On March 17, 2020, in response to the COVID-19 crisis, the Steve Mnuchin, Treasury Secretary, announced that individuals and corporations can delay their tax payments by 90 days. Specifically, individuals will have the ability to defer up to $1M in payments for 90 days from April 15, 2020 and corporations can defer up to $10M in payments for 90 days. The IRS will not charge interest during that time. This means, if you owe taxes, you won’t have to pay them until July 15, 2020. This is a deferment (not tax forgiveness).
Please note that the filing deadline is still April 15, 2020. Also, if you have estimated tax payments due for the first quarter, those will continue to be due on April 15, 2020.
Finally, for our clients within the State of Colorado, the Colorado Department of Revenue is mirroring the federal deadlines. So all state income taxes to the State of Colorado can also be deferred until July 15, 2020.
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If you’re not sure what next steps to take, contact Doida Law Group at 720-306-1001 to talk things through. Please mention this blog post and we’ll be happy to help.