IRS guidance on COVID-19 tax relief
March 19, 2020
March 19, 2020
To you - valued SEK client,
SEK is committed to keeping our clients informed with the latest developments surrounding the impact of the current COVID-19 situation on the upcoming tax filing deadlines.
Yesterday, the IRS provided official guidance in IRS Notice 2020-17 to provide clarification on the relief for taxpayers affected by the COVID-19 pandemic.
Under this relief, the due date for Federal income tax payments that are due April 15, 2020 has been extended for 90 days, thus taxpayers can delay payment until July 15, 2020 without interest or penalty.
Individuals can delay tax payments in an aggregate of $1,000,000 regardless of filing status. This amount includes both the amount due for 2019 income tax and the 2020 first quarter Federal estimated income tax payment, as both are ordinarily due April 15, 2020.
C-Corporations can delay Federal income tax payments up to $10,000,000 per consolidated group or for each C-Corporation that is not part of a consolidated filing.
The Notice clarifies earlier uncertainty about the filing deadline. The relief provided under this Notice does NOT extend the return filing deadline beyond April 15, 2020.
We have updated our temporary firm policy to include accepting drop-offs of information at our offices with advance arrangements made with your Client Relationship Manager (CRM). As always, we are available by e-mail or phone consultation. We encourage information to be submitted electronically by utilizing Secure File Exchange accessible by clicking on the Client Access link at www.sek.com. Additionally, you may send information via USPS, UPS, or Fed Ex.
We will continue to update as more information becomes available. Please contact your CRM with any questions or concerns.
Managing Member of the Firm