COVID-19, Proposed Tax Payment Delay

UPDATED MARCH 18, 2020

On Tuesday, Treasury Secretary Mnuchin announced that the White House economic stimulus plan included a 90-day penalty and interest free delay for payment of tax due. The tax due which may be deferred is limited to $1 million for individuals and $10 million for corporations.

It is important to note that the Treasury Secretary did not announce a change to the filing deadline of April 15. This may differ from what is being reported by some news outlets where articles may be written by non-tax professionals who are unaware of the difference in filing deadlines and payment deadlines. There was also no guidance on whether first quarter 2020 estimated tax payments will be delayed. We are awaiting official written guidance from the IRS. State income tax filing delays are in flux with limited official information available.

The American Institute of CPAs has reached out to the IRS to gain additional clarity on both the payment delays and the expectation for the filing deadline.

At KWC offices we have implemented social distancing and many of us are working remotely. The offices are open to receive mail and deliveries, we are available by phone or e-mail and you may use our client portal to send us information electronically. We are strongly discouraging any in person meetings with clients at this time.

The safety and well-being of our clients and staff are the highest priority. Our thoughts remain with everyone affected by the COVID-19 crisis.