The global effects of the corona virus pandemic are far-reaching, for businesses around the world and of course for local businesses in the Seattle area. James Russell PLLC is committed to helping our clients during this uncertain time. One of the first effects that we are anticipating is an adjustment of federal tax deadlines. It is expected the Treasury Department and the IRS will announce this week an extension of the April 15th tax deadline by as much as 90 days and include a waiver of penalties and interest for most taxpayers.
The Treasury and IRS are very much aware that March 16th is the tax deadline for most businesses. They have indicated they will be generous in determine reasonable cause abatement of any penalties for taxpayers and tax preparers unable to file in a timely manner.
In a letter sent to IRS Commissioner Charles Rettig on Friday, the Reps. Josh Gottheimer (D-N.J.) and Paul Mitchell (R-Mich.) argued that additional time should be provided to help mitigate the impact the virus is having on local communities.
“We are writing today to request that the Internal Revenue Service (IRS) extend the deadline for tax filings for individual and business filers by ninety days, from the current date of April 15, 2020, until June 15, 2020,” they wrote. “This request is in direct response to the impact that the novel Coronavirus (COVID-19) is having on our local businesses and communities.”
Trump said during an Oval Office address on Wednesday that he would direct the Treasury Department to “defer tax payments, without interest or penalties, for certain individuals and businesses negatively impacted” by the coronavirus.
The administration has said it intends to allow individuals and businesses to defer tax filing and tax payments, which could lift some pressure off the IRS by spreading the agency’s processing work out over several more months.
James Russell PLLC will continue to post updates as we receive more information impacting the current tax filing season. Contact us if you’d like to discuss your accounting needs today.