Individual and certain corporate tax returns are due April 15. In the past, even if an extension was obtained, any projected tax owed had to be paid at that time or late payment penalties and interest would be assessed.
On March 17, 2020 the IRS announced that it will postpone the obligation to pay certain income tax balances due by April 15, giving them an additional 90 days to do so. No penalty or interest will be assessed if the tax owed is paid by the end of that 90-day period.
Individuals will be able to defer up to $1 million, and certain corporations, including some small businesses, will be able to defer up to $10 million. At this point income tax returns or extensions must still be filed by April 15.
This move was made in response to the existing and anticipated financial impacts of the coronavirus. Treasury Secretary Mnuchin said that the move could allow households to hold onto hundreds of billions of dollars for a bit longer than they otherwise could.
The IRS has not yet released details of how the payment extension will work. Look for additional information from JPS once it becomes available.
Need additional information or consultation regarding your tax or financial positioning? Contact JPS.
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About JPS:
DMJPS, PLLC is a 60+ year old accounting firm providing small to middle market businesses with tax, business consulting, audit, and technology solution services. With offices in Asheville, Boone, and Marion, NC, our CPAs and JPS team strive to provide personal service alongside technical expertise resulting in our clients’ long-term financial success. We also invest time and energy in our community, taking pride in doing what we can to make Western North Carolina a better place. JPS Mission: To Be Greater by positively impacting our Clients, People, Community and Profession.