March 2020: IRS Special Payment Relief
JUST RELEASED: IRS TO PROVIDE SPECIAL PAYMENT RELIEF IN RESPONSE TO COVID-19
The IRS has just released information on special payment relief that will be available to a certain individual and business taxpayers for the 2019 filing season.
The filing deadline remains April 15, 2020, but the IRS has changed the payment dates as follows:
For individual taxpayers: Income tax payment deadlines for individual returns due April 15, 2020, are automatically extended to July 15, 2020, for up to $1 million of their 2019 tax. This payment relief applies to all individual returns, including self-employed individuals, trusts, and estates.
For C Corporations: Income tax payment deadlines for C Corporations are automatically extended until July 15, 2020, for up to $10 million of their 2019 tax.
For all of the taxpayers above, the special payment relief also applies to 1st quarter estimated tax payments for 2020. The IRS will automatically provide this relief to taxpayers, and no additional forms are required to be filed with the extension.
Penalties and interest will begin to accrue on any remaining balance due as of July 16, 2020. Interest and penalties will be automatically avoided if your return is filed or an extension is requested by April 15, 2020, and your balance is paid by July 15, 2020.
Please note that the filing deadline is still April 15, 2020 – you must file your return or file an extension by April 15 in order to take advantage of the special payment relief.
The relief only applies to federal income tax. We will reach out with any additional information regarding state income tax payments once information is released from the Colorado Department of Revenue. We are closely monitoring the situation for new developments and will continue to update you accordingly.
Please let us know if you have any questions or concerns regarding this newest change to the 2019 filing season. We understand that these are unsettling times, and we want you to know what we are here to serve you during this time.