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IRS Extend Income Tax Payment Deadline Due to Coronavirus

(03/19/2020) The Treasury Department and IRS are extending the due date for the payment of Federal income taxes otherwise due on April 15, 2020, until July 15, 2020, as a result of the ongoing Coronavirus (COVID-19) emergency. The extension is available to all taxpayer and automatic. Taxpayers do not need to file any additional forms or contact the IRS to qualify for the extension. The filing deadline for tax returns remains April 15, 2020, and the relief only applies to the payment of Federal income taxes. Penalties and interest on any remaining unpaid balance will begin to accrue on July 16, 2020.

Dollar Limits

The due date for making Federal income tax payment otherwise due April 15, 2020, for any taxpayer is automatically extended until July 15, 2020. The extension is limited to a maximum applicable amount:

  • up to $1 million for individuals, regardless of filing status, and other unincorporated entities such as trust and estates; and
  • up to $10 million for each C corporation that does not join in filing a consolidated return or for each consolidated group.

Federal Income Tax Payments Only

The relief is available for Federal income tax payments, including payments of tax on self-employment income, otherwise due on April 15, 2020. Thus, it applies to the payment of Federal income taxes for the 2019 tax year, as well estimated income tax payments for the 2020 tax year that are due on April 15, 2020.

The extension is not available for the payment or deposit of any other type of Federal tax. It also does not extend the time for filing any income tax or information return otherwise due on April 15, 2020. The IRS has reminded taxpayers that if the April 15, 2020, filing deadline cannot be met, they are eligible to request a six-month extension to file an income tax return. However, taxpayers do not need to request an extension to file to receive the automatic extension for the payment of Federal income taxes otherwise due on April 15, 2020.

As of now we are unaware of any States which are extending the time for payment.

We will continue to keep you informed as we are continuously monitoring updates surrounding COVID-19.

If you have any questions, as always, please do not hesitate to call or email.

Mike, Katie & Marc

Topics: taxes, Accounting, BTR, Coronavirus, COVID-19, IRS Updates, pandemic, Tax Deadline