COVID-19: Expanded Federal tax filing and payment relief

COVID-19: Expanded Federal tax filing and payment relief

The Treasury Department and IRS announced that Notice 2020-23 (PDF) extends additional key tax deadlines. The extensions generally now apply to all taxpayers that have a filing or payment deadline falling on or after April 1, 2020, and before July 15, 2020. Individuals, trusts, estates, corporations and other non-corporate tax filers qualify for the extra time. This means that anyone, including Americans who live and work abroad, can now wait until July 15 to file their 2019 federal income tax return and pay any tax due.

Associated interest, additions to tax, and penalties for late filing or late payment will be suspended until July 15, 2020. 

Some of the extended returns and payments are:

  • Individual income tax payments and return filings;
  • Calendar year or fiscal year corporate income tax payments and return filings;
  • Calendar year or fiscal year partnership return filings;
  • Estate and trust income tax payments and return filings;
  • Estate and generation-skipping transfer tax payments and return filings;
  • Quarterly estimated income tax payments;
  • Form 8971, Information Regarding Beneficiaries Acquiring Property from a Decedent and any supplemental Form 8971, including all requirements contained in section 6035(a) of the Code;
  • Gift and generation-skipping transfer tax payments and return filings;
  • Estate tax payments of principal or interest due as a result of an election made under sections 6166, 6161, or 6163 and annual recertification requirements under section 6166 of the Code;
  • Exempt organization business income tax and other payments and return filings;
  • Excise tax payments on investment income and return filings;
  • Installment payments under section 965(h) due on or after April 1, 2020, and before July 15, 2020;
  • Additional information can be found in Notice 2020-23 (PDF).

This relief is automatic; Affected Taxpayers do not have to call the IRS or file any extension forms, or send letters or other documents to receive this relief. However, Affected Taxpayers who need additional time to file may choose to file the appropriate extension form by July 15, 2020, to obtain an extension to file their return, but the extension date may not go beyond the original statutory or regulatory extension date.

For example, a Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, may be filed by July 15, 2020, to extend the time to file an individual income tax return, but that extension will only be to October 15, 2020.

That extension will not extend the time to pay federal income tax beyond July 15, 2020.

For other important tax law changes that were recently passed click on the blog link below:
Key Business Tax Provisions
Key Individual Tax Provisions

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