This afternoon the IRS finally followed up on Secretary of the Treasury’s prior comments about some relief of penalties and interest for the late payment of taxes by releasing IRS Notice 2020-17.
Individuals: Income tax payment deadlines for individual returns, with a due date of April 15, 2020, are being automatically extended until July 15, 2020, for up to $1 million of their 2019 tax due. This payment relief applies to all individual returns, including self-employed individuals, and all entities other than C-Corporations, such as trusts or estates. IRS will automatically provide this relief to taxpayers. Taxpayers do not need to file any additional forms or call the IRS to qualify for this relief.
Corporations: For C Corporations, income tax payment deadlines are being automatically extended until July 15, 2020, for up to $10 million of their 2019 tax due.
This relief also includes estimated tax payments for tax year 2020 that are due on April 15, 2020.
Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020. If you file your tax return or request an extension of time to file by April 15, 2020, you will automatically avoid interest and penalties on the taxes paid by July 15.
If you run a business, this penalty and interest relief does not apply to payroll taxes or excise taxes.
This DOES NOT extend the filing deadlines
The IRS Notice does nothing to change any tax form filing deadlines. Fortunately, there are automatic extensions of time to file available for all individual, corporate, partnership, LLC, gift and estate tax returns in the normal course of things.
If you need any assistance filing an extension do not hesitate to call us at (831) 758-5966.