The Treasury Department has announced a plan to extend the April 15 tax deadline, providing an additional 90 days to pay taxes owed for individuals and many businesses. Official details have not been released; however, it seems many taxpayers will benefit from the extension. We expect more information to be provided shortly, but below are some key points from the announcement, as well as a few points of uncertainty.
Details of the Announcement
- Treasury Secretary Steven Mnuchin announced his department is pushing back the April 15 deadline to pay taxes owed by 90 days.
- Individuals can defer up to $1,000,000 of tax liability, therefore if you owe less than $1,000,000 you can wait to pay your tax bill until July 15th.
- Corporations can defer up to $10,000,000 of tax liability until July 15th.
Other Important Items
- Based on the limited details provided, taxpayers are still required to file their tax returns by April 15th as the relief is merely an extension of time to pay taxes owed. This clarification is especially important for taxpayers who have certain information reporting included in their filings with steep late-filing/failure to file penalties.
- This is a Federal announcement. While some states have acted to delay the filing and payment obligations, some state filings and payments will still be required by April 15th.
Please contact a member of the Caroprese team directly should you need any further assistance by calling 973-475-8090.
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This publication is provided by Caroprese & Company as a service to its clients and colleagues. The information and content included in this publication should not be construed as technical advice. Questions regarding any matters discussed in this publication should be directed to Brandon Caroprese whose contact information is listed below:
Brandon Caroprese, CPA, MST