Due Date to Make Certain Federal Tax Payments Extended to July 15, 2020: Individuals and Corporations Can Postpone Certain Income Tax Payments (up to a Cap) Until July 15, 2020; the Due Date to File Tax Returns Has Not Changed (Yet)

Sullivan & Cromwell LLP - March 19, 2020

On March 18, 2020, the IRS issued guidance allowing individuals and C corporations to postpone until July 15, 2020 certain tax payments that were otherwise due April 15, 2020. Individuals may postpone up to $1,000,000 (regardless of filing status) of income tax payments due with respect to 2019 and estimated tax payments due with respect to the first quarter of 2020. C corporations may postpone up to $10,000,000 of such tax payments. The IRS will not charge interest or penalties with respect to the postponed tax payments. The due date to file Federal tax returns and information returns remains April 15, 2020, but legislators are seeking to extend that due date as well. Many states intend to follow the extended deadlines set by the IRS, and some have already extended their deadlines.