Treasury Secretary Announced Delay of Tax Payment Deadline

Please visit this blog post for a more recent update regarding tax payment extension as the below information is now outdated: Federal & State Tax Deadlines Extended

On Tuesday, March 17, 2020, in response to the coronavirus (COVID-19), Treasury Secretary Steven Mnuchin made announcements regarding a delay of the tax payment deadline.

On the tax filing payment deadline, Secretary Mnuchin announced that individuals and corporations can delay their tax payments until July 15, 2020. The IRS issued notice 2020-17: Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic on March 18, 2020.

The notice outlined the following:

  • Individuals can delay up to $1 million of their 2019 tax liability due on April 15, 2020. This applies to all individual returns, including self-employed individuals and trusts and estates.
  • Corporations can delay up to $10 million of their 2019 tax liability due on April 15, 2020.
  • If you file your tax return or an extension by April 15, 2020, interest and penalties will be waived during this 90-day period. Interest and penalties will begin accruing on unpaid balances, effective July 16, 2020.
  • The filing deadline is still April 15, 2020 and has not been extended.
  • Estimated tax payments for tax year 2020 that are due on April 15, 2020 are also included in the relief period.
  • This does not apply to payroll tax payments due in April.

Maryland Tax Payment Deadline Extension

Maryland Comptroller, Peter Franchot, announced that Maryland will follow the same 90-day extension. Interest and penalties for late payments will be waived if 2019 tax payments are made by July 15, 2020.  Taxpayers filing a federal extension will continue to be automatically granted an extension on Maryland tax filings.

Pennsylvania has not announced anything as of yet and the deadlines remain the same.

We understand that there is a lot of uncertainty at this point, and we will do our best to continue providing updates as we have them. We encourage you to reach out to your BSSF advisor with any questions or concerns you may have on how this could affect your organization or you as an individual.

Disclaimer: This communication is intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.