This follow up is to keep you as up to date as possible on tax changes emerging as a result of COVID-19.

IRS issued Notice 2020-17 clarifying Secretary Mnuchin’s comments. The IRS is allowing taxpayers to postpone income tax payments due on April 15^th until July 15^th. Here are the important points:

• Eligible payments would include the 2019 balance due as well as first quarter 2020 estimated tax payments.
• Individual taxpayers can defer payment of up to $1M regardless of filing status.
• C corporations can defer payment of up to $10M.
• Penalties and interest will not be calculated on amounts up to the thresholds until July 16th.
• Tax payments made for April 15^th in excess of those thresholds are subject to penalty and interest from April 15^th as normal.
• This deferral only applies to Federal income taxes, including self-employment tax. It does not apply to any other type of tax due such as payroll tax deposits.
• Tax return due dates are NOT being extended. 1040s are still due 4/15.

As it relates to the tax situation closer to home, I serve on a committee of The Ohio Society of CPAs which has made recommendations to Governor DeWine regarding Ohio’s approach to extending the state and local income tax deadlines.  We hope to receive formal guidance from the governor soon, and we will share that as soon as it is available.

Please contact your HW&Co. tax professional with any questions. 

David Reape, CPA

Principal, Director of Tax Services