- Community Development
Last updated 3-20-2020.
The IRS recently published Notice 2020-17, which offers additional guidance relating to April 15, 2020, tax relief in the wake of the COVID-19 coronavirus outbreak. Key provisions and our insights are summarized below.
Income tax payments of up to $1 million for individuals and $10 million for corporations that were previously due on April 15, 2020, can be deferred for 90 days, which is July 15, 2020.
Amounts in excess of such limits must be timely paid.
The deferral is for federal (not state) income tax payments, including self-employment taxes, for:
Your 2020 Q2 estimate is still due June 15 (for calendar year filers), but your Q1 estimate (and 2019 tax) is due July 15.
This deferral also applies to a calendar-year S corporation’s first installment (typically for any estimated tax due relating to built-in-gains tax).
Taxpayers that have tax liabilities in excess of these amounts must still pay the amount of federal income tax owed that exceeds the noted thresholds.
Note that this is NOT an extension of filing, just payment.
Accordingly, all taxpayers must still either timely file or extend their returns (i.e., returns due April 15, 2020, are still due on such date).
All tax payments (federal, state, local) other than tax payments noted above are required to be timely paid unless relief has been otherwise provided.