Federal Government Moves Tax Day to July 15, 2020
In response to the COVID-19 pandemic, Treasury Secretary Steven Mnuchin announced on March 20, 2020, that certain U.S. taxpayers will have a three-month extension to file and pay their taxes. Previously, in Notice 2020-17 (the “Notice”), the IRS provided that any person with a federal income tax payment due April 15, 2020, was an “Affected Taxpayer” for purposes of the Notice and could therefore defer payment of all or a portion of their federal income tax liability for a period of 90 days (the “Postponed Payment Amount”). According to the Treasury Secretary’s announcement, Affected Taxpayers will now have until July 15, 2020, to file their taxes and make payments without incurring interest or penalties.
In addition, the Notice provides that the Postponed Payment Amount is up to $10,000,000 for each consolidated group (as defined in Treas. Regs. §1.1502-1) or for each C corporation that does not join in filing a consolidated return. For all other Affected Taxpayers, the Postponed Payment Amount is up to $1,000,000 regardless of filing status. For instance, the Postponed Payment Amount is the same for a single individual and for married individuals filing a joint return. In both instances the Applicable Postponed Payment Amount is up to $1,000,000.
At the time of publication of this alert, the IRS had not provided any technical guidance regarding the filing and payment extensions.
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