Extension of Payment Deadline

Cross References • Notice 2020-17

On March 13, 2020, the President issued an emergency declaration in response to the ongoing Coronavirus Disease 2019 (COVID-19) pandemic. The emergency declaration instructed the IRS to provide relief from certain tax deadlines.

As a result, the IRS has extended the deadline to pay a federal income tax balance due. Effective for federal income tax payments that are due by April 15, 2020, the new extended payment deadline is July 15, 2020. This extended payment deadline applies to a balance due of up to $1 million for individuals, regardless of filing status, and up to $10 million for C corporations that do not join in filing a consolidated return.

The extended payment deadline applies solely with respect to federal income tax payments, including payments of tax on self-employment income due on April 15, 2020, and federal estimated income tax payments, including payments of tax on self-employment income due on April 15, 2020.

The period beginning on April 15, 2020, and ending on July 15, 2020, will be disregarded in the calculation of any interest, penalty, or addition to tax for failure to pay the federal income taxes postponed by Notice 2020-17, up to the $1 million threshold for individuals and $10 million threshold for C corporations. Amounts in excess of these thresholds are still subject to interest and penalties if paid after the April 15, 2020 payment deadline.

Notice 2020-17 does not extend the payment or deposit of any other type of federal tax. The notice also does not extend the filing deadline for tax returns and information returns.

If you have questions or need assistance, Farris & Furlan LLC is accepting new and existing client meetings remotely. Please call us at (425) 367-4418.