UPDATED MARCH 23, 2020 (10am EST) – Scroll down to view all resources.
Due to the COVID-19 (coronavirus) pandemic, the landscape of business is changing rapidly. Similarly, federal, state and local tax governments are quickly responding to the need for extensions of time to file or pay tax liabilities due during the pandemic.
MBA has created this COVID-19 Tax Resource Center to keep our clients, staff and business partners informed about:
- changes to tax filing and payment deadlines at the federal, state and local levels due to COVID-19; and
- measures our firm is taking to address safety.
If you have questions or concerns about your taxes and COVID-19, please email us at firstname.lastname@example.org.
Tax Season Continues
MBA has the technology that allows our employees to work from home and has flexible workplace protocols already in place to facilitate seamless compliance with this mandate. The quality of our services and client confidentiality remain our priority as we take precautions to protect the health and wellness of our staff and our community. While our response time may be delayed, our clients should see no interruption in the level of service they deserve and expect.
How Clients Can Help
Expedite the delivery of your outstanding tax information. If you are missing a few items, please expedite the electronic delivery of the information you have as soon as possible.
Our office will remain open until further notice but with limited staff. However, to prepare for possible limited access to mail in the coming weeks, we encourage all clients to send their information electronically. If you have an existing portal, please utilize this folder to upload your tax documents. If you need a portal link to upload documents, please email email@example.com. To reduce the threat of identity theft, please do not send sensitive tax documents without passwords or without encryption.
The Internal Revenue Service pushed the April 15 tax filing and payment deadline to July 15 for many people who have yet to pay their taxes.
Treasury Secretary Steven Mnuchin clarified on March 17, 2020, at a press briefing, his prior comments from March 11, 2020. Despite the national public announcements made by Mr. Mnuchin, no official guidance has been promulgated by the Internal Revenue Service or Treasury Department as of March 17, 2020. As a result, Mnuchin’s comments should not be relied on for tax planning purposes.
Mr. Mnuchin suggested the following:
- Individuals with $1 million or less of individual income tax due on April 15, 2020, will have 90 days till July 15, 2020 to pay. If outstanding tax is paid by this July 15, 2020 due date, no interest or penalty for late payment will apply.
- Corporations with $10 million or less of corporate income tax due on April 15, 2020, will have 90 days till July 15, 2020 to pay. If outstanding tax is paid by this July 15, 2020, due date, no interest or penalty for late payment will apply.
Based on Mr. Mnuchin’s statements at the March 17, 2020 press briefing, taxpayers are still expected to file timely. If additional time is required to complete their return(s), a request of an extension of time to file (Form 4868 or Form 7004) must be filed. Absent official guidance to the contrary, failure to request an extension of time to file, would result in a penalty for late filing.
Mr. Mnuhcin’s comments failed to address important related issues such as how taxpayers should approach the first and second quarter 2020 estimated tax payments that are due before the July 15, 2020 extended payment due date. We hope when official guidance is released this, and other related questions, will be addressed.
Official IRS Guidance
IRS Coronavirus Tax Relief Page – https://www.irs.gov/coronavirus