3/21/20 - Updated Tax Guidance on New Deadlines

The IRS just released notice 2020-18 formally extending the filing date as well as the payment date to July 15, 2020. Some of the key take-aways:

  • The relief under notice 2020-18 is granted to “the persons…determined to be affected by the COVID-19 emergency” (page 1, section 1). That is expanded to mean “any person with a Federal income tax payment or a Federal income tax return due April 15th, 2020 is affected by the COVID-19 emergency for purposes of this relief.” Page 2, section III, first paragraph

  • Furthermore, a “person” includes an individual, a trust, estate, partnership, association, company or corporation. Page 2, section III, first paragraph.

  • For affected taxpayers, the due date for filing Federal income tax returns and making Federal income tax payments due April 15, 2020 is automatically postponed to July 15, 2020. Page 2, section III, second paragraph.

  • NEW! – Affected taxpayers do not have to file Forms 4868 or 7004 (extensions). Page 2, section III, second paragraph.

  • NEW! – There is no limit on the amount of the payment that may be postponed. Page 2, section III, second paragraph.

  • For payments made after July 15, 2020, penalties and associated interest will begin to accrue as of July 16, 2020. Page 3, section III, final paragraph.

In Governor Cuomo’s address held Friday, March 20th, 2020, they stated that “the Federal deadline is the New York Deadline” with regards to tax returns and payments. There is not an authoritative document out yet from them, but expect it to come soon enough.

As always, please feel free to reach out with any and all questions. We’re doing everything to keep things operating as near normal as times will allow. Above all health and safety are paramount. Please practice CDC protocols and help work to #FLATTENTHECURVE

#tax #taxdeadlines2020 #covid19 #Tax

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