Dear clients and friends of Isler CPA,
We wanted to share this information with you quickly as it impacts all of us. Please reach out to your CPA with any questions.
April 15 Tax Payments Deferred for 90 Days for Most Americans
Taxpayers and business owners received a much needed lifeline this week from the Treasury and IRS in response to the Coronavirus outbreak. Individual taxpayers will get a three-month (90 day) extension to pay income taxes they owe for 2019, and first quarter 2020 estimates, typically due on April 15th, but will now have until July 15th, 2020. IRS Pub. 2020-17.
Specifically, the IRS will waive any interest or penalties due on up to $1 million in taxes owed by individuals, and up to $10 million for corporate filers. As expected, this will also be a huge reprieve for pass-thru entities such as S-Corporations and Limited Liability Companies (LLCs). Business owners that owe taxes on their pass-thru income also have an extra 90 days to pay the taxes (up to $1M) without interest or penalties.
However, this doesn’t mean taxpayers can avoid filing their tax return OR an extension by April 15th. The tax return is still due! It’s simply that taxpayers can wait to make payment on a certain amount of taxes for 90 days. Thus, we strongly recommend individuals still at least file an extension by the deadline using IRS Form 4868, if they do not file their tax return. The ‘late filing penalty’ will still apply if a taxpayer doesn’t file their return or extension (a penalty completely separate from this special extension to pay).
Families First Emergency Coronavirus Response Act Passes
The Senate passed the Families First Coronavirus Response Act Wednesday and President Trump signed it shortly thereafter. Here’s a synopsis of what it contains:
- Offer two weeks of paid sick and family leave to many American workers who are in quarantine, helping a family member with COVID-19 or who have children whose schools have closed. Workers will get 100% of their normal salary.
- A total of 12 weeks of paid leave to many of those who have children whose schools have closed. Workers would get about 67% of their normal salary for this period.
- Bolsters unemployment insurance
- Free testing for the coronavirus for those who need it
- Boosts food assistance (SNAP) and federal funding for Medicaid
Supporting Local Restaurants
In an ongoing effort to support businesses hit hardest by the Coronavirus outbreak, Isler CPA is patronizing local Lane County restaurants and ordering employer-provided food during tax season. If you have a recommended local restaurant that has a take-out or delivery options during the next few months, please let us know and we will patronize their food services during this season of restaurant closures.