At Catalyst, we have a team of accountants and trusted advisors that specialize in U.S. and Cross Border Tax in Calgary. As we continue to update on the COVID-19 situation as it relates to Canadians and their taxes, we are also monitoring the situation south of the border to keep our US tax clients apprised.
On March 20th, Treasury Secretary Steven Mnuchin announced that the federal tax filing deadline would be moved from April 15th to July 15th.
He had previously announced that the payment deadline would be moved from April 15th to July 15th for individuals, estates and trusts owing payments up to $1 million and for corporations owing up to $10 million of income taxes. The IRS since released Notice 2020-17 providing guidance on the deferral of federal income tax payments until July 15th.
However, with this new announcement, all individuals, estates, trusts and businesses can also defer filing income tax returns and making ALL federal income tax payment, regardless of amount, until July 15th.
The extension will be automatic, with no action required by the taxpayer.
Taxpayers are still allowed to file a “normal” extension by April 15th, which extends the filing deadline to October 15th, and still allows for the deferral of tax payments to July 15th.
Mnuchin also encouraged those who expect to have tax refunds to file sooner.
Note that the extension only applies to federal income taxes. States will need to issue their own guidance if they plan on extending return and payment due dates as well. So far, a limited number of states have extended their filing and payment deadlines.
Please reach out if you have any questions at firstname.lastname@example.org, and continue to send us your tax information.