By Kevin O’Connor & Demetrius Robinson
In light of the coronavirus pandemic, U.S. Treasury Secretary Steven Mnuchin announced at a news conference today that individual taxpayers will be allowed to defer any 2019 federal tax obligation for up to 90 days. By pushing back the April 15 filing deadline, the Treasury will not impose interest or penalty on amounts due with the 2019 return up to $1 million for individuals and $10 million for corporations. Ordinarily, taxpayers are required to pay at least 90% of their tax liability if they extended their return.
Additionally, the Trump administration is also considering delaying first quarter 2020 estimated payments for self-employed individuals and sole proprietors whose payment is ordinarily due April 15.
Taxpayers are still encouraged to continue to file their tax returns, if possible, especially if they may be due a refund. In addition, be sure to review whether or not your state intends to grant reprieve from either filing a tax return or paying applicable tax. Some states, including California and Maryland, are already granting filing extensions for taxpayers based upon the disruption caused by the coronavirus.
We will supply more details as they become available. In the meantime, if you have questions or would like to discuss further, please reach out to Kevin O’Connor at kto@kjk.com or 216.736.7213 or Demetrius Robinson at djr@kjk.com or 614.427.5749, or contact any of our Tax professionals.