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IRS Corna Virus/COVID-19 Tax Relief

Published March 23, 2020 by The Wooten Law Firm

IRS has extended the April 15 deadline for filing tax returns until July 15, according to Treasury Secretary Steven Mnuchin and IRS Notice 2020-18 posted by IRS on March 20. This is a change from a prior IRS announcement that IRS would delay on the payment deadline but not the filing deadline. On March 20 Mr. Mnuchin tweeted “At [President Trump’s] direction, we are moving Tax Day from April 15 to July 15. All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.”

IRS Notice 2020-18, the “official” IRS statement on the issue, clarifies Secretary Mnuchin’s comments and confirms that both the filing and payment deadlines are delayed for most taxes. Essentially, IRS has concluded that anyone with a Federal income tax payment or a Federal income tax return due April 15, 2020 is affected by the COVID-19 and is entitled to emergency tax relief. A “person” includes an individual, trust, estate, partnership, association, company or corporation as provided in section 7701(a)(1) of the Internal Revenue Code. Affected taxpayers will automatically have the due date for both making payment of Federal income tax, and Federal income tax return filing, pushed to July 15, 2020. In addition, affected taxpayers will not have to file Forms 4868 or 7004.

The relief provided in the notice 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, in respect of an affected taxpayer’s 2019 taxable year, and Federal estimated income tax payments (including payments of tax on self-employment income) due on April 15, 2020, for an affected taxpayer’s 2020 taxable year. The relief does not apply to other types of payments or deposits, including payroll tax payments and deposits. IRS will also waive interest, penalties and other additions to tax for failure to file the Federal income tax returns or to pay the Federal income tax postponed by the notice through July 15, 2020.

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