In response to the ongoing COVID-19 emergency, on March 21, 2020, the Internal Revenue Service (IRS) issued Notice 2020-18, extending the Federal income tax return filing and payment deadline to July 15, 2020. As a follow up, the IRS posted answers to frequently asked questions regarding the notice.
- Any person with a Federal income tax return or payment due on April 15, 2020, is eligible for relief under Notice 2020-18.
- Taxpayers, including businesses or other entities, who have filing or payment due dates other than April 15 have not been granted relief at this time.
- Normal filing, payment, and deposit due dates continue to apply for both payroll and excise taxes.
- Notice 2020-18 does not apply to the filing of Federal information returns.
- The relief provided in Notice 2020-18 only applies to Federal income tax filings and associated payments. Taxpayers should check with their state tax agencies for details on their state filing and payment deadline.
- Notice 2020-18 postpones the filing and payment of Federal income taxes reported on the following forms: Form 1040, 1040-SR, 1040-NR, 1040-NR-EZ, 1040-PR, 1040-SS; Form 1041, 1041-N, 1041-QFT; Form 1120, 1120-C, 1120-F, 1120-FSC, 1120-H, 1120-L, 1120-ND, 1120-PC, 1120-POL, 1120-REIT, 1120-RIC, 1120-SF; Form 8960; Form 8991.
- Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic Federal tax filing and payment relief. If taxpayers expect a refund, they are encouraged to file their return as soon as t can so that they can receive their refund.
- Individuals can request an automatic extension to file their Federal income tax return if they can’t file by the July 15 deadline. Individuals can request a filing extension by electronically filing Form 4868. Businesses, including trusts, must file Form 7004.
- Taxpayers must request the automatic extension by July 15, 2020. If taxpayers properly estimate their 2019 tax liability using the information available to them and file an extension form by July 15, 2020, their tax return will be due on October 15, 2020. To avoid interest and penalties when filing their tax return after July 15, 2020, taxpayers should pay the tax they estimate as due with their extension request.
- Taxpayers who have already filed their 2019 income tax return that would have been due April 15 can avoid interest and penalties by paying their taxes in full by July 15, 2020. Interest and penalties will begin to be charged after July 15 for any amount remaining unpaid by that date.
- Taxpayers who have already filed their 2019 income tax return and scheduled a payment of taxes for April 15, 2020, will not have their payment automatically rescheduled to July 15, 2020. However, taxpayers can cancel and reschedule the payment.
- Notice 2020-18 postponed first quarter 2020 estimated income tax payments from April 15 to July 15, 2020. Second quarter 2020 estimated income tax payments are still due on June 15, 2020.
- Notice 2020-18 does not extend the statute of limitations on refund claims. Taxpayers must abide by the regular statute of limitations for their refunds to be considered timely.
- The notice does not change the estimated tax requirements or estimated tax penalty for 2019.
- Interest, penalties, and additions to tax with respect to such postponed Federal income tax filings and payments will begin to accrue on July 16, 2020.
The information provided in the above does not, and is not intended to, constitute legal advice; instead, all information and content provided in the above is for general informational purposes only. Readers of this material should contact an experienced tax attorney to obtain advice with respect to any particular legal matter.
McMahon & Tivnan, PC is responsible for this content. McMahon & Tivnan, PC represents individuals, estates and businesses with federal and state tax controversies, including audits, appeals, litigation and foreign transaction reporting. Collectively, McMahon & Tivnan, PC’s Boston-based tax attorneys have more than 100 years of experience investigating and