Details about the Covid 19 Relief for Income Taxes

The IRS has published details about the Special Relief being offered in response to the Covid 19 Outbreak. The following is a synopsis that may be helpful but should not be relied on as authoritative.

Most important: The Payment Deadline has been Extended to July 15, 2020 for Federal Income taxes that would e normal been due on April 15, 2020.

Some details:

For Individuals: Income tax payment deadlines for individual returns, with a due date of April 15, 2020, are being automatically extended until July 15, 2020, for up to $1 million of their 2019 tax due. This payment relief applies to all individual returns, including self-employed individuals, and all entities other than C-Corporations, such as trusts or estates. IRS will automatically provide this relief to taxpayers. Taxpayers do not need to file any additional forms or call the IRS to qualify for this relief. This means that there is no need to file an extension unless you are still not ready on July 15th. If tstill not ready at that point you can get an automatic extension to 10/15 by filing the form.

An interesting wrinkle regarding estimate payments: You can ignore the 1st estimate due Jan 15th but the Second estimate due June 15th is not relieved and must be filed on time. See this article for this and a lot of other Q&A’s.

For Corporations: For C Corporations, income tax payment deadlines are being automatically extended until July 15, 2020, for up to $10 million of their 2019 tax due. This relief also includes estimated tax payments for tax year 2020 that are due on April 15, 2020. Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020.
If you file your tax return or request an extension of time to file by April 15, 2020, you will automatically avoid interest and penalties on the taxes paid by July 15. Businesses must file the Extension Form – 7004.

About Filing
The filing deadline remains April 15, 2020. Taxpayers who are expecting a refund should file as quickly as possible. As always, everyone is eligible to request a six-month extension to file their return.

The IRS says: This relief only applies to federal income tax (including tax on self-employment income) payments otherwise due April 15, 2020, not state tax payments or deposits or payments of any other type of federal tax.

You can find info direct from the IRS at

California Taxes
The deadline for California taxes is now also July 15, 2020. See this webpage and for more info COVID-19 frequently asked questions .

Last updated – March 27, 2020