The IRS formally issued guidance regarding the government’s emergency response to COVID-19. The guidance allows individuals (including American Expats) and non-corporate filers to defer up to $1 million of tax including self employment tax due until July 15th without penalties or interest. Corporate taxpayers can defer up to $10 million.
The April 15th filing deadline is now extended to July 15th. However if you have a refund due why wait?
Social Security beneficiaries who are not typically required to file tax returns will not need to file an abbreviated tax return to receive an Economic Impact Payment. Instead, payments will be automatically deposited into their bank accounts. More information here
To assist Canadians who may be experiencing hardships during the COVID-19 outbreak, there are a number of programs and changes the Government of Canada has enacted for both Individuals and Businesses under Canada’s Economic Response Plan. For AET’s overview of the Plan click here
To view Canada’s page on this plan you can read the details in the link below…
Also the tax return filing due date will be deferred until June 1, 2020. The Canada Revenue Agency will allow all taxpayers to defer, until after August 31, 2020, the payment of any income tax owed. No interest or penalties will accumulate on these amounts during this period.
Quebec is also supporting Individuals and Businesses in many ways including extending the filing due date for individuals and businesses until June 1, 2020. Here are the details on Quebec’s COVID-19 plan
Many States were caught off guard by the recent Treasury and IRS announcements regarding the extending of the filing deadlines.
Updates on filing deadlines are being announced by States daily.
Here is the latest information we have published by the AICPA. Read the Update
The following are websites with Tax & Business COVID-19 related information.
The following is the Congressional Record from March 25th with the discussion regarding the Tax Stimulus bill for COVID-19.