Tax Payment Relief on Account of Coronavirus
Tax Payment Relief on Account of Coronavirus
The Treasury Department and IRS are extending the due date for Federal income tax payments due April 15, 2020 until July 15, 2020. This relief includes tax due for 2019, and also includes estimated tax payments for tax year 2020 that are due on April 15, 2020. Please note, the tax return filing deadline has NOT been extended. A tax return or valid extension must still be filed by April 15, 2020 in order to avoid late filing penalties.
The relief is for payments due of up to $10 million for corporations and up to $1 million for individuals and other unincorporated entities. The relief also applies to trusts and estates.
Associated interest, additions to tax, and penalties for late payment up to the deferred amount will also be suspended until July 15, 2020. Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020. If you file your tax return or request an extension of time to file by April 15, 2020, you will automatically avoid interest and penalties on the taxes due on April 15th (up to the maximum deferral amount) if paid by July 15th.
The IRS established a special webpage on IRS.gov/coronavirus to include all of the available tax-related information. This page will be updated as more information is available.
It is important to note that this relief does not apply to state or local income tax payments. Relief, if any, allowed by states or municipalities in which you owe tax will be at the discretion of the respective states and municipalities.