The Secretary of the Treasury issued additional guidance today pursuant to Notice 2020-17 clarifying that the payment deferral also applies to trusts and estates, as well as to 1Q 2020 estimates. The guidance is summarized below:
- April 15, 2020 federal income tax payments (including self-employment taxes), subject to limitation below, are not due until July 15, 2020.
- For each C corporation, up to $10,000,000 can be deferred until July 15, 2020.
- For all other affected taxpayers, up to $1,000,000 can be deferred until July 15, 2020.
- These limits include any balance due for 2019 and the first quarter 2020 estimated payments.
- No interest or penalties will accrue on any payments made on or before July 15, 2020.
- This payment relief applies to all individual returns, including self-employed individuals, and all entities other than C corporations, such as trusts or estates.
- Interest and penalties will accrue on unpaid taxes beginning July 16, 2020.
- Interest and penalties will accrue on unpaid taxes in excess of the $10,000,000/$1,000,000 exceptions beginning April 16, 2020.
- No extension is provided for the payment or deposit of any other type of federal tax (e.g. payroll), or for the filing of any tax or information return.
Sisterson will continue to provide federal and/or state guidance as it becomes available.