March 18, 2020
Nick Thompson, Associate
As a result of the ongoing Coronavirus Disease 2019 (COVID-19), the IRS issued Notice 2020-17 (the “Notice”) extending Federal income tax payment deadlines into the summer for many taxpayers, although it affirmed that the April 15 tax return filing deadline remains in place.
The Secretary of the Treasury has determined that any person with a Federal income tax payment due April 15, 2020, is affected by the COVID-19 pandemic for purposes of the relief described in the Notice.
Notice 2020-17 extends the Federal income tax payment deadline to July 15, with the extension applying to all taxpayers with Federal income tax payments due April 15, up to specified thresholds. Individual taxpayers can postpone up to $1,000,000 in Federal income tax payments, while corporate taxpayers can postpone up to $10,000,000 in income tax payments. The relief provided in the Notice is available solely with respect to Federal income tax payments (including payments of tax on self-employment income) due on April 15, 2020, in respect of an affected taxpayer’s 2019 taxable year, and Federal estimated income tax payments (including payments of tax on self-employment income) due on April 15, 2020, for an affected taxpayer’s 2020 taxable year.
The extension does not apply to other types of Federal taxes or to the filing of Federal tax or information returns, according to the Notice.
Basically – taxpayers are still required to file their Federal income tax returns (or an application for extension) by April 15, but are granted an extension to pay until July 15, 2020.