The Department of the Treasury and the IRS Extend April 15 Tax Deadlines

In response to President Trump’s emergency declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act in connection with the ongoing Coronavirus Disease 2019 (COVID-19) pandemic, the Department of the Treasury and the IRS have granted a 91-day extension to certain taxpayers to file their 2019 Federal income tax returns and to make their 2019 Federal income tax payments and 2020 first quarter estimated income tax payments. The extension applies to all taxpayers required to file any such income tax return or to make any such income tax payments on April 15, 2020. These returns and payments are now due on July 15, 2020. There is no limitation on the amount of the payment that may be postponed. No interest, penalties, or addition to tax for failure to pay will begin to accrue until July 16, 2020. Affected taxpayers do not have to file Forms 4868 or 7004 to request extensions.

Taxpayers should still be mindful of state income tax deadlines, as those may not have been automatically extended by Notice 2020-18. In addition, there has been no guidance regarding 2020 second quarter estimated payments, which for most affected taxpayers will be due June 15, 2020. Finally, any individual taxpayer who owes a gift tax as a result of gifts made in 2019 should still make that tax payment by April 15, 2020, as that payment deadline was not extended.

For more information, contact your Quarles & Brady attorney or:

• Kathryn Muldoon: (414) 277-5875 / kathryn.muldoon@quarles.com