Payment Deadline Extended
Following President Trump’s emergency declaration pursuant to the Stafford Act, the US Treasury Department and Internal Revenue Service (IRS) issued guidance allowing all individual and other non-corporate tax filers to defer up to $1 million of federal income tax (including self-employment tax) payments due on April 15, 2020, until July 15, 2020, without penalties or interest. You still have to file your taxes by April 15, but if you owe taxes for 2019 (under $1 million), you have until July 15 to make your payment – without interest accruing or penalties on the late payment. If you’re a business owner who owes over $10 million, you, too, also need to pay your taxes by April 15.
“We encourage those Americans who can file their taxes to continue to file their taxes on April 15,” Treasury Secretary Steven Mnuchin said at the March 17 news conference. “Because for many Americans, you will get tax refunds.”
Can’t file by April 15? File a six-month extension until October 15. Even with the extension, however, taxes owed are due by the new July 15 payment deadline.
What about my state taxes? You’ll want to stay up to date on your state news. Some states, such as California and Maryland, have extended their tax return filing deadlines. For instance, California’s tax filing deadline is now June 15, and Maryland’s is July 15. Experts assume that many more states likely will tweak their own filing deadlines, especially now that the federal government has made its move. Stay tuned.
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