More Details About the Tax Payment Deadline Extension

More Details About the Tax Payment Deadline Extension

IRS Extends Payment Deadline RS

The IRS released Notice 2020-17 providing additional information related to the extension of the deadline for Federal income tax payments.

Here are our takeaways:

  • The extension applies to those taxpayers with a Federal income tax payment due April 15, 2020 (Affected Taxpayer).
  • The extension applies to an Affected Taxpayer’s tax due at April 15, 2020 (Applicable Postponed Payment Amount).
  • The Applicable Postponed Payment Amount includes the payment of 2019 tax due and the 2020 first quarter estimate payment (Both due at April 15, 2020).
  • An Affected Taxpayer may defer the Applicable Postponed Payment Amount up to $1,000,000 ($10,000,000 for C-corporations).
  • This deferral threshold applies regardless of filing status (i.e. a single taxpayer or married filing jointly).
  • This payment extension does not cover the 2020 second quarter estimate due June 15, 2020.
  • This extension does not apply to the filing of the 2019 income tax return. A formal extension still needs to be prepared.
  • This extension only applies to Federal income tax and not to other types of taxes such as payroll, estate, and gift tax. At this time, most state or other district tax returns or payments are not addressed, although this is being considered.

We will continue to bring you details and information and assist you and your business in navigating these changes. If you have any questions about this extension or the steps that Landmark is taking to assist with these requirements, please contact us.