August 15, 2020

Volume X, Number 228

August 14, 2020

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August 13, 2020

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August 12, 2020

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IRS Provides Some Relief From Tax Payment (But Not Filing) Deadlines Due To COVID-19

On March 13, President Trump issued an emergency declaration that directed Secretary Mnuchin to provide appropriate relief from tax payment deadlines to Americans who have been adversely affected by the COVID-19 pandemic. We outline the specifics.

  1. IN DEPTH


On March 13, 2020, President Trump issued an emergency declaration that directed Secretary Mnuchin to provide appropriate relief from tax payment deadlines to Americans who have been adversely affected by the COVID-19 pandemic. Today, in response to this direction, the IRS issued Notice 2020-17. The Notice declares that all taxpayers have been affected by the emergency and gives all taxpayers an extension of time until July 15, 2020, to make certain income tax payments that would otherwise have been due on April 15, 2020.

Here are the specifics:

  1. Individuals may defer payment of up to $1 million worth of income taxes that would have been due on April 15, including estimated income taxes on 2020 income and income taxes due on April 15 with respect to 2019 income. The notice is ambiguous as to whether married individuals share a single $1 million deferral amount, particularly if they file joint returns.

  2. Corporations may defer payment of up to $10 million worth of income taxes that would otherwise be due on April 15.

  3. The extension does not apply to other federal tax payments due on April 15 such as federal gift taxes.

  4. The extension does not apply to the filing of tax returns or information returns. The due date for filing individual tax returns for 2019 remains April 15, 2020. As in other years, taxpayers who want an extension of time for filing their tax returns should file the appropriate form for obtaining extensions no later than April 15, 2020.

For more information about the tax impact of the COVID-19 emergency declaration, see our prior On the Subject.

© 2020 McDermott Will & EmeryNational Law Review, Volume X, Number 79

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About this Author

Justin Jesse International Tax Attorney McDermott Will Emery Law Firm
Associate

Justin Jesse is an associate in the law firm of McDermott Will & Emery LLP and is based in the Firm’s Washington, DC office.  He focuses his practice on U.S. and International Tax.

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Carlyn S. McCaffrey, private client, tax attorney with McDermott Will law firm
Partner

Carlyn S. McCaffrey is a partner in the law firm of McDermott Will & Emery LLP and is co-head of the private client practice in the Firm’s New York office.  She focuses her practice on domestic and international tax and estate planning for high net worth individuals.  She also advises individuals and institutions on charitable planning matters.

Carlyn has been widely recognized as a leading lawyer in her field.  Since 2006, Chambers USA has ranked her a “Star” lawyer for business and wealth management, with the most recent edition stating that Carlyn “is regarded by the market as being at the cutting edge of trusts and estate law.”  The Best Lawyers in America has named her a “Best Lawyer” in the specialty of trusts and estates in each of the past 20 years.  Carlyn has been ranked as a “Highly Recommended” lawyer for private clients by PLC Which Lawyer? since 2009. 

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Andrew R. Roberson tax attorney McDermott Will. Andy handles tax cases in Federal court, United States Tax Court
Partner

Andrew R. Roberson is a partner in the law firm of McDermott Will & Emery LLP and is based in the Firm’s Chicago office.  Andy specializes in tax controversy and litigation matters, and has been involved in over 30 matters at all levels of the Federal court system, including the United States Tax Court, several US Courts of Appeal and the Supreme Court. 

Andy also represents clients, including participants in the CAP program, before the Internal Revenue Service Examination Division and Appeals Office, and has been successful in settling...

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