IRS Announces Extensions:
2019 Tax Payments and 2020 1st Quarter Estimated Tax Payments

The Internal Revenue Service (IRS) announced a 90-day tax payment extension to July 15, 2020, for many individuals and corporations. Previously, if a taxpayer owed tax to the IRS, payment would have been due on April 15, 2020. But now, tax payments up to $1 million for individuals and up to $10 million for corporations (not part of a consolidated tax return filing) can be deferred for an additional 90 days.

The IRS indicates that this payment deferral is available whether a taxpayer files by April 15 or if they extend their tax return, and that the IRS’ issuance of tax refunds will not be affected by this extension of time for taxpayers to pay. The $1 million deferral for individuals applies whether an individual files as single or as married filing jointly.

The IRS has also confirmed that this tax payment deferral applies to 1st quarter 2020 estimated tax payments that would also have normally been due on April 15.

Our tax professionals continue to temporarily work remotely to serve our clients for the April 15 deadline. We will also update you as we receive additional information from the IRS.

Questions? Contact your Whittlesey Advisor.

Disclaimer: Our content, comments, and answers to questions should not be construed as specific advice for your particular situation. The statutes and rules related to the SBA lending provisions and other programs are complex and you should consult with your financial and tax advisors for guidance regarding the application of the law to your particular facts and circumstances.