Extended deadlines to file income tax returns and pay income taxes

For individuals, the deadline to file a tax return will be deferred until June 1, 2020. For corporations that would have a filing due date between March 18 and June 1, 2020, the filing due date will be deferred until June 1, 2020. For trusts with a tax year end date of December 31, 2019, the filing due date will be deferred until May 1, 2020. For trusts that would have a filing due date in April or May, the filing due date will be deferred until June 1, 2020. For these taxpayers (individuals, corporations and trusts), the payment of any income tax balance due or tax installments after March 18 will be deferred until September 1, 2020. No interest or penalties will accrue on these amounts PBO estimates a total of $63.7 billion in tax payments (balance due and tax installments) will be deferred between March 18 and September 1, 2020. The cost of borrowing for the government to avoid cash-flow issues during this period is estimated at $56.1 million. By extending the filing and payment deadlines, PBO estimates the government will forgo a total of $241.8 million in interest and penalties for late filing and late payment. Finally, by extending the payment deadline, PBO estimates the government could lose an additional $381.1 million because of increased defaults. The total cost of the measure is thus estimated at $679.0 million.