Treasury Secretary Steven Mnuchin announced on Friday morning that the filing deadline has been moved from April 15 to July 15 in order to give individuals and businesses more time to gather documents and file their returns without risk of penalties or interest.
The Treasury Secretary also encouraged taxpayers who expect a refund to go ahead and file in order to receive the refund.
Under the previous guidance, the IRS limited the amount of tax that could be deferred. The updated guidance from the IRS provides an unlimited deferral for income tax owed from April 15th to July 15th. This includes the remaining balance owed for 2019 tax as well as first quarter estimated income tax payments.
As we previously reported, there was a disconnect between the delay in making tax payments and the practicality of requiring taxpayers to file their returns (or extensions) by the April deadline. The AICPA and other groups have been successful in pointing this out and obtaining more practical relief.
We will continue to monitor this provision and keep you updated on any changes. If you have any questions about how this will affect you, please contact your Warren Averett advisor or complete this form to have a member of our team reach out to you.