IRS Issues Guidance Regarding Extension of Tax Filing and Payment Deadlines
By Eduardo Chung and Nathan Pliskin
March 23, 2020
The Internal Revenue Service Issued Notice 2020-18 (The “Notice”), which supersedes the limited relief issued in Notice 2020-17 (See our Alert “IRS Issues Guidance Regarding Extension of Tax Payment Deadline”). The Notice also provides guidance on the extension of time to file tax returns that was previously announced by Treasury Secretary Steven Mnuchin (See our Alert “Tax Filing Deadline Extended to July 15th”).
- The Notice provides an automatic postponement of the April 15, 2020 filing deadline until July 15, 2020 for any person (including individuals, trusts, estates, partnerships, and corporations) with a federal income tax return due on April 15, 2020.
- The Notice further provides that any federal income tax payment due on April 15, 2020 is likewise postponed until July 15, 2020. Payments include income taxes due with a person’s 2019 income tax return and payments of a person’s first quarter estimated income tax liability for the 2020 tax year.
- The Notice also removes the limitations placed by Notice 2017-17 on the total amount of tax payments that may be postponed by any taxpayer. Thus, the $1 million cap for individuals and $10 million cap for corporations are no longer applicable.
- No interest, penalty or addition to tax for failure to file or failure to pay will be assessed on the amount of federal income tax postponed under the Notice.
- Finally, the Notice clarifies that the extension does not apply to: (a) any other type of payment or deposit of tax other than income taxes and (b) any Federal information return.
Mazars USA LLP is continuing our operations in a normal fashion and we have ensured that our systems are able to handle a fully remote workforce without interruption of client services. We encourage you to send us your tax documents as soon as possible (preferably in electronic format) so that we can continue providing the exceptional service that you have come to expect from Mazars USA.