In an effort to keep you informed of legislation impacting you as a business owner and taxpayer, we will continue to correspond as matters evolve. Please feel free to reach out to your Cooper Norman point of contact with any questions we can help you navigate.
Yesterday, the IRS provided clarification related to when federal income taxes are due. IRS Notice 2020-17 states the following:
– The payment due date for 2019 federal income taxes AND 2020 Q1 estimated payments has been postponed till July 15th, 2020.
– Despite the extended payment deadline, the filing deadline has not been extended. Consequently, valid extensions must be in place by April 15th. Your Cooper Norman CPA will provide all needed extension assistance.
– Taxpayers owing more than $1,000,000 in 2019 and/or 2020 income tax will need to plan on making a valid extension payment on April 15th. The available postponement amount is $1,000,000.
– No interest or penalty will accrue during the period April 15th to July 15th.
The postponement affects federal taxes only. Many states have yet to provide state-specific guidance. For state tax developments related to the coronavirus outbreak, see the link below:
As previously mentioned, Cooper Norman’s commitment to you has remained unchanged. We are well-equipped to work throughout this crisis with little interruption to project efficiency and completion. Completing your income tax returns, despite the reprieve in payment expectations, would be advisable. This can provide the clarity you need over the next several months to make important personal and business decisions. As CPAs, we have grown accustomed to the long hours January to April generally mandate. To the extent possible, we would appreciate the opportunity to actively serve you during this time. If agreeable, please continue to send us the information needed to file your 2019 income tax returns.
For business owners trying to better understand The Families First Coronavirus Response Act, we have prepared the decision tree found below. With your business and employees in mind, please review the contents of the flowchart. We hope this will provide the much-needed clarification surrounding this specific piece of legislation. The flowchart represents our current understanding of the law and is subject to change as additional clarification is provided.
Click on the graphic to view: