Hantzmon Wiebel COVID-19 Action Plan
March 22, 2020, Update
Dear Hantzmon Wiebel Clients,
The Treasury Department and IRS recently announced that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020. This is a change to previous guidance from the Treasury which had indicated that tax payments may be delayed, but the due date for filing was unchanged.
As we noted in our previous correspondence, taxpayers could also defer federal income tax payments due on April 15, 2020, to July 15, 2020, if they fell within certain thresholds. At the time of our last correspondence, the initial guidance from the Treasury indicated the amount of delayed payments could not exceed $1 million for individuals and $10 million for corporate tax payers. The latest guidance from the Treasury eliminates the dollar amount thresholds for those tax liabilities to be deferred without incurring interest and penalties regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts, estates, corporations and other non-corporate tax filers, as well as those who pay self-employment tax.
Taxpayers do not need to file any additional forms to qualify for the automatic federal extension. If you require time to file beyond the new July 15 deadline, you can request an extension by filing Form 4868 for individuals or Form 7004 for businesses.
We continue to recommend that our clients provide information as soon as it is available.
In addition to these federal changes, we are closely monitoring each state’s response and decision about extended filings. Unfortunately, there is considerable inconsistency and rapid change.
If you have any questions regarding your return or payments, please contact your Hantzmon Wiebel team member.
We will continue to keep you updated as more information becomes available.
The Hantzmon Wiebel Team