Federal and State Tax Filing and Payment Extensions

UPDATED March 23, 2020, to reflect Kentucky’s adoption of income tax relief announced by IRS
Originally published March 20, 2020

In light of the COVID-19 pandemic, the IRS announced that individuals and businesses will be given 90 extra days to file their Federal income tax returns and pay any tax liabilities resulting therefrom. The due date for filing Federal income tax returns and making tax payments is now July 15, 2020.

The relief provided applies solely to Federal income tax filings and payments (including tax filings and payments on self-employment income) that were to be due on April 15, 2020, for the 2019 taxable year and the first quarter Federal estimated income tax filings and payments (including tax filings and payments on self-employment income) that were to be due on April 15, 2020, for the 2020 taxable year.

The maximum amount that may be postponed for individuals or married individuals filing a joint return is $1 million. For businesses, the maximum amount is $10 million. 

Indiana, Kentucky, and Illinois have provided the following information to date concerning state tax filing and payment changes.

Indiana

Indiana Governor Eric Holcomb announced that the Indiana Department of Revenue will also delay tax filing and payment obligations by 90 days. Specifically, “Individual tax returns and payments, along with estimated payments originally due by April 15, 2020, are now due on or before July 15, 2020. Returns included are the IT-40, IT-40PNR, IT-40RNR, IT-40ES, ES-40, and SC-40. Corporate tax returns and payments, along with estimated payments originally due by April 15 or April, 20 are now due on or before July 15, 2020. Those originally due on May 15, 2020, are now due on August 17, 2020. Returns included are the IT-20, IT-41, IT-65, IT-20S, FIT-20, URT-1, IT-6, FT-QP, and URT-Q.” All other tax return filings and payment due dates remain unchanged.

Kentucky

The Kentucky Department of Revenue announced on March 22, 2020, that Kentucky would also be extending the 2019 Kentucky income tax return filing due date from April 15, 2020, to July 15, 2020. Additionally, Kentucky income tax payments due on April 15, 2020, are also deferred for 90 days to July 15, 2020.

Illinois

No specific guidance has yet been posted to the Illinois Department of Revenue website with regard to the deferment of tax payments. However, the Illinois Attorney General’s Office announced on March 18, 2020, that estates with returns and payments due between March 16, 2020, and April 15, 2020, will receive a 30-day extension for filing and payment. The extension of time to pay, however, does not waive or abate statutory interest, if any.

As further developments occur, we will continue to update you about tax considerations relating to the COVID-19 pandemic.

Please contact your KDDK attorney or any member of the KDDK tax planning practice team for additional information and individualized guidance on this or any related topic.