March 19, 2020

April 15 Federal Income Tax Payment Deadline Extended

Nicola Lemay

Foley Hoag LLP

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Foley Hoag LLP

Due to the COVID-19 pandemic, the Treasury has announced that the due date for any U.S. federal income tax payments otherwise due on April 15th has been extended to July 15th, subject to certain limitations. This extension of the April 15th due date applies to both (i) income tax payments for the 2019 income tax year and (ii) estimated tax payments for the 2020 tax year.
The amount of the tax payments that may be deferred to July 15th is limited to (i) $10 million for a consolidated group of corporations or for a single corporation that does not join in filing with a consolidated group or (ii) $1 million for other types of U.S. federal income tax returns. For example, married individuals filing a joint tax return are entitled to defer payment of up to $1 million in U.S. federal income taxes, which is the same amount as a single individual is permitted to defer.
Affected taxpayers are still required to file their income and estimated tax returns by the normal April 15th deadline, but penalties and interest on the unpaid taxes will not be imposed for the 90 day deferral period if the required U.S. federal income tax returns have been timely filed. Taxpayers still may file for the automatic 6-month extension of the April 15th tax return filing deadline.
The extension of the U.S. federal income tax payment deadline applies only to U.S. federal tax returns. However, states are actively monitoring the U.S. federal response to the COVID-19 pandemic and are also implementing (or considering) changes to their tax filing and/or payment deadlines.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.