The information contained in this Alert has been updated as of 3/20/20. Please see our newer Tax Alert here with the latest information.


The U.S. Treasury Secretary announced that taxpayers will automatically receive a 90-day extension to pay their 2019 taxes that would have been due April 15, 2020. The automatic extension applies to all individuals on up to $1 million of taxes due and to all C-corporations on up to $10 million of taxes due.

Tax liabilities above the $1 million and $10 million thresholds will still need to be paid by April 15, 2020, but all amounts up to the $1-million individual and $10-million corporate thresholds can be paid any time before mid-July without incurring interest or late payment penalties. The IRS has not yet released specific guidance for this program.


Payment vs. Filing Deadlines

Please note that while the payment date has been extended by 90 days, as of now the April 15 filing deadline for individuals, corporations, trusts and estates has not been extended. Therefore, returns must still be filed or extended by April 15, even if payment is not being made, to prevent late filing penalties. GHJ (GHJ) will keep you updated if this changes and the April 15 filing deadline is extended.


Estimated-Tax Payments

Also as of now, the Treasury has not announced an extension of the April 15 due date for 2020 first-quarter estimated-tax payments. We will update you if this changes as well.


State Deadlines

Please be advised that the 90-day payment extension applies to federal income taxes only. States may choose to do something similar, but each state may make their own decisions regarding such extensions. For example, as GHJ reported here, California recently extended state filing deadlines and payment due dates by 60 to 90 days for affected taxpayers.


Please contact your GHJ advisor with any questions on this federal payment extension or with any question on state-specific extensions. GHJ will continue to send updates as additional Treasury and California decisions are announced.