In an attempt to keep you up to date with recent developments that may affect the filing of your personal and business tax returns, we wanted to make you aware that the IRS has issued Notice 2020-17, Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic, yesterday in response to Treasury Secretary Steven Mnuchin's comments at a press conference on March 17, 2020. The notice states that individuals can defer federal income tax payments otherwise due on April 15, 2020, up to $1 million in the aggregate (regardless of your filing status), until July 15, 2020. Corporations can defer up to $10 million of tax payments until July 15, 2020. The relief is solely for federal income taxes due on April 15, 2020 and federal estimated income tax payments due on April 15, 2020.
This notice does not extend the tax filing due date. For individuals, the filing date is April 15; however, an automatic extension to file until October 15 is available.
We have not received any word on how most states will react to this payment extension as of the drafting of this notice.
Seim Johnson, LLP is continuing our process of preparing your various tax returns; however, we have had to take unprecedented steps to protect our professional staff as a result of the COVID-19 pandemic that will undoubtedly affect our ability to complete all returns by April 15, 2020. As such, we are anticipating the need to extend more client returns than normal. We appreciate your patience and understanding through this process. We will continue to keep you informed as various federal, state and local governments implement changes that will affect you and your businesses.