Legal Alert

IRS Notice Provides Guidance Regarding Numerous Filing and Payment Extensions Related to COVID-19

April 10, 2020

As we noted in our alerts on March 19 (here) and March 20 (here), Treasury extended certain income tax filing and payment dates to July 15, 2020. On April 9, in Notice 2020-23 (available here), many more deadlines have been extended. Payment obligations for specified federal taxes (Specified Payments) and filing obligations for specified federal tax returns or other IRS Forms (Specified Forms) are extended to July 15, 2020, if they were due, or pursuant to a valid extension were due, on or after April 1, 2020, and before July 15, 2020. The filing and payment relief is automatic; taxpayers do not have to file any forms to claim this relief. To claim a filing extension beyond July 15, 2020, however, taxpayers must file valid extension requests. Payment extensions are not granted past July 15, 2020. If a taxpayer files or pays after July 15, 2020, interest and penalties accrue from July 15, 2020.

Specified Forms include:

  1. For Individuals—IRS Forms 1040, 1040-SR, 1040 NR, 1040-NR-EZ, 1040-PR, and 1040-SS;
  2. For Corporations—IRS 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;
  3. For Partnerships—IRS Forms 1065;
  4. For REMICs—IRS Form 1066;
  5. For Estates and Trusts—IRS Forms 1041, 1041-N, 1041-QFT, 706 as well as the 706 filed pursuant to Rev. Proc. 2017-24), 706-NA, 706-A, 706-QDT, 706-GS(T), 706-GS(D), 706-GS(D-1), 8971 (and any supplemental IRS Form 8971), and 709 (that is due on the date that an estate is required to file IRS Form 706 or 706-NA); and
  6.  For Exempt Organizations—IRS Form 990-T, 990-PF, and 4720.

All payments due with respect to the foregoing returns are now due on July 15, 2020. In addition, estate tax payments of principal or interest due as a result of an election made under Internal Revenue Code (IRC) Sections 6166, 6161, or 6163 also are due on July 15, 2020. 

All quarterly estimated tax payments that would be due with an IRS Form 1040-ES, 1040-ES (NR), 1040-ES (PR), 1041-ES0, 1120-W, and 990-W are now due on July 15, 2020. This Notice fixes the anomaly that existed under the earlier Treasury Notices, whereby the second quarter estimates for individuals are due on June 15, before the first quarter estimates that are due on July 15—now both estimates are due on July 15, 2020. Installment payments under IRC Section 965(h) due on or after April 1, 2020 and before July 15, 2020 now also are due on July 15, 2020.

Other deadlines that came due on or after April 1, 2020 and before July 15, 2020 also were extended to July 15, 2020 including:

  1. QOZ Investments—The 180-day period for a taxpayer to invest amounts equal to capital gains in a qualified opportunity fund;
  2. Tax Court petitions;
  3. IRS Forms 990 for 2019 for calendar year filers (originally due May 15, 2020);
  4. Filing for or bringing suit on a claim for Claim for Refund; and
  5. Elections made on any Specified Forms will be timely if made on or with such Specified Form on or before July 15, 2020.

In addition to the all of the items listed above, each of the time sensitive actions listed in the 139 page Revenue Procedure 2018-58 (available here) also are extended to July 15. Among the extensions included in this Revenue Procedure are extensions for deadlines required by the IRC in connection with an IRC Section 1031 like-kind exchange.

Not to be left out, the Notice extends not only certain deadlines that apply to taxpayers but also certain deadlines that apply to the IRS. Treasury extended for 30 days actions the IRS must take in connection with deadlines that the apply (i) for the IRS to assess a taxpayer that is currently under examination, (ii) with respect to a matter at IRS Appeals, or (iii) with respect to persons who file amended returns on or after April 6, 2020 and before July 15, 2020 or submit payments with respect to a tax for which the time for assessment would expire on or after April 6, 2020 and before July 15, 2020.

For questions about this relief or other tax issues, contact a member of the Ballard Spahr Tax Group.

Copyright © 2020 by Ballard Spahr LLP.
(No claim to original U.S. government material.)

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, including electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of the author and publisher.

This alert is a periodic publication of Ballard Spahr LLP and is intended to notify recipients of new developments in the law. It should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own attorney concerning your situation and specific legal questions you have.

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