IRS Formal Announcement: Modifications, Additions, Confirmations

March 19, 2020

IRS Formal Announcement: Modifications, Additions, Confirmations _ Coronavirus March 19 2020

Late on March 18, the IRS released Notice 2020-17 containing details about the income tax payment extension previously announced by Treasury Secretary Mnuchin. The Notice clarifies and expands the scope and nature of the payment extension as previously understood.

  • All taxpayers with Federal income tax payments due on April 15, 2020 are granted an automatic payment extension until July 15, 2020, and no penalties or interest will accrue during this period.
  • Affected C corporations are granted this relief for amounts owed up to $10 million.
  • All other taxpayers, including trusts and estates, are granted this relief for amounts owed up to $1 million.
  • The relief is solely for income and self-employment tax payments; other taxes such as payroll taxes must continue to be remitted timely in order to avoid penalties and interest.
  • The relief also applies to first quarter 2020 estimated income (and self-employment) tax payments, as those are also typically due April 15.

The deadline for filing a tax return is still April 15. Taxpayers that need more time to ensure their balance due is accurate may wish to obtain an extension. Extensions still need to be filed by April 15, but the associated balance due is postponed until July 15. 

Keep in mind that many states, including North Carolina, have not yet provided payment relief beyond April 15.  Also, the American Institute of CPAs and other organizations continue to press the IRS to also extend the federal  filing deadline.

JPS will continue to monitor sources for additional relief and guidance and provide updates.

Stay updated with JPS regarding your tax & financial positioning. And, as always, feel free to contact your JPS team to assist you.

www.jpspa.com

Asheville               Boone                      Marion
828-254-2374       828-262-0997           828-652-7044

About JPS:

Johnson Price Sprinkle PA is a 60+ year old accounting firm providing small to middle market businesses with tax, business consulting, audit, and technology solution services. With offices in Asheville, Boone, and Marion, NC, our CPAs and JPS team strive to provide personal service alongside technical expertise resulting in our clients’ long-term financial success. We also invest time and energy in our community, taking pride in doing what we can to make Western North Carolina a better place.  JPS Mission: To Be Greater by positively impacting our Clients, People, Community and Profession.