Federal Tax Payments and the Covid-19 Pandemic
The past week has been full of conflicting news stories regarding the upcoming tax
deadline. As a result we have been receiving many calls regarding the special changes.
On March 13, 2020, the President issued an emergency declaration in response to the ongoing #Coronavirus Disease Pandemic. The emergency declaration instructed the IRS to provide relief from certain deadlines.
The #IRS has extended the deadline to pay a federal income tax balance due. This extension is effective for federal income tax payments that are due on April 15th, 2020. The new deadline is July 15, 2020. While this is relief of payments for your 2019 income tax due, this does not extend your obligation to pay self-employment or estimated tax on April 15, 2020. Additionally, it does not extend your requirement to file the return
This extended period is simply a hold on the calculation of interest and penalty for failure to pay. An important note, this extension only applies to balance dues under $1 million for individuals and $10 million for corporations. Finally, California has already given a similar extension to June 15, 2020.
We are recommending our clients to file their 2019 individual return or their 2019 extension by April 15, 2020 and pay any 2020 estimates following the normal deadline schedule. As far as your 2019 tax payment, you can hold of payment until the new deadlines stated in IRS Notice 2020-17.