Yesterday RINA reported that Treasury Secretary Steve Mnuchin announced in a press conference that individuals and corporations can delay their 2019 tax payments for 90 days due to the coronavirus pandemic. Today the IRS issued a notice which makes the relief official and provides additional information.
The IRS did not change the due date for filing income tax returns. The due date for filing calendar year-end individual and corporate income taxes is still April 15, 2020.
[See March 20, 2020 Alert for update on the tax filing deadline.]
The deadline to pay the balance due for 2019 and the first quarter 2020 estimated payments has been delayed to July 15, 2020 for individuals and many businesses.
During the period from April 15 – July 15, the IRS will not charge interest or penalties on the eligible postponed payments.
Individuals can defer up to $1 million in tax payments for 90 days from the April 15 deadline. The limit of $1 million is regardless of filing status. That is, the maximum postponed payment amount is $1 million for a single individual and for married individuals filing a joint return.
Each consolidated group (as defined in §1.1502-1) or each C corporation that does not join in filing a consolidated return can defer up to $10 million in payments for 90 days.
The IRS notice states that estimated tax payments due April 15, 2020 may also be delayed without interest or penalty to July 15th. However, the total delayed payments – including both 2019 taxes and estimated 2020 taxes, is $1 million for individuals and $10 million for the specified businesses.
The IRS provided no extension for the filing of any tax return or information return. [See March 20, 2020 Alert for update on tax deadline.] The IRS did not extend the payment or deposit due date for any other type of federal tax. This is only for income taxes.
RINA professionals will continue to work with clients to file either a return or an extension by the April 15th deadline.