On April 9, 2020, the IRS released Notice 2020-23, providing additional relief for taxpayers affected by the ongoing coronavirus disease 2019 pandemic. The relief provided expands the application of and provides greater clarity about prior guidance about extended federal filing and payment due dates.
Background & Summary
The IRS has been releasing, revising and expanding guidance about extended filing and payment due dates since mid-March when we first heard that relief was forthcoming via a tweet from the Secretary of the Treasury, Steve Mnuchin. Notice 2020-23 amplifies Notice 2020-18 and 2020-20 and provides the most comprehensive relief and related clarification issued to date regarding COVID-19 extensions.
Notice 2020-23 expands filing and payment extension relief to additional returns, tax payments and other actions. As a result, the extensions generally now apply to all taxpayers that have a filing or payment deadline falling on or after April 1, 2020, and before July 15, 2020.
Tax Return and Other Filing Obligation Relief
Any person, as defined in IRC 7701(a)(1), with a Federal tax return or other form filing obligation, which is due to be performed (originally or pursuant to a valid extension) on or after April 1, 2020, and before July 15, 2020 is automatically postponed (extended) to July 15, 2020.
What if I Can’t File by July 15?
If you need additional time to file beyond July 15, you can file the appropriate extension form by July 15, 2020 to request additional time to file, but not beyond the original statutory or regularly extension date.
Other Form and Attachments
The extension of time to file includes all schedules, returns, and other forms that are filed as attachments to the extended tax return and other filing obligations that are extended under this Notice including, but not limited to, Schedule H and SE, as well as Forms 3520, 5471, 5472, 8621, 8858, 8865, and 8938.
Elections that are made or required to be made on a timely filed return (or related attachment) which is extended by this Notice shall be timely made if filed with the extended return or attachment by July 15, 2020.
Federal Tax Payment Relief
Any person, as defined in IRC 7701(a)(1), with a Federal tax payment obligation specified below, which is due (originally or pursuant to a valid extension) on or after April 1, 2020, and before July 15, 2020 is automatically postponed (extended) to July 15, 2020.
- Individuals income tax payments submitted with Forms 1040, 1040-SR, 1040-NR, 1040-NR-EZ, 1040-PR and 1040-SS
- Quarterly estimated income tax payments calculated or submitted with Forms 990-W, 1040-ES, 1040-ES (NR), 1040-ES (PR), 1041-ES, and 1120-W
- Important - for individuals this includes Q1 and Q2 2020 estimated tax payments normally due April 15 and June 15
- Calendar year or fiscal corporate income tax payments submitted with Forms 1120, 1120-C, 1120-F, 1120-FSC, 1120-H, 1120-L, 1120-ND, 1120-PC, 1120-POL, 1120-REIT, 1120-RIC, 1120-S, and 1120-SF
- Estate and trust income tax payments submitted with Forms 1041, 1041-N, and 1041-QFT
- Estate and generation-skipping transfer tax payments submitted with Forms 706, 706-NA, 706-A, 706-QDT, 709GS(T), 706-GS(D), and 706-GS(D-1)
- Gift and generation skipping transfer tax payments submitted with Form 709
- Estate tax payments of principal or interest due as a result of an election made under sections 6166, 6161 or 6163 and annual recertification requirements under section 6166
- Exempt organization business income tax and other payments submitted with Form 990-T
- Excise tax payments on investment income submitted with Forms 990-PF and 4720
No Extension for Payments Past July 15
Filing an extension for additional time to file past July 15, 2020 will NOT extend the time to pay federal income tax beyond July 15, 2020. Interest, penalties and additions on taxes due, but not paid by July 15, 2020, will begin to accrue on July 16, 2020.
Other Time Sensitive Actions Extended
Affected taxpayers have until July 15, 2020, to perform Specified Time Sensitive Actions, that are due to be performed on or after April 1, 2020, and before July 15, 2020. This relief includes the time for filing all petitions with the Tax Court, or for review of a decision rendered by the Tax Court, filing a claim for credit or refund of any tax, and bringing suit upon a claim for credit or refund of any tax.
This means taxpayers can file refund claims for 2016 until July 15, 2020, that would normally need to be filed by 4/15/20.
This notice does NOT provide relief for the time period for filing a petition with the Tax Court, or for filing a claim or bringing a suit for credit or refund if that period expired before April 1, 2020.
Certain Due Dates for Government Acts Postponed
This notice also provides the IRS with additional time to perform the time-sensitive actions. 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.
As a result of the postponement of the time to perform Time-Sensitive IRS Actions, the 30-day period following the last date for the performance of Time-Sensitive IRS Actions will be disregarded in determining whether the performance of those actions is timely.
This generally will affect persons:
- who are currently under examination;
- whose cases are with the Independent Office of Appeals; and
- who, during the period beginning on or after April 6, 2020, and ending before July 15, 2020, file written documents described in section 6501(c)(7) of the Code (amended returns) or submit payments with respect to a tax for which the time for assessment would otherwise expire during this period.
Continue to visit our COVID-19 Tax Resource Center for up-to-date information on how the outbreak may impact your tax filings, payments, and planning. We encourage you to share the page with others. Through this unprecedented series of events, you can count on The Tax Warriors® at Drucker & Scaccetti to help. Call on us for assistance.
Topics: Tax-exempt organizations, quarterly tax estimates, extended tax filing, Coronavirus Response Act, CARES Act, Notice 2020-23, federal filings, federal tax payment relief, Time-sensitive IRS actions