TagTaxes

Treasury Department Extends Tax Payment Deadlines

By: Ferran Arimon & Amanda Wilson

On Tuesday, Treasury Secretary Steven Mnuchin announced that the Treasury Department will extend the April 15 tax payment deadline by 90 days with no penalties or interest.

Taxpayers will have a three-month grace period in which to pay the income taxes owed for 2019. This grace period will apply to federal income taxes due on up to $1 million in tax owed. Corporate filers will also get the same length of time to pay amounts owed for 2019 up to $10 million in tax owed.

To clarify, filers are still required to meet the April 15 deadline if they are expecting a refund or are requesting a six-month extension, but can defer payment for up to 90 days.

The Treasury Department has taken this action as part of a series of actions aimed at financial relief for those businesses and individuals affected by the economic consequences of the coronavirus.

We will continue to monitor regulation aimed toward curbing the economic impact of the coronavirus and make you aware of any financial and taxation relief offered by the government.

Clinton Outlines Her Capital Gains Rate Hike

Magnifying Glass and TaxBy:  Amanda Wilson

Following up on my post from last week, presidential candidate Hillary Clinton has now provided more specific information on her proposed capital gains rates hike.

For high income filers (couples making at least $465,000 a year), the current 20% capital gains tax rate would not be available for investments held only for one year.  Instead, the following rates would apply:

  • 39.6% tax rate for investments held more than 1 year but less than 2 years
  • 36% tax rate for investments held more than 2 years but less than 3 years
  • 32% tax rate for investments held more than 3 years but less than 4 years
  • 28% tax rate for investments held more than 4 years but less than 5 years
  • 24% tax rate for investments held more than 5 years but less than 6 years
  • 20% tax rate for investments held 6 or more years

The existing 3.8% Medicare contribution tax would also continue to apply.

Clinton to Propose Higher Capital Gains Rates

Magnifying Glass and TaxBy:  Amanda Wilson

Hillary Clinton is expected to propose later this week a revamping of capital gains rates.  While the specifics are not yet released, Clinton’s proposal is expected to increase the current maximum capital gains rate for investments held for only two to three years.  Currently, these investments qualify for a 20% tax rate (23.8% where the Medicare contribution tax applies) as long as the taxpayer has held the investment for at least a year.

Stay tuned!

 

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