03/21/2020
On March 18th, The Internal Revenue Service (IRS) announced a 90-day extension of interest and penalties, subject to the following deferral limitations, will be interest- and penalty-free:
Individuals can defer up to $1 million; and
Corporations can defer up to $10 million.
Taxpayers should make every attempt to prepare and submit their 2019 taxes by April 15, 2020
Taxpayers will get a 90-day reprieve to pay, subject to limitations, income taxes they owe for 2019; this includes first quarter estimated payments for 2020
The postponement on payments applies to federal returns
During that three-month deferral period, taxpayers won’t be subject to interest and penalties
State reactions vary by state, check with each state to see if there are any extensions
We are actively involved in monitoring federal and state updates related to filing dates and extensions and are analyzing impact to our product solutions and services
Below are guidelines specifically related to ATX:
You can file federal returns or a federal extension for the April 15th without a software update
Due to specific IRS electronic filing rules, Direct Debit requests with a date after April 15th will be rejected
Please select a non-direct payment option on the “Payment and Refund” tab located on the E-File Info
If the full amount of the federal tax is paid by July 15th, DO NOT enter a payment date on the “Late Filing” tab to avoid any automated late payment penalty and interest calculations
The letter must be modified to reflect the July 15th deadline for payments.
References to first quarter 2020 estimated tax can be altered by entering the extended payment date on the “Record” tab of the ES voucher
Taxpayers will not be subject to penalties and interest for the extended period
Ximena Radrigan
[email protected]
(209) 462-9930
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