On March 18, 2020, the IRS issued Notice 2020-17 announcing the extension of the due date for the payment of federal income taxes due April 15, 2020 until July 15, 2020, with no interest, penalties or additions to tax accruing until July 16, 2020. Taxpayers are still required to file federal income tax returns by April 15, 2020 (unless an extension is requested).
Corporations (or each consolidated group if a consolidated return is filed) may defer payments up to $10 million of federal income tax. All other taxpayers (including individuals) may defer payments of up to $1 million of federal income tax. Any amounts due in excess of the $10 million and $1 million caps will continue to be due April 15, 2020 and will accrue interest and penalties if not paid by the original deadline.
For taxpayers required to make estimated tax payments, this relief provides an additional 91 days to make estimated payments originally due April 15, 2020 (i.e., the first quarter 2020 payments for calendar year taxpayers) without the imposition of any interest or penalties for failure to make sufficient estimated tax payments.
Additionally, Notice 2020-17 provides that no extension is provided for the payment or deposit of any other type of federal tax or the filing of any tax return or information return. It is not clear if any deferral or relief is available for taxpayers that did not satisfy the required estimated tax payments for the prior taxable year.
We will continue to provide updates as future developments and tax related stimulus and incentives emerge.
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