The IRS postpones the 15 April tax payment deadline by 90 days for millions of individuals
On 17 March 2020 the IRS issued Notice 2020-17 to announce that the 15 April deadline to pay taxes owed for many individuals and businesses is to be pushed 90 days forward to 15 July. This announcement applies to the payment of income taxes only and not to the actual filing of tax returns. Therefore, individuals and businesses are still required to file their federal returns by 15 April or request an extension.
Application to individual and corporate taxpayers:
The IRS postpones the 15 April tax deadline by 90 days for individuals who owe $1 million or less and corporations that owe $10 million or less with respect to tax year 2019. Taxpayers with a tax liability in excess of these thresholds are expected to make payments as usual. The relief applies to income tax and as well as self-employment tax, but not to any other types of tax.
Estimated Tax Payments:
At this stage it is clear that the relief applies to both 2019 income tax balance due as well as to the 2020 1st quarterly installment payment which is also due on 15 April. However, there is no specific guidance that the 90-day delay applies to the 2020 2nd quarterly installment payment which is due on 15 June.
State tax conformity:
It is expected that most States will conform to the federal legislation. However, currently only a handful of States have actually announced their position. The American Institute of Certified Public Accountants (AICPA) is actively monitoring the States’ formal position on conformity. An up to date chart detailing each individual state’s position can be found here.
To keep up to date with the latest tax news and for more useful resources follow us on social media or check our news feed.