The U.S. Treasury Department recently issued Notice 2020-23, which amplifies Notices 2020-17, 2020-18 and 2020-20. As we previously discussed, the U.S. Treasury Department in Notices 2020-17 and 2020-18 provided the following guidance for tax filings and payments.
While Notices 2020-17, 2020-18 and 2020-20 were helpful with immediate guidance, a number of questions remained outstanding. Notice 2020-23 provides clarification and additional guidance in a number of areas. In general, Notice 2020-23 provides that the deadline for taxpayers with U.S. federal tax filing or payment obligations due to be performed (originally or pursuant to a valid extension) on or after April 1, 2020, and before July 15, 2020, is automatically extended to July 15, 2020. Specifically, Notice 2020-23 states that the filing and payment obligations with respect to income tax returns and income taxes are eligible for relief are the following:
In addition to the foregoing extensions with respect to income tax returns and income tax payments, Notice 2020-23 also provides some extensions for (i) estates and trusts, (ii) tax-exempt organizations and (iii) certain excise taxes.
The due dates for filing and payment obligations for taxpayers eligible for relief are automatically postponed to July 15, 2020, and there is no need for a taxpayer to file any forms or otherwise contact the Internal Revenue Service in order to have their due date postponed to July 15, 2020.
Taxpayers requiring additional time to file beyond July 15, 2020, may file the appropriate extension, but such extension will not go beyond the original statutory or regulatory extension date. While a taxpayer can obtain an extension to file its tax return, such extension will not extend the time for a taxpayer to pay any applicable tax. For example, while an individual may extend the filing of its U.S. federal income tax return beyond July 15, 2020, such extension will only go to October 15, 2020, and the individual will still be required to pay any tax owed by July 15, 2020.
While most states provided an extension similar to the extension provided by Notice 2020-18, it is unclear whether states will provide updated guidance in response to Notice 2020-23.
Ed Buchholz is a member of Thompson Coburn’s Tax group. David Kaufman is a member of Thompson Coburn’s Corporate & Securities Practice group.
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