On Wednesday, March 18, 2020, the Internal Revenue Service issued Notice 2020-17 that outlines the tax payment relief due to the ongoing Coronavirus pandemic. The Notice indicates that individuals and businesses can postpone their 2019 tax payments normally due April 15, 2020 for up to 90 days until July 15, 2020 due to the difficulties presented by the current situation.
The IRS has stated that the tax return filing date remains April 15, 2020, but interest and penalties normally assessed on payments not made by April 15, 2020 will be waived if paid by July 15, 2020. The Notice also indicates that the tax payment relief extends to the first quarter 2020 estimated tax payment also due on April 15, 2020. Individuals can defer payment up to $1 million and corporations can defer up to $10 million in payments otherwise due April 15, 2020. Interest and penalties will be applied to payments made after July 15, 2020. Note that the relief provided by the Notice ONLY applies to personal and corporate income tax payments. It does not apply to any other type of federal tax payment or tax filing at this time.
While we still have questions as to exactly how the relief outlined in this Notice will apply, we hope the IRS will issue additional guidance in due course. This communication represents our current understanding of the IRS’ Coronavirus relief at this time. We will keep you up to date as details develop in this rapidly changing environment.
If you have any questions or concerns, please contact your Maillie LLP representative via phone or email.
We thank you for your understanding and patience as we navigate these unprecedented times together.