Tax Filing and Payment Deadlines Extension Announced
We want to provide our clients with an update on the IRS announcement regarding tax filing and payment requirements.
The IRS has moved the national income tax filing day to July 15, three months after the normal deadline for Americans to send in their returns. Treasury Department Secretary Mnuchin announced the move, one of the latest measures by the Trump administration resulting from the fallout of the coronavirus pandemic. President Trump ordered the extension to give “all taxpayers and businesses” more time to file returns and make tax payments “without interest or penalties,” according to the Treasury Secretary.
Many individual states already had extended their own tax filing deadlines to various dates to give people relief from the financial fallout of the coronavirus outbreak, which has shuttered businesses nationwide and led to large-scale layoffs. See here for state by state guidance.
A proposal to extend the federal filing deadline to July was included in the Senate’s coronavirus economic stimulus bill, which was released Thursday by Majority Leader Mitch McConnell, R-Ky. That proposed relief package calls for new federal spending that could top $1 trillion. Earlier this week, the Treasury Department released guidance that would have pushed back only the deadline for making federal tax payments — not for filing tax returns — to July 15.
As of March 13, the Internal Revenue Service had issued 59.2 million refunds out of the 76.2 million million individual income tax returns it had received, or 77.7% of the total number of returns filed by that date.
We will continue to provide updates as the government issues statements that may impact our clients. As always, your Boston Private team is here to support you. If you have questions or concerns, please contact your relationship manager or our Concierge Desk at (888) 322-2120.