IRS Notice - Tax Payment Extension

Date: March 19, 2020

Publication: Tax Update

Of interest to firm clients is the IRS notice authorizing a 90-day extension for payment of income taxes under the COVID-19 declaration of emergency. Please note that this extension applies to payment of tax only, all tax returns are still required to be filed timely or a taxpayer must file a timely extension. For more information please contact any member of our Tax team.

  • All taxpayers with income tax due on April 15, 2020 are considered affected taxpayers
  • Corporate taxpayers (or a consolidated group) may defer payment of up to $10 million of tax
  • All other taxpayers may defer payment of up to $1 million of tax (this includes individual taxpayers)
  • All income tax (including payroll) that is due on April 15 is eligible for deferral
    • Includes payments with respect to Tax Year 2019 or estimated tax payments due April 15, 2020 for Tax Year 2020
  • Interest and penalties begin to accrue on July 16, 2020 if tax not paid
  • Interest and penalties begin to accrue after April 15 on amounts of tax due in excess of the above amounts eligible for deferral
  • No extension for any tax returns due, only for payment of income tax