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On March 18, 2020, the IRS issued Notice 2020-17 announcing the extension of the due date for the payment of federal income taxes due April 15, 2020 until July 15, 2020, with no interest, penalties or additions to tax accruing until July 16, 2020. In response to concerns that taxpayers were still required to file their taxes or file for an extension, on March 20, 2020, Treasury Secretary Mnuchin noted that the tax filing deadline will also be extended to July 15, 2020. As a result, taxpayers generally do not need to take any action with respect to their federal income taxes until the July 15, 2020 deadline.
Previously discussed limitations ($10 million for corporations and $1 million for individuals) on deferral of tax payments are no longer applicable as taxpayers are now not required to file or pay any taxes (with no limitations) that were originally due on April 15, 2020 until July 15, 2020.
It is not clear if any deferral or relief is available for taxpayers that did not satisfy the required estimated tax payments for the prior taxable year.
We will continue to provide updates as future developments and tax related stimulus and incentives emerge.
Please contact any member of the Shearman & Sterling LLP Tax team for further information.