The novel coronavirus (COVID-19) has caused a significant interruption to our country over the last few weeks. On March 18, the US Treasury issued Notice 2020-17 which provides new measures to assist taxpayers with their upcoming April 15 tax payments.
Taxpayers may now defer up to $1,000,000 of their Federal tax liability, originally due on April 15, until July 15 without interest or penalties. This applies to both the 2019 tax year payments due as well as the first quarter of 2020 estimated tax payments. Similar relief has been granted to C corporations by enabling the deferral of tax payments up to $10,000,000.
While this guidance allows the deferral of payment, it does not automatically grant an extension of time to file your 2019 tax returns. Failure to complete an extension of time to file your tax return may still subject you to significant penalties. This guidance does not apply to tax payments at the state or local level. We expect each state and local tax authority to make announcements on their own measures in the coming days.
Fairman Financial will continue to monitor and provide updates as more information becomes available. If you have questions about your April 15 payment or filing obligations, we would be happy to discuss them with you. Please reach out to your Fairman Financial professional or contact our office at 610-889-7300 at your earliest convenience.
Sincerely,
Roy M. Fairman, CPA/PFS, Managing Partner
Marianne Inforzato, CFP®, Partner
Shawn Kindt, CPA/PFS, CFP®, Partner
Doug Morisoli, CPA, CFA, CFP®, Partner
