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Tax Filing & Payment Deadline Update

Filed under:

Construction, Dental, Family Business, Firm News, Healthcare, Private Companies, Small Business Services, Tax Strategies

Updated: 3/21/20, 4:00PM PST

During a White House press conference on Tuesday, March 17th, Treasury Secretary Steven Mnuchin announced that due to the coronavirus pandemic, the IRS will allow for a 90-day automatic extension of time for payment of any 2019 tax due without assessing additional interest or penalties. The following day, the IRS issued an official notice confirming the relief.

On Friday, March 20th, Secretary Mnuchin publicly announced via Twitter that the overall filing deadline has also been extended to July 15th for all Americans. As of this writing, this tweet is the only official notice of this change.

This means that individuals now have until July 15th to file their taxes and pay any 2019 balance due without filing an extension beforehand.

The IRS has also announced that the first quarter estimate for 2020, which would normally be due April 15th, can also be delayed to July 15th without penalty. It should be noted that there was no delay announced for the second quarter estimate, which is due June 15th.

This extension only applies to the individual and corporate income tax deadline ofApril 15th. There is no extension for the April 15th deadline to fund IRA or HSA contributions, and no extension for depositing payroll taxes or any other type of taxes.

If you do not file your return until after July 15th, and you owe taxes for 2019, you will still owe interest and penalties but they will only be calculated from July 16th to the date that you file. An extension can still be filed, but the IRS has not clarified whether a six-month extension of time will be available from July 15th to January 15th, 2021, or whether the normal extended due date of October 15th will still apply.

The Oregon Department of Revenue has not directly responded other than a statement that they are “investigating options for relief.” It is almost certain that they will allow the same due date and payment extension to July 15th, but less certain that they will allow for delays in the payment of 2020 estimates.

Please know that if you are a client of Jones & Roth, we have already filed an extension of your individual return for your protection, and if you have already brought your tax information in, we remain committed to completing your taxes and delivering them to you in a timely manner, allowing you to make the decision about whether you need the extra time to make the payment of any tax due.

We still encourage all clients to gather and provide their tax information as soon as you’re able through whatever means you are comfortable with.

This is a developing story and we will continue to update this post as more information is released.

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