COVID-19 Tax Update #2

I hope you are all doing well and being safe. 

We have some more clarity around the federal tax payment deferral. There is not an extension of time to file returns.  If your return is not ready to be filed by April 15th an extension will still need to be filed as normal.  There is a deferral for paying your taxes until July 15th as previously mentioned.  This includes amounts for your first and second quarter estimated taxes for 2020. 

Individuals can defer payment up to $1,000,000 and corporations can defer up to $10,000,000.  For example, if you owe $600,000 with your 2019 individual tax return and your 2020 quarterly estimates are $300,000 per quarter, you’ll need to pay $200,000 by June 15th and the remaining $1,000,000 by July 15th.  For most of you these limits won’t come into play.

We’ll also be updating you regarding state taxes today and tomorrow.

For those of you in Washington state, I have included a link to the Washington Department of Revenue website that addresses the relief they are providing.  As always, feel free to call with any questions.

Best,