In response to the on-going Coronavirus (COVID-19) pandemic, the President issued an emergency declaration to provide relief from the April 15 tax deadline; the Secretary of Treasury has determined that any person with Federal income tax due for the 2019 tax year is considered an “affected taxpayer.” On March 18, The IRS issued Notice 2020-17 and provided details on payment deferral. The date for payments due April 15, 2020 is postponed to July 15, 2020 and applies to the first $1 million or $10 million of payments due for individuals and corporations, respectively. Additional clarifications:
- The April 15, 2020 filing due date for individual tax returns remains the same
- Tax payment relief is solely for payments due April 15, 2020 – this includes federal income tax payments for the 2019 tax year and first quarter 2020 estimated tax payments for individuals and certain trusts and estates (estimated tax payment relief does NOT apply to corporate taxpayers or tax-exempt organizations)
- As a part of this relief, interest, penalties, and additions to tax for failure to pay, will be disregarded
- Guidance from the states is forthcoming and will be communicated once received
KPM’s tax team is monitoring this evolving situation for further guidance from the IRS in addition to details on how states will now respond. Questions? Contact your KPM advisor.