Earlier today, Treasury Secretary Steven Mnuchin announced that the tax filing deadline will be extended until July 15. This extension will allow Americans to focus their attention on their families, communities, and businesses during this challenging time.
In a March 18 Tax Alert, we noted that the April 15 tax payment deadline had been extended until July 15, offering taxpayers the opportunity to delay tax payments for 90 days. During this time, the IRS will also waive interest and penalties. Individuals who owe taxes will be able to defer up to $1 million and corporations up to $10 million. However, at the time there was no consideration given to extending the April 15 tax return filing due date.
Two separate tax deadlines – one for filing and another for payment – would have only added to the confusion and uncertainty Americans are already facing. There were growing calls throughout the week for Treasury to also extend the tax filing deadline. On Thursday, bipartisan legislation was introduced by Senators John Thune, R-S.D., Steve Daines, R-Montana, and Angus King, I-Maine, and co-sponsored by Senators Richard Burr, R-N.C. and Chris Van Hollen, D-Maryland. This legislation – the Tax Filing Relief for America Act – proposed extending the tax filing deadline to July 15 to provide taxpayers, along with their preparers, extra time to file their taxes without filing for an extension request. The Senate Republicans’ proposal for a massive emergency coronavirus stimulus bill, released Thursday night, also included a proposed extension of the tax filing deadline to July 15.
Kreischer Miller is monitoring the news arising from the COVID-19 pandemic, and we will continue to provide important updates. As always, if you have any questions or would like to discuss your individual tax situation, please don’t hesitate to contact your Kreischer Miller tax professional or any member of our Tax Strategies team.
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