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Legal Update

Mar 20, 2020

Due Date for Paying Certain Federal Income Taxes Deferred Until July 15, 2020

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Seyfarth Synopsis: To provide relief to taxpayers affected by the 2019 Novel Coronavirus disease (“COVID-19”), the U.S. Treasury Department and Internal Revenue Service deferred the April 15, 2020 due date for paying certain federal income taxes until July 15, 2020. An extension of the due date for filing federal income tax returns is expected to follow.

Following issuance by the President of the United States of an emergency declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, the U.S. Treasury Department and Internal Revenue Service issued guidance on March 18, 2020, providing for deferral of the April 15, 2020 due date for paying federal income taxes until July 15, 2020, without incurring any interest, penalty, or addition to tax for failure to pay the postponed federal income taxes penalty. The deferral applies to affected taxpayers’ (i) 2019 taxable year’s federal income tax payments (including payments of tax on self-employment income) due on April 15, 2020, and (ii) 2020 taxable year’s federal estimated income tax payments (including payments of tax on self-employment income) due on April 15, 2020, in the aggregate amount of up to $10,000,000 in the case of either a C corporation or a group of C corporations filing a consolidated tax return, and up to $1,000,000 in the case of individuals and all other affected taxpayers regardless of their filing status.

The guidance does not provide for an extension of the due date for filing tax or information returns. However, in a tweet made on March 20, 2020, the Secretary of Treasury declared he is acting to extend the filing due date to July 15, 2020, as well.

It should be noted that federal non-income and state and local tax-related deadlines are not automatically affected by the above relief.

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