In Response to COVID-19: House & Senate Approve $2 Trillion Economic Rescue Package; Tax Extensions Clarified
In an effort to rush sweeping aid to businesses and workers, lawmakers reached agreement on another relief bill that includes several economic incentives, as well as additional tax relief provisions. The details of the $2 trillion stimulus package are still being finalized, but we will keep you informed on the details as they are released.
UPDATE: Tax Deadline & Payment Delays
The IRS has provided further guidance on the postponement of the tax filing and payment deadline from April 15 to July 15. A few key items to note:
- The postponement only applies to income tax returns and liabilities. Gift and estate tax returns, payroll and excise tax returns/payments, etc. are still due April 15.
- Currently, no filing relief is available for other returns due on dates other than April 15
- No postponement is available for the returns which were due March 16th
- No postponement is available for other returns due after April 15 such as Forms 990-T due May 15
- Certain information returns such as Forms 5471 and 5472 related to foreign corporation ownership are still due April 15.
- For postponement of tax payments, there is no longer a limitation on the amount permitted to be deferred to July 15. Earlier guidance had limited the deferral to $1 million for individuals and $10 million for corporations.
- IRA contributions, HSA contributions and most other amounts otherwise due by the filing of the return are now due July 15.
- For returns originally due 4/15 for which an extension is filed, the extended due date remains October 15.
- No extension is provided for the due date of 2016 amended returns which must be filed by April 15, 2020.
State guidance continues to unfold. Ohio has legislation pending (expected to be finalized soon) which will mirror the federal relief and extend filing/payment due dates for state, municipal and school district income tax returns.
We continue to monitor the rapidly changing legislation landscape and will keep you updated as they develop.
Stay informed on all our COVID-19 updates here.
John E. Jenkins?>
Theodore A. Wagner?>
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