019 and does not apply to state income taxes owed for 2019. Some states like California, however, have followed in the government’s footsteps and have extended not only the payment of state income tax liability for 2019, but also the filing of state income taxes for 2019. New Jersey and New York have not yet provided for such extensions.
It is important to note that taxpayers must still file their 2019 income tax returns by the April 15th deadline or seek an extension. Similarly, as of now, the deadline to file gift tax returns and estate tax returns for 2019 remains the same.
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As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.
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