Mar 19

Citing Coronavirus (COVID-19), Treasury Defers April 15 Tax Day

Citing President Donald Trump’s declaration of a national emergency due to the novel coronavirus (COVID-19) pandemic, the Treasury Department in a Notice officially extended by 90 days the April 15 deadline many taxpayers have to pay federal income tax.

The March 18, 2020 notice applies to all taxpayers with a federal income tax payment due April 15. Individuals, consolidated groups and C Corporations facing taxes (and estimated advance payments) due April 15 now have until July 15, 2020 to pay all or a portion of those taxes. For individuals, up to $1 million in tax payments may be deferred, while consolidated groups and C Corporations may defer up to $10 million. Taxpayers with tax bills in excess of the deferred amounts must still pay the excess by April 15. In order to claim the deferral, taxpayers still must file their income tax returns or request an automatic six-month filing extension by April 15.

The Notice follows congressional testimony by Treasury Secretary Steven Mnuchin on March 11 and an announcement at a press conference March 17 that the administration was going to extend payment relief to taxpayers.

During the deferment, interest and penalties on deferred taxes due would not begin accruing until July 16, 2020.

The Treasury Department urged taxpayers with refunds to file their returns as soon as possible.

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