On Wednesday, March 18th, the IRS issued Notice 2020-17, Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic, which allows for an extension of the payment deadline for individuals and corporations for tax federal payments for 90 days. Individuals that owe money on their April 15th tax filing for 2019 taxes or first quarter 2020 estimated taxes may defer up to $1 million without incurring penalties or interest. Consolidated groups or C corporations that do not join in filing a consolidated return may defer up to $10 million.
Notice 2020-17 further stipulates that this action is limited to the payment of federal income taxes and does not affect payroll taxes, estate and gift taxes, or state and local taxes. Please refer to your specific state or local jurisdiction for guidance on non-federal tax payment deadlines.
It is important to note that Notice 2020-17 does not extend the deadline for filing individual taxes. Individual returns remain due on April 15th unless taxpayers file IRS Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, by April 15th to extend individual filings until October 15th in most cases.
Throughout these quickly-changing times, LGT tax professionals are ready to help you. Please call us today at 214-871-7500 or email us at email@example.com if you need assistance. You may also access updated information regarding relief for small businesses by visiting our COVID-19 Financial Updates page here.