Taxpayer COVID-19 Filing and Tax Payment Relief

The IRS has released Notice 2020-18 which supersedes Notice 2020-17.  This notice follows additional statements from Treasury Secretary Mnuchin on Friday March 20th about providing filing extension relief to Taxpayers.  The notice provides that the due date of Federal income tax returns for Affected Taxpayers is automatically postponed to July 15, 2020.  Affected Taxpayers do not have to file extension Forms 4868 or 7004.  Additionally, there is no limitation on the amount of the payment that may be postponed (which was previously limited to $1 million for individuals in Notice 2020-17).  The relief is solely limited to Federal income tax returns due on April 15, 2020 and includes Federal estimated income tax payments due on April 15, 2020.  The IRS is still encouraging taxpayers to still file returns to claim refunds, but in the event an Affected Taxpayer needs relief from filing or paying their federal income tax obligations, they have until July 15, 2020 to file and pay their tax with all interest and penalties waived.

Additionally, please be mindful of your state filing obligations.  Many states have extended their filing and payment deadline, or agreed to follow the Federal deadlines, but it is important understand your local jurisdiction filing requirements to file timely.

Please contact a member of your ARB engagement team with any questions.

by Matthew J. Pore, CPA