Treasury and IRS Issue Guidance on Deferring Tax Payments Due to COVID-19 Outbreak

Posted by Jonathan Ciccotelli on Mar 18, 2020 7:41:48 PM

Graphs, charts, business table. The workplace of business people.

Following President Donald J. Trump’s emergency declaration pursuant to the Stafford Act, the U.S. Treasury Department and Internal Revenue Service (IRS) today issued guidance (Notice 2020-17) allowing all individual and other non-corporate tax filers to defer up to $1 million of federal income tax (including self-employment tax) payments due on April 15, 2020, until July 15, 2020, without penalties or interest.

The guidance also allows corporate taxpayers a similar deferment of up to $10 million of federal income tax payments that would be due on April 15, 2020, until July 15, 2020, without penalties or interest. This guidance does not change the April 15 filing deadline.

The relief provided is available solely with respect to Federal income tax payments (including tax on self-employment income) due on April 15, 2020, in respect of an affected Taxpayer’s 2019 taxable year and Federal estimated income tax payments (including payments of tax on self-employment income) due on April 15, 2020, for an affected Taxpayer’s 2020 taxable year.

Please contact us with any questions.

Topics: Tax Planning & Strategies , COVID-19

Jonathan Ciccotelli

For 30 years, Jonathan has worked closely with private and public companies in manufacturing, transportation, distribution, construction, and retail under a variety of business structures, including S-corporations, C-corporations, consolidated groups, and limited liability companies.