IRS Notice Regarding Filing Deadline Postponement

A notice issued by the IRS has now made official the March 20th announcement by the Treasury Secretary that postpones until July 15, 2020, the filing date for 2019 Federal income tax returns and 2020 Federal income tax estimates that would otherwise be due on April 15, 2020. This notice also clarifies and confirms that taxpayers eligible for the postponement include an individual, trust, estate, partnership, association, company or corporation. Taxpayers do not have to file an extension in order to obtain this relief.

The relief provided is available solely with respect to Federal income tax payments (including payments of tax on self-employment income) and Federal income tax returns due on April 15, 2020, for the 2019 tax year, and Federal estimated income tax payments (including payments of tax on self-employment income) due on April 15, 2020, for the 2020 tax year.

No extension is provided in the notice for the payment or deposit of any other type of Federal tax or for the filing of any Federal information return. As a result of the postponement of the due date for filing Federal income tax returns and making Federal income tax payments from April 15, 2020 to July 15, 2020, the period beginning on April 15, 2020 and ending on July 15, 2020, will be disregarded in the calculation of any interest, penalty or addition to tax for failure to file the Federal income tax returns or to pay the Federal income taxes postponed by this notice. Interest, penalties and additions to tax with respect to such postponed Federal income tax filings and payments will begin to accrue on July 16, 2020.

There is no limit on the amount of tax payments that can be postponed. The IRS’ previous notice put limits on the amount of tax payments that could be postponed from April 15 until July 15. The new notice amends that rule and provides no limitation on the amount of the payment that may be postponed.

If you have any questions, please contact your Melton & Melton team member for additional guidance.