Urgent Tax Alert: Relief For Taxpayers with Income Taxes Due on April 15, 2020

Updated March 20, 2020 9:40 a.m.

The IRS has now extended both the filing and payment dates for taxpayers. Tax Day 2020 is now July 15, 2020.

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Due to the COVID-19 crisis, the IRS has announced extended due dates for income tax related payments.

Is the Tax Deadline Extended?

No. The due date for individuals and estates/trusts continues to be April 15, 2020. If you are unable to file by April 15, you can file for an extension.

 

When are Tax Payments Due?

Individuals: Income tax payments are now due by July 15, 2020 for up to $1 million. This includes income tax, self-employment tax and your 1st quarter 2020 estimated tax. Any income tax due on April 15, 2020 can be deferred to July 15, 2020 with no assessment of interest or penalty. No extra forms are needed in order to qualify.

 

C-Corporations: Income tax payments for C-Corporations due on April 15, 2020 are also automatically extended until July 15, 2020 up to $10 million of taxes due.

 

When Will Penalties and Interest Begin to Accrue?

Penalties and interest will begin to accrue on unpaid balances as of July 16, 2020. If you file for an extension, you will avoid interest and penalties that are due by July 15.

 

Does this apply to State Taxes?

No, this information only pertains to federal taxes. The Illinois Department of Revenue has not announced any guidance at this point, so the due date is still April 15, 2020. We are continuing to monitor what is happening with the Illinois Department of Revenue so stay tuned.

 

If you have any questions, please contact your DHJJ CPA.