COVID tax

On Wednesday March 18, 2020 the IRS published Notice 2020-17 which clarifies that all income tax payments due on April 15, 2020 for any person, including estates, trusts, corporations, exempt organizations, etc.) are extended to July 15, 2020 without penalties or interest. Returns, however, must be filed on time. Note that only the first quarter estimated tax payments are extended. Individuals must still make their second quarter estimated tax payments by June 15, 2020, even though their first quarter payment isn’t due until July 15, 2020.

Also note that this relief does not extend to payroll taxes. Until Congress provides further relief, all employers must continue to make payroll tax deposits on time unless they are required to pay wages under the Emergency Paid Sick Leave Act, or the equivalent thereof for a self-employed person, which covers wages only if:

(1) the employee is subject to a Federal, State, or local quarantine or isolation order related to COVID-19;
(2) the employee has been advised by a health care provider to self-quarantine due to concerns related to COVID-19;
(3) the employee is experiencing symptoms of COVID-19 and seeking a medical diagnosis;
(4) the employee is caring for an individual who is subject to an order described in clause (1) or has been advised as described in clause (2);
(5) the employee is caring for the employee’s son or daughter if the school or place of care of the son or daughter has been closed, or the child care provider of such son or daughter is unavailable due to COVID-19 precautions; or
(6) the employee is experiencing any other substantially similar condition specified by the Secretary of Health and Human Services in consultation with the Secretary of the Treasury and the Secretary of Labor.

The IRS also has a COVID tax relief page at https://www.irs.gov/coronavirus.

Notice 2020-17 .pdf