The IRS announced that individuals and businesses may postpone federal income tax payments due April 15, 2020, until July 15, 2020, but the extension does not apply to the filing of federal tax returns.
In response to the President’s declaration of a national emergency under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, on March 18, 2020, the IRS issued Notice 2020-17 (the “Notice”), available here, providing the following relief from certain Federal income tax payment deadlines:
- The Notice applies to any taxpayer with a Federal income tax payment due April 15, 2020. The due date for making Federal income tax payments is postponed until July 15, 2020.
- The postponement is limited to $10 million for corporations and $1 million for individuals and other taxpayers.
- The relief provided by the Notice is available solely with respect to Federal income tax payments (including payments of tax on self-employment income) due on April 15, 2020, in respect of an taxpayer’s 2019 taxable year, and Federal estimated income tax payments (including payments of tax on self-employment income) due on April 15, 2020, for a taxpayer’s 2020 taxable year.
- Importantly, no extension is provided in the Notice for the payment or deposit of any other type of Federal tax, or for the filing of any tax return or information return.
- Taxpayers who want an extension of time to file their federal tax returns still need to file the appropriate form (through the normal processes) for obtaining extensions no later than April 15, 2020.
It should be noted that the Notice is silent on those taxpayers who had Federal income tax payments due on March 16, 2020, such as partnerships and S corporations. In addition, several states have followed the lead of the IRS in issuing certain relief for taxpayers. As of the time of this publication, the State of Nebraska has not issued any guidance or other relief for taxpayers.
Mark L. Brasee
Paul J. Halbur
This article has been prepared for general information purposes and (1) does not create or constitute an attorney-client relationship, (2) is not intended as a solicitation, (3) is not intended to convey or constitute legal advice, and (4) is not a substitute for obtaining legal advice from a qualified attorney. Always seek professional counsel prior to taking action.