IRS Issues Notice Providing for the Delay of Federal Tax Filings and Federal Tax PaymentsApril 10, 2020 – Client Alert
Although it has occurred sporadically – Notice 20-17 on March 18, Notice 20-18 on March 21, Notice 20-20 on March 27 – the IRS has finally issued comprehensive (almost) guidance in Notice 20-23 on April 9 providing for the delay of federal tax filings and federal tax payments for the period from April 1, 2020, through July 15, 2020.
Under Notice 20-23, the following return filing (“Specified Forms”) and tax payment (“Specified Payments”) deadlines have been extended until July 15, 2020:
- Income tax return filings and payments (Forms 1040, 1040-SR, 1040-NR, 1040-NR-EZ, 1040-PR, 1040-SS)
- Corporate tax return filings and payments (Forms 1120, 1120-C, 1120-F, 1120-FSC, 1120-H, 1120-L, 1120-ND, 1120-PC, 1120-POL, 1120-REIT, 1120-RIC, 1120-S, 1120-SF)
- Partnership tax return filings (Forms 1065, 1066)
- Estate and trust income tax return filings and payments (Forms 1041, 1041-N, 1041-QFT)
- Estate and generation-skipping transfer tax return filings and payments (Forms 706, 706-NA, 706-A, 706-QDT, 706-GS(T), 706-GS(D), 706-GS(D-1)).
- Information Regarding Beneficiaries Acquiring Property from a Decedent (Form 8971)
- Gift and generation-skipping transfer tax return filings and payments (Form 709)
- Exempt organization business income tax returns and other payments (Form 990-T)
- Deferred estate tax payments under IRC sections 6161, 6163 and 6166
- Excise tax return on investment income tax return filings and (Form 990-PF)
- Private Foundation or Section 4947(a)(1) Trust Treated as Private Foundation tax return filings and excise tax payments (Form 4720)
- Quarterly estimated income tax payments (Forms 990-W, 1040-ES, 1040-ES (NR), 1040-ES (PR), 1041-ES, 1120-W)
Not addressed in Notice 20-23 is whether taxpayers will need to make separate computations of their first and second installments of estimated taxes (typically due April 15 and June 15) or instead the IRS will provide a streamlined method to make a single computation for both of those installments which are now due concurrently on July 15.
The foregoing extensions are automatic and no extension forms or other filings are required. Notice 20-23 expressly states that “the period beginning on April 1, 2020, and ending on July 15, 2020, will be disregarded in the calculation of any interest, penalty, or addition to tax for failure to file the Specified Forms or to pay the Specified Payments postponed by this notice. Interest, penalties, and additions to tax with respect to such postponed Specified Filing and Payment Obligations will begin to accrue on July 16, 2020.”
In addition, Notice 20-23 provides that “any person performing a time-sensitive action listed in either § 301.7508A-1(c)(1)(iv) – (vi) of the Procedure and Administration Regulations or Revenue Procedure 2018-58, 2018-50 IRB 990 (December 10, 2018), which is due to be performed on or after April 1, 2020, and before July 15, 2020 (Specified Time-Sensitive Action),” has until July 15, 2020, to perform that Specified Time-Sensitive Action. Specified Time-Sensitive Actions include filing a Tax Court petition and filing a claim for credit or refund of any tax. Thus, the deadline for all Specified Time-Sensitive Actions is now July 15, 2020, and must therefore be completed on or before that date.
Finally, Notice 20-23 also provides the IRS with additional time to perform the time-sensitive actions described in § 301.7508A-1(c)(2) (“Time-Sensitive IRS Action”). For persons under examination, whose cases are with the Independent Office of Appeals or who, between April 6 and July 15, file documents or make “payments with respect to a tax for which the time for assessment would otherwise expire during this period,” “a 30-day postponement is granted for Time-Sensitive IRS Actions if the last date for performance of the action is on or after April 6, 2020, and before July 15, 2020.” Thus, Time-Sensitive IRS Actions may still expire before July 15, 2020.