UPDATED: Relief for Taxpayers Affected by Ongoing Coronavirus Pandemic
by Mandy Hicks
UPDATE: Tax Day now July 15: Treasury, IRS Extend Filing Deadline and Federal Tax Payments Regardless of Amount Owed
The deadline to file taxes has now been updated to July 15th (previously individuals and corporations still had to file or file an extension by April 15th) and payments regardless of amount owed are postponed to July 15th as well (previously had to be under $1 million owed for individuals and $10 million for corporations).
On March 13, 2020, the President of the United States issued an emergency declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act in response to the ongoing Coronavirus Disease 2019 (COVID-19) pandemic (Emergency Declaration).
In response, the IRS has issued Notice 2020-17 postponing tax payments for all individuals who owe less than $1 million (regardless of filing status) until July 15th. Relief is applicable to both income tax payments due on April 15, 2020 for the 2019 tax year and estimated income tax payments for the 2020 tax year due on the same date. A tax return or extension still needs to be filed by April 15th, but no payment is required to be made. There will be no interest or penalty added to the tax owed between April 15th and July 15th; interest and penalties will begin to accrue on July 16th.
Corporations who use the calendar year for tax purposes are also eligible for postponement if they owe under $10 million. Consolidation groups have to meet this eligibility as a group. Trusts and estates are considered individuals under the notice. The postponement only applies to income tax, not any other kind of federal tax.
For questions related to this update or other legal tax issues, call 270-781-6500.