With the influx of news and uncertainty over the last few weeks due to both the Middle Tennessee tornado and coronavirus, we wanted to summarize the changes that the IRS has authorized regarding upcoming tax deadlines. However, please note that the extensions might not be beneficial to all. It is important to consult with your Crosslin tax team member to determine what is best for your situation.
Time Extensions for Tornado Victims
For residents of Davidson, Wilson, and Putnam counties, the IRS has granted filing relief to victims of the recent tornadoes by extending the filing and payment dates for many returns and taxes until July 15, 2020. The relief is automatic for those residing in these three counties; however, it is important to note that it may be better for individuals to stick with the April 15 deadline, especially if a refund is due.
Even with the changes, Crosslin is encouraging our clients affected by the tornado to continue with the mindset that the tax filing deadlines have not changed, and to let us advise you as we deliver returns to you regarding your options and relevant dates. We are also reviewing the returns previously delivered for the purpose of informing clients who have already filed of the new options.
Due to Coronavirus, Tax Filing Deadline Remains but Tax Payments Deadline Deferred
The IRS tax filing deadline remains April 15, 2020 for returns with original due dates on that date.
However, regarding tax payments, the U.S. Treasury Department and IRS issued guidance allowing all individual and other non-corporate tax filers to defer up to $1 million of federal income tax (including self-employment tax) payments due until July 15, 2020, without penalties or interest.
The guidance also allows corporate taxpayers a similar deferment of up to $10 million of federal income tax payments until July 15, 2020, without penalties or interest.
Contact a member of the Crosslin tax team with any questions you may have. We realize it is extremely confusing as this situation continues to unfold. As always, thank you for your business. Please give us a call at (615) 320-5500 with any questions.