More Tax Deadlines Extended by IRS

In a notice (Notice 2020-23) released on April 9, 2020, the IRS substantially broadened the deadlines being postponed as a result of the COVID-19 pandemic.  The highlights of the Notice are as follows:

• The extended July 15, 2020 tax filing and payment deadline generally now applies to all taxpayers having a filing (original or pursuant to a valid extension) or payment due date on or after April 1, 2020 and before July 15, 2020. This applies to individuals, trusts, estates, corporations and other non-corporate tax filers.  The period beginning on April 1, 2020 and ending on July 15, 2020 will be disregarded in calculating any interest, penalty, or addition to tax for failure to file or make tax payments postponed under the Notice.  Interest, penalties and additions to tax will begin to accrue on July 16, 2020. 
• Extensions beyond the July 15, 2020 tax filing deadline must be filed on the appropriate extension form by July 15 (Form 4868 in the case of individuals and Form 7004 in the case of businesses). The extension date may not go beyond the original statutory or regulatory extension date (for example, October 15, 2020 in the case of individuals). 
• Estimated income taxes due on June 15, 2020 are extended to July 15, 2020. Accordingly, any individual or corporation that has a quarterly estimated tax payment due on or after April 1, 2020, and before July 15, 2020, is not required to make payment until July 15, 2020, without penalty.
• For 2016 income tax returns, the normal April 15, 2020 deadline to claim a refund is also extended to July 15, 2020.
• The time for filing all petitions with the United States Tax Court, filing a claim for credit or refund of any tax and for bringing suit upon a claim for credit or refund of any tax – if due to be performed on or after April 1, 2020 and before July 15, 2020 – is delayed until July 15, 2020. The Notice does not provide relief if the time for filing such a petition or claim or bringing suit expired before April 1, 2020. 

Specified Filing and Payment Obligations

The Notice identifies specific forms and tax payment obligations that are entitled to the July 15, 2020 extended filing due date.  They include the following:

• Individual income tax payments and return filings -- Form 1040, Form 1040-SR, Form 1040-NR, Form 1040-NR-EZ, Form 1040-PR, Form 1040-SS
• Calendar year or fiscal year corporate income tax payments and return filings – Form 1120, Form 1120-C, Form 1120-F, Form 1120-FSC, Form 1120-H, Form 1120-L, Form 1120-ND, Form 1120-PC, Form 1120-POL, Form 1120-REIT, Form 1120-RIC, Form 1120-S, Form 1120-SF
• Calendar year or fiscal year partnership return filings – Form 1065, Form 1066 (U.S. Real Estate Mortgage Investment Conduit (REMIC))
• Estate and trust income tax payments and return filings – Form 1041, Form 1041-N, Form 1041-QFT
• Estate and generation-skipping transfer tax payments and return filings – Form 706, Form 706-NA, Form 706-A, Form 706-QDT, Form 706-GS(T), Form 706-GS(D), Form 706-GS(D-1)
• Form 706 filed pursuant to Revenue Procedure 2017-34 (Portability Election) – Form 706
• Information regarding beneficiaries acquiring property from a decedent – Form 8971
• Exempt organization business income tax and other payments and return filings – Form 990-T
• Excise tax payments on investment income and return filings – Form 990-PF, Form 4720
• Quarterly estimated income tax payments calculated or submitted with the following forms: Form 990-W, 1040-ES, Form 1040-ES, Form 1040-ES (PR), Form 1041-ES, Form 1120-W
• Installment payments under IRC Sec. 965(h) [Transition Tax] due on or after April 1, 2020 and before July 15, 2020

Please note the relief includes not just the filing of the forms, but also includes schedules, returns and other forms that are attached to the enumerated forms, or are required to be filed by the due date of the enumerated forms.  The Notice provides as examples: Schedule H and Schedule 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 form (or attachment to a specified form) are treated as timely filed if filed on such form or attachment, as appropriate, on or before July 15, 2020. 

In addition, by reference to a 2018 revenue procedure, the Notice incorporates into its coverage over 250 specified time-sensitive actions, including the filing of numerous forms (for example, Forms 990, 4466, 8804, 8805, 8813 and 8865).  Here again, taxpayers have until July 15, 2020 to perform all specified tax sensitive actions that are due to be performed on or after April 15, 2020, and before July 15, 2020. 

EisnerAmper will continue to keep you informed of relevant new developments regarding the tax implications of the coronavirus pandemic.