Updated Guidance from IRS, Treasury Dept., and State of Colorado

Virus Image COVID-19 | Updated Guidance from IRS, Treasury Dept., and State of Colorado | Dalby Wendland & Co. | CPAs Business Advisors | Grand Junction CO | Glenwood Springs CO | Montrose CO The Treasury Department and the Internal Revenue Service issued IRS Notice 2020-18, providing guidance on both filing and payment relief. Here is the latest:

 TAX DEADLINES EXTENDED

  • The new Notice postpones both the filing and payment deadline to July 15, 2020, for income tax returns and income tax payments normally due April 15, 2020.
  • Quarterly estimated income tax payments that are normally due April 15, 2020, are also postponed to July 15, 2020.
  • This relief applies to any “Affected Taxpayer” which is defined as any person with a federal income tax payment or a federal income tax return due April 15, 2020. This includes individuals, trusts, estates, partnerships, associations, companies or corporations.
  • The relief is automatic, no extension forms are required.

PENALTIES & INTEREST SUSPENDED

  • The period April 15, 2020, through July 15, 2020, will be disregarded for purposes of any interest, penalty, or additions to tax for failure to file or failure to pay.
  • Any such interest and penalties, if applicable, will begin to accrue on July 16, 2020.
  • The suspension of interest and penalties is automatic, no forms or requests for relief are required.

NO OTHER TAX FILINGS OR PAYMENTS COVERED

  • The relief provisions only apply to income tax returns and income tax payments (including self-employment taxes).
  • Other information return filings and payments for payroll taxes, state and local sales taxes, property taxes, and other taxes are not covered under Notice 2020-18.

STATE OF COLORADO

  • In his March 20, 2020, press conference, Colorado Governor Polis indicated that the Colorado will follow suit. Although nothing formal has been issued by Colorado Department of Revenue at this time, we expect similar guidance to follow.

WE’LL HELP YOU STAY CONNECTED

We continue to monitor federal, state, and local communications. Additionally, we know it’s important to keep you in the loop. You may also stay up to date on DWC communications by connecting with us via our website blog, Facebook, LinkedIn, Twitter, and our bi-monthly enewsletter. Both the IRS and Dept. of Treasury have set up COVID-19 tax relief and guidance information as well at IRS.gov/coronavirus and treasury.gov/coronavirus.