THE TRANSMISSION DATE WILL EXPIRE ON OCTOBER 15, 2020 TO THOSE WHO REQUESTED AN EXTENSION TO FILE TRERE TAXES! In response to COVID-19, the IRS in Notice 2020-18 extended until July 15, 2020, the April 15 due date for filing federal income tax returns. Notice 2020-18 also removed the previously imposed caps on the payment amount that could be postponed so that taxpayers now have until July 15 to pay their entire tax liability without incurring penalties or interest. Notice 2020-18 supersedes Notice 2020-17, issued on March 18, 2020, in which the IRS postponed the April 15 payment deadline until July 15 and imposed certain caps on the amounts subject to relief (see Tax Alert 2020-0609). Subsequently, on March 24, 2020, the IRS released Filing and Payment Deadlines Questions and Answers (FAQs), clarifying Notice 2020-18. Expanded relief In Notice 2020-18, the IRS restates and expands the relief provided in Notice 2020-17 by applying the extended July 15 deadline to filings, as well as payments, that would have otherwise been due on April 15. FAQ 1 clarifies that the extensions provided apply to individuals, trusts, estates, corporations, and all types of unincorporated business entities. Taxpayers do not have to file Form 4868 to obtain an automatic extension for individual returns or Form 7004 for an automatic extension for business returns to receive filing relief. In addition, Notice 2020-18 eliminates the caps on income tax payments deferred from April 15 to July 15. The previous guidance had capped the amount of deferred payments at $1 million per individual taxpayer and $10 million for C corporations and consolidated groups. The filing and payment relief is only available for federal income tax returns and associated payments for the 2019 tax year due on April 15, and for federal estimated income tax payments for the 2020 tax year (including tax on self-employment income) due on April 15. According to FAQ 16, second-quarter 2020 estimated income tax payments are still due on June 15, 2020. The filing and payment extensions only apply to federal income tax and not any other tax type (e.g., excise, gift, or payroll taxes). The FAQs also state that Notice 2020-18 does not apply to information returns (FAQ 10). However, information returns that must be attached to the income tax forms listed in the FAQs should qualify for the extension relief. Finally, the extension available for estates applies only to income tax filings and payments, not to estate tax filings or payments (FAQ 7). For fiscal-year filers, if a federal income tax return for a fiscal year ending during 2019 is due on April 15, 2020, whether that is the original or extended due date, the filing due date is postponed until July 15, 2020 (FAQ 4).
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