IRS postpones additional filing and payment dates until July 15, 2020
In late March, the IRS Notice 2020-18 postponed all federal income tax payments and income tax returns that were due April 15, 2020, to July 15, 2020. This included, among others, Forms 1040, 1041, and 1120, plus estimated tax payments. Later, Notice 2020-20 generally expanded this relief to include certain gift and estate tax returns and payments.
Now the IRS has released Notice 2020-23, which further expands upon the relief provided in those notices, generally postponing until July 15, 2020, all tax returns, forms, attachments to forms (including elections), and tax payments (including Section 965 tax payments) that were due on or after April 1, 2020, and before July 15, 2020, including those on extension.
Some notable additions that were not covered by prior IRS guidance include:
- Filing a claim for credit or refund of any tax
- Form 990
- Form 4466 (C corp application for quick refund of estimated tax)
- International Forms (5471, 5472, 8858, and 8865)
- Quarter 2 estimates (generally due June 15, 2020)
- Trust & Estate Forms (5227, 3520, 1041, 8855, 706 series, 8971 and 2553 (QSST/ESBT))
The Notice specifically lists most returns and forms that have been postponed and provides the following language (emphasis added):
“The Secretary of the Treasury has also determined that any person performing a time-sensitive action listed in either Section 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), is an Affected Taxpayer.”
Rev. Proc. 2018-58 contains an extensive list of elections, forms, and other “time-sensitive acts,” including extending, until July 15, both (a) the 45- and 180-day rules for Section 1031 exchanges and (b) the 180-day rule for investment in a qualified opportunity zone fund.
The Notice also defines “time-sensitive actions” to include activities set forth in Regulation Sections 301-7508-1(c)(1)(iv)-(vi), including filing a petition with the Tax Court and filing a claim or bringing suit for a credit or refund.
WHAT DOES COHNREZNICK THINK?
The COVID-19 situation is quickly evolving on many fronts, tax being but one of many matters that need to be addressed. We applaud the Treasury and IRS for taking these steps and are glad to see that all income tax returns and related tax payments due on or after April 15 and before July 15 have been automatically postponed. While the IRS finally issued comprehensive filing and payment postponement guidance, the states will now need to again potentially adjust their filing and payment due dates. We recommend that taxpayers expecting refunds file as soon as practical, rather than wait until the new deadline, and that taxpayers who will not file by July 15 extend well in advance. Check our Coronavirus Resource Center for updates.
Any advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues. Nor is it sufficient to avoid tax-related penalties. This has been prepared for information purposes and general guidance only and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and CohnReznick LLP, its members, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.
Coronavirus Resource Center
Insight10 Questions: Your retirement accountsDana FriedWhat are 2022’s contribution limits? Have you considered all IRA types? Are you on top of RMDs? Read our insights and advice on these questions and more.
InsightTexas Supreme Court clarifies proper method of sourcing franchise tax receipts from servicesJohn Iannotti, Lance RothenbergRead what the Texas Supreme Court said in this case on how to properly source receipts from services while apportioning income and determining tax liabilities.
InsightNew Jersey updates guidance on tax treatment of virtual currencyLance Rothenberg, Harry GolematisTechnical Bulletin TAM-2015-1(R) covers corporation business tax, gross income tax, and sales and use tax for currencies like Bitcoin. Read more.
InsightCalifornia grants one year reprieve on tax basis capital account reportingMarietta Probst, Krista Schipp
On-demandPartnership tax concerns to think through in 2022Join CohnReznick’s National Tax Team for a high-level overview and update of new compliance developments. Members of our international, state and local, and federal tax teams will focus on the areas your company needs to watch.