Insights

The IRS announced in Notice 2020-17 that, due to the Emergency Declaration issued by the President, Treasury is providing tax relief in the form of extending the due date for income tax payments due on April 15 until July 15 interest and penalty free. For individuals, relief is provided for payments of up to $1 million, regardless of filing status. Accordingly, single individuals and joint filers have the same $1 million limitation. Corporations with an income tax liability due on April 15 are subject to a $10 million limitation. Estate and trust entities with an April 15 income tax liability likewise are entitled to the payment extension. The extension applies to estimated payments of income taxes and self-employment taxes due on April 15. Notwithstanding payment relief, it is still necessary to either file a timely income tax return by April 15 or to obtain a timely filing extension.

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