On March 18, the U.S. Treasury Department issued Notice 2020-17.
The Notice provides the official rules for the deferral of tax payments due on April 15, 2020. The Notice confirms that the deferral only applies to income tax payments due on April 15 (both related to regular tax filings for 2019 and first quarter 2020 estimated tax payments).
The payment deferral only applies to the first $1 million of tax payments for individual tax filings (e.g., joint filings will not receive a $2 million deferral) or $10 million of tax payments due for corporations.
Taxpayers are still required to file tax returns due on April 15 as the deferral is only for payment. Presumably, filing a tax extension is sufficient.
Tax payments deferred are due on July 15, 2020 with no penalties or interest.
We expect, in part, the federal and state response to COVID-19 will intersect with your individual and business tax situations, including certain tax relief measures and the tax consequences of other stimulus packages. We are monitoring both federal and state bills and administrative guidance and will do our best to keep you informed during these trying times.
Meanwhile, if you have any questions on the program or the new regulations, please contact your Manning Fulton relationship attorney.