UPDATED March 31, 2020 — The U.S. Treasury Department and Internal Revenue Service (IRS) has issued guidance allowing all individual and other non-corporate tax filers to defer up to $1 million of federal income tax (including self-employment tax) payments due on April 15, 2020, until July 15, 2020, without penalties or interest. Corporate taxpayers are allowed a similar deferral of up to $10 million of federal income tax payments that would be due on April 15, 2020, until July 15, 2020, without penalties or interest.
“Americans should file their tax returns by April 15 because many will receive a refund. Those filing will be able to take advantage of their refunds sooner,” said Treasury Secretary Steven T. Mnuchin. “This deferment allows those who owe a payment to the IRS to defer the payment until July 15 without interest or penalties. Treasury and IRS are ensuring that hardworking Americans and businesses have additional liquidity for the next several months.”
The IRS estimates this tax postponement will leave $300 billion of additional liquidity in the economy for the near term.
Given the IRS extension, the North Carolina Department of Revenue automatically extended the time to file State income and franchise tax returns originally due on April 15, 2020 to July 15, 2020. The extension applies to income and franchise tax returns originally due on April 15, 2020, from individuals, corporations, partnerships, trusts, and estates. And on March 31, the state also announced relief from the following penalties for failing to obtain a license, to file a return, or to pay taxes. The Department will not asses penalties for failure to obtain a license, failure to file a return, or failure to pay a tax that is due on March 15, 2020 through July 15, 2020, if the corresponding license is obtained, return is filed, or tax is paid on or before July 15, 2020. Read all the details here.
If you have good information or updates to add to this page, or if you have questions the Chamber can help you answer, please email Interim Executive Director Lisa V. Gray today. Stay safe please!