IRS Provides Limited Tax Payment Deferral, but No Filing Relief

| 3/19/2020
IRS Provides Limited Tax Payment Deferral, but No Filing Relief

The IRS superseded Notice 2020-17. Read about the expanded relief provided in Notice 2020-18.


On March 18, the IRS issued Notice 2020-17, which provides tax payment relief for certain taxpayers affected by the COVID-19 national emergency declared by the president. Specifically, individuals can defer until July 15, 2020, income tax payments of up to $1 million that are due April 15, 2020, interest- and penalty-free. Corporations can defer until July 15, 2020, income tax payments of up to $10 million that are due April 15, 2020, interest- and penalty-free. Taxpayers still must timely file their returns by April 15, unless they timely request an extension of time to file their returns.

  • For individuals, income tax payments (including tax payments on self-employment income) for 2019 and estimated tax payments for 2020 that are due on April 15, 2020, count toward the $1 million deferral amount. For married individuals filing a joint return, only the $1 million deferral amount applies. The deferral amount is not doubled for married individuals. 
  • For corporations, income tax for 2019 and estimated tax for 2020 that are due on April 15, 2020, count toward the $10 million deferral amount. In the case of a consolidated group of corporations, only one $10 million deferral amount applies.
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No extension is provided in the notice for payment or deposit of any other type of federal tax or for the filing of any tax return or information return. However, taxpayers still may file a request to extend the April 15, 2020, filing due date until Oct. 15, 2020, under existing law. Taxpayers eligible to defer payment of income tax until July 15, 2020, still must estimate their tax due if they file a request for an extension of time to file their income tax return.

Taxpayers that are eligible for relief, but that do not pay tax due on or before July 16, 2020, are subject to interest and penalties beginning on July 16, 2020. Any unpaid amount over the allowed deferral amount will be subject to interest and penalties beginning on April 15, 2020.

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Rochelle Hodes
Rochelle Hodes
Principal, Washington National Tax
Howard Wagner - social
Howard Wagner
Partner, National Tax Services