The IRS continues to process electronic tax returns, issue direct deposit refunds and accept electronic payments while simultaneously granting additional, broad tax filing and payment deadline Covid-19 relief to all Taxpayers that have a filing or payment deadline falling on or after April 1, 2020, and before July 15, 2020.
What is New
IRS Notice 2020-23 (update to Notice 2020-18) applies to all taxpayers that have a filing or payment deadline falling on or after April 1, 2020, and before July 15, 2020. This includes individuals, trusts, estates, corporations, and other noncorporate tax filers, and Americans that live and work abroad. The Notice:
- Disregards (by the IRS) calculation of any interest, penalty, or addition to tax for failure to file the forms.
- Grants automatic relief (Taxpayers do not have to file extensions or send documents to the IRS to obtain relief).
- Postpones the June 15, 2020 deadline for estimated tax payments to July 15.
- Extends to July 15, 2020 the deadline for filing a 2016 tax return to claim a refund (normally April 15).
- Postpones to July 15, 2020, installment payments under Sec. 965(h): Installment payments of the Sec. 965 transition tax due on or after April 1, 2020, and before July 15, 2020.
- Provides Americans who live and work abroad until July 15, 2020, to file their 2019 federal income tax return and pay any tax due.
- This relief is automatic
- Taxpayers do not have to call the IRS or file any extension forms, or send letters or other documents to receive this relief.
- Taxpayers who need additional time to file may choose to file the appropriate extension form by July 15, 2020, to obtain an extension to file their return, but the extension date may not go beyond the original statutory or regulatory extension date.
For Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return) may be filed by July 15, 2020, to extend the time to file an individual income tax return, but that extension will only be to October 15, 2020.
That extension will not extend the time to pay federal income tax beyond July 15, 2020.
Consult your Tax Specialist.