Breaking News: In an afternoon press conference yesterday, Treasury Secretary Steven Mnuchin announced a plan to extend the April 15 tax payment deadline for individuals and many businesses by 90 days. You are still required to file your tax returns by April 15th unless you decided to extend your return. Official details have not been released; however, based on the announcement it seems many taxpayers will benefit from the extension. We expect more important information to be provided shortly. Below are some key points from the announcement, as well as a few points of uncertainty.
What we know
- Treasury Secretary Steven Mnuchin announced his department is pushing back the April 15 deadline to pay taxes owed by 90 days.
- Individuals can defer up to $1,000,000 of tax liability, therefore if you owe less than $1,000,000 you can wait to pay your tax bill until July 15th.
- Corporations can defer up to $10,000,000 of tax liability until July 15th.
What hasn’t been extended…yet?
- This is a Federal Treasury Department decision. While some states have already acted to delay the filing and payment obligations, unless all of them respond with similar relief, some state filings and payments will still be required by April 15th.
- First quarter estimated tax payments are still due April 15th, for now. The administration has indicated they are considering delaying the first quarter federal estimate payment as well.
What are we waiting on?
- The announcement was unclear as to what is required from individuals owing more than $1,000,000 or corporations owing more than $10,000,000.
- At the time of our writing it seems as though taxpayers are required to file by April 15th, and this is merely an extension of time to pay taxes owed. This clarification is especially important for taxpayers who have certain information reporting included in their filings with steep late filing/failure to file penalties.
As more details are released, the TKO team will be sure to keep you posted.
If you have any additional questions please call us at 847-695-2700, email your TKO accountant/representative or visit us at www.tkocpa.com.