BSB Tax Update FB

Amid the COVID-19 pandemic, The U. S. Treasury Department and Internal Revenue Service (IRS) will provide some relief to taxpayers.  

On March 20, Treasury Secretary Steven Mnuchin announced on Twitter that the IRS will extend the federal tax filing deadline from April 15, 2020 to July 15, 2020.

This follows guidance released by the IRS which extended payment deadlines, but did not include an extension of the federal filing deadline. On March 18, the IRS announced:

  • All individual and non-corporate federal tax payments (including self-employment tax) of up to $1 million can be deferred until July 15, 2020 with no interest or penalties.
  • Corporate federal tax payments of up to $10 million can also be deferred until July 15, 2020 with no interest or penalties.

Although the federal tax deadline has now been extended, Treasury Secretary Mnuchin has urged Americans to file by the original deadline of April 15 in order to take advantage of any tax refunds they may receive. The tax refunds, as well as the additional liquidity made available by the extended deadline, are expected to add $300 billion of funds into the economy during the next few months.

In addition to the federal extension, many states are providing tax relief for state income taxes. The Virginia Department of Taxation announced on March 20 that it has extended certain state income tax payment deadlines to June 1, 2020, at the request of Governor Ralph Northum. Filing deadlines, including the May 1 individual income tax return deadline, will remain the same and interest will be charged on payments made after May 1. For more information and updates about Virginia tax, visit tax.virginia.gov.  

While the information on the extension of the federal tax deadline has been widely reported, based on Secretary Mnuchin’s tweet, formal guidance has not yet been released.

We will continue to provide further information as it becomes available.

The professionals at BSB are here to answer any questions you may have. Please reach out to us today!