Yesterday, Treasury Secretary Steven Mnuchin announced that the federal tax deadline for an “Affected Taxpayer” will be extended (delayed) to July 15, 2020, from the traditional deadline of April 15, 2020. This favorable development was clarified today with guidance issued by the Internal Revenue Service in the form of Notice 2020-18. This further action follows news earlier in the week that the IRS was postponing the due date for making certain Federal income tax payments subject to certain dollar amount limitations.
Today’s notice defines an “Affected Taxpayer” as any one person, including individual, a trust, estate, partnership, associate or corporation, with a Federal income tax payment or a Federal income tax return that is due April 15, 2020. For an Affected Taxpayer, the due date is automatically postponed to July 15, 2020, without the need to file an extension.
Notice 2020-18 further provides that there is NO LIMITATION on the amount of the Federal tax payment that may be postponed. This relief is available solely with respect to Federal income tax payments and Federal income tax returns due on April 15, 2020, with respect to the 2019 taxable year, AND Federal estimated income tax payments due on April 15, 2020, for the 2020 taxable year. This relief includes payments of tax on self-employment income and estimated payments of the same. The notice does not extend to 2020 Federal estimated income tax payments due after April 15, 2020; therefore, the second quarter estimated tax payments, due June 15, 2020, are not postponed.
At this time, we await further information about guidelines from state and local jurisdictions. We will provide an update as soon as they are available.
BST is committed to serving your financial and tax needs during this unsettling period as the
U.S. adapts to the challenge of the COVID-19 pandemic. Please contact your BST tax professional for further information and guidance.
