Important Payment Deadline Updates for Taxpayers

Tax Payment Deferment Until July 15, 2020

On March 17th, Treasury Secretary Steven Mnuchin announced that taxpayers will receive an extra 90 days to pay their federal taxes due to the coronavirus pandemic. This doesn’t delay the filing deadline, only the payment. To file after April 15th, taxpayers will need to file an extension. This relief also applies to the first quarter 2020 estimated payments with a deadline of April 15, 2020.

 

This deferment is for payments up to $1 million for individuals, trusts, and estates and up to $10 million for corporations. Michigan has chosen to follow the IRS’s approach, allowing 90 additional days to pay income taxes owed, but keeping the filing deadline of April 15th. Each state is to determine how they will handle tax filings and payments. Information on other states can be found at the AICPA’s website. Click here for a downloadable chart.

 

Tax Assistance for Michigan Small Businesses

The Michigan Department of Treasury announced effective immediately small businesses that are scheduled to make their monthly sales, use, and withholding tax on March 20th can postpone filing or payment until April 20th. The Treasury Department will waive penalties and interest for 30 days.  The waiver is not available for accelerated sales, use, or withholding tax filers. 

 

Further information on the Treasury providing tax assistance to small businesses due to COVID-19 can be found in SUW Penalty and Interest Waiver Notice.

 

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