As you have probably heard, the IRS has granted an automatic extension to the payment due datefor individuals and corporations. This extension now allows any individual who owes less than $1 million or any corporation that owes less than $10 million to pay the tax owed by July 15th without incurring any late payment penalty or interest. These payments would have been due on April 15th, the due date for their returns.
This extension does not currently extend a taxpayers time to file a tax return. For an extension of time to file, the taxpayer or entity would need to file the appropriate extension with the IRS by April 15th. Additionally, taxpayers that owe more than $1 million and corporations who owe over $10 million are still be required to estimate and pay their liability by the original April 15th due date. As changes to these deadlines and other tax requirements related to the Coronavirus occur you can monitor the updates at https://www.irs.gov/coronavirus.
Important to note, while many states are working on similar payment and filing relief, many, including Pennsylvania, have yet to supply any update. Barring any relief from the states, they will begin to accrue penalty and interest in the traditional manner, beginning on April 15th. We will be monitoring the developments from each state and will provide updates as they become available. You may also monitor the Pennsylvania state website for updates to tax filing and payment relief efforts at www.revenue.pa.gov.
If you have any questions on this matter, your tax advisors at McClintock and Associates are available to answer any questions you may have.
