Tax Payment Deadline Postponed
As a result of the COVID-19 outbreak, the Internal Revenue Service has issued certain guidance affecting both individual and business taxpayers. This is a fluid situation and, we would expect that further guidance and mandates will be forthcoming from the IRS and state taxing authorities in coming days. The following highlights what we know so far:
For individuals – For most individuals, the 2019 income tax payments, which were normally due by April 15, 2020, will be due July 15, 2020. There will be no penalties or interest assessed for individual income tax balances during this period. The postponement of time to pay will also cover quarterly estimated taxes for the first quarter of 2020. These estimates would normally be due on April 15, 2020 but will now be due July 15, 2020. The time to file your personal return has not been extended. However, we will file for automatic extensions for our clients whose returns are not completed by April 15th. The postponement of time to pay applies only to income taxes of up to $1,000,000.
For businesses – For calendar year businesses, the 2019 income returns, which were due March 16, 2020, will not be affected. However, there will be a postponement of time to pay income taxes due April 15, 2020 until July 15, 2020. The postponement to pay applies to income taxes of up to $10,000,000. This does not extend the time to file your business return.
For other non-business taxpayers – Follow Individual rules
All taxpayers – It is important to note, the IRS has not extended the time to pay other taxes such as payroll taxes or excise taxes. The State of Mississippi has not yet issued guidance about whether they will follow the federal payment postponement. Therefore, at this time, we recommend that you pay your 2019 Mississippi tax liability as well as your first quarter Mississippi estimate by April 15th.
What this means for GranthamPoole – We will continue to work toward completing your tax returns during this time. Over the years, we have invested in technology which allows most of our professionals to work remotely from their homes to continue to serve our clients’ needs. However, as a result of this guidance and the ongoing COVID-19 outbreak, we may have to extend some tax returns that are usually filed by April 15th and complete and deliver your returns a little later. This is necessary so that we may address business and individual needs arising during this critical time for our country. We made plans well in advance to ensure our business operations continue. We are ready and eager to help.
How we can help– We are here to assist you with cash management plans, critical staffing assessments, remote working arrangements, and other issues that are now vital to the health of our businesses. Please contact us if we can assist you.
For more information, visit this link to the IRS Notice or contact your GP advisor.