As reported in the press, the Department of the Treasury has postponed the time period for making certain federal income tax payments that are due on April 15, 2020.
Pursuant to Notice 2020-17, the due date for making certain federal income tax payments is now postponed until July 15, 2020. The Federal tax payments that are eligible for postponement are:
- Federal income tax payments, including payments of tax on self-employment income, in respect of the 2019 tax year; and
- Federal estimated income tax payments, including payments of tax on self-employment income, due on April 15, 2020 in respect of the 2020 tax year.
The maximum amount for which payment may be deferred is:
- $10 million for each consolidated group or C corporation that does not file a consolidated return; and
- $1 million for all other taxpayers, regardless of filing status (i.e., the same limitation applies for single taxpayers filing individual returns, and married taxpayers filing a joint return).
Please note that the maximum deferral amount applies to the aggregate of all amounts due on April 15, 2020. Therefore, non-corporate taxpayers can only defer $1 million of their combined remaining 2019 tax liability and first installment of 2020 estimated tax.
Please note that no extension is provided for:
- The payment or deposit of any other tax; or
- The filing of any tax return or information return.
Based on the above, individual taxpayers should either file their 2019 tax return by April 15, 2020, or request an automatic six month extension by that date.
Also, please note that the Treasury Notice does not expressly provide for the postponement of the time to make estimated income tax installment payments that are due on June 15, 2020.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
