The United States Treasury and the IRS confirmed today that due to the Coronavirus pandemic individuals and businesses will be allowed to defer their 2019 tax payments for up to 90 days (ie, from April 15, 2020 to July 15, 2020). The deferred payment is automatic and the deferred payments will be interest-free and penalty free. Individuals, including pass-through entities such as S-Corps, partnerships, limited liability companies and sole proprietorships, which pay taxes through their owners' tax returns, are allowed to defer up to $1 million in tax payments to the federal government. Corporations can defer up to $10 million in tax payments. While the federal tax return filing deadline remains April 15, 2020, the standard extension to October 15, 2020 remains available. We are monitoring whether various states will follow and will keep you updated on the issue.
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