On March 13, 2020, the President released an emergency declaration instructing the Secretary of the Treasury to give relief to taxpayers impacted by COVID-19.
Here are details of Notice 2020-17, Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic:
- Taxpayers with federal income tax payments due on April 15, 2020 now have until July 15, 2020 to submit their payment. This includes both income tax payments for 2019 and estimated quarterly income tax payments for 2020.
- There is a cap on the payment deferrals: individuals (and married filing jointly) can defer up to $1 million in federal income tax payments; corporations can defer up to $10 million in federal income tax payments.
- There will be no interest assessed or penalties levied for the period of April 15, 2020 to July 15, 2020 on qualifying federal income tax payments.
- Interest and/or penalties will begin to accrue on July 16, 2020 for any federal income tax payments that have yet to be made.
- During the period of April 15, 2020 to July 15, 2020, interest and/or penalties will accrue on any payments above the $1 million for individuals and $10 million for corporations caps that are not made.
Please note: the following items are not extended:
- Any federal payments besides income tax payments due on April 15, 2020
- The filing date of tax returns
- The filing date of information returns
For full details, click here to view a PDF of Notice 2020-17.
We are here to help. If you have any questions, please do not hesitate to reach out to your Pivot CPAs accounting advisor.