On March 18, the Internal Revenue Service issued Notice 2020-17, which provides additional guidance related to the upcoming April 15 federal tax deadline. Below is a summary of the details contained in the notice and important guidance provided by the IRS.
The due date for making federal income tax payments, originally due April 15, has now been extended until July 15, 2020 (subject to the limits in the "Under this notice" section below).
The extension of time for making payments is available with respect to the 2019 balance due payments and 2020 federal estimated income tax payments that are otherwise due April 15.
The due date for filing tax returns has not been extended by the IRS. Taxpayers must still file their tax return or file for an extension by April 15.
Under this notice:
Individuals can postpone payments of up to $1 million regardless of their filing status.
C-Corporations can postpone payments of up to $10 million for each consolidated group or for each C-Corporation that does not join in filing a consolidated return.
Any amount due in excess of the above limits will accrue penalties and interest from April 15, 2020 until the date the payment is made.
The Indiana Department of Revenue has indicated that they are prepared to follow suit, but at this time we are still awaiting additional guidance. In addition, the AICPA (American Institute of Certified Public Accountants) is calling on the Department of Treasury to give taxpayers an extension of the April 15 tax return filing deadline, rather than just an extension for making payments. We will continue to monitor this ever-evolving situation and provide additional information as it becomes available.
If we can assist you further with better understanding these updates and how they may affect you or your business, please call Nick Hopkins at (317) 608-6695 or email [email protected].
By Nick Hopkins, CPA, CFP®
