Notice 2020-17 – Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic

by | Mar 21, 2020

 

Client Communication – March 20, 2020

Secretary Steven Mnuchin announced today that the tax filing deadline will be moved from April 15th to July 15th.  “Americans will have an additional three months to file their taxes…”  This means that KHA will not be preparing tax extensions at this time.  Instead, we will continue our focus on providing client service as business advisors and tax preparers. 

Additionally, on Wednesday, March 18, 2020, the IRS released Notice 2020-17.  A copy of the notice can be accessed here.

This notice extended income tax payments originally due April 15, 2020.  The new due date for these payments will now be July 15, 2020. 

A summary of this notice is as follows:

  • It addresses federal income tax payments that are currently due. 
  • This does not provide relief to federal income tax payments that are already delinquent.
  • For individuals, estates and trusts, this relief applies to tax payments up to $1,000,000.  Any tax due exceeding this threshold is required to be paid on April 15. 
  • For C Corporations, payments up to $10,000,000 can be postponed.
  • First quarter 2020 estimated tax payments are included in this relief.

This notice does not address these important considerations:

  • State income tax payments are not covered by this Notice.  Please reach out to KHA if you have questions regarding any state income tax payments.
  • Congress is also considering legislation that could potentially delay the payment due date for second quarter payments due June 15, 2020.

As your trusted advisors, we are committed to keeping you well-informed with any new legislation passed by Congress as well as any new pronouncements by the Department of Treasury that may affect you.  

 

Growing your Business Through Mergers and Acquisitions

The business world is consolidating rapidly and companies of all sizes are looking to increase their size, power, and efficiency through merger and acquisition (M&A) activity. Learn how a merger or acquisition may help your company grow quickly and efficiently.

Estate planning: Five ways to avoid probate

Estate planning enables you to specify what happens with your assets after death or incapacitation. While every situation is unique, individuals often create estate plans that minimize the need for probate. Probate is the legal process of validating a will and...

Is a Roth IRA Conversion Right for You?

Should I convert my retirement plan to a Roth IRA? It's an important question worth considering. Roth vs. Traditional: What's the Difference?  Taxes now or taxes later. Simply put, that is the main difference between a Roth and Traditional IRA.  Contributions to a...

Inflation and the middle market

The economic growth and emboldened labor market of the past year require a different policy response than the previous two business cycles.

Business Owners: IRS Issues Updated K-2 and K-3 Requirements

February 16, 2022 – The IRS has updated guidance on additional exceptions to the new K-2 and K-3 filing requirements. See FAQ #15 found here. In late 2021, the IRS added new schedules K-2 and K-3 for tax year 2021 for partnerships and S corporations (flow-through...

Family office dream team

An effective family office requires the right mix of internal and external capabilities to balance best-in-cost with best-in-class.