Treasury & IRS Issue Guidance on Deferring Tax Deadline & Payments

In response to President Donald J. Trump’s emergency declaration pursuant to the Stafford Act, the Internal Revenue Service (“IRS”) issued Notice 2020-18 (“IRS Notice”), which supersedes IRS Notice 2020-17 and aims to provide relief from tax deadlines to person(s) who have been adversely affected by the COVID-19 emergency. Specifically, the IRS has announced that the tax filing and payment season has been pushed back 90-days.

IRS Notice Information to Consider:

à      The 90-day extension deadline for filing and payment is July 15, 2020.

à      There is no limitation on the amount of payment that may be deferred.

à      Affected taxpayers do not have to file Forms 4868 or 7004.

à      The extension of the payment deadline applies to taxpayers’ 2019 income taxes due on April 15th.

à      The term “Person(s)” includes an individual, a trust, estate, partnership, association, company or corporation, as provided in section 7701(a)(1) of the Code.

à      The deferral only applies to federal income taxes.

à      Interest, penalties, and additions to tax with respect to the extended Federal income filing and payment will begin to accrue on July 16, 2020.

As a firm, we will continue to monitor the many implications of COVID-19 and provide updates to keep our clients informed during this unprecedented time. As always, we wish everyone good health and safe keeping.