Updated March 30, 2020
In an effort to reduce the financial and administrative burden of filing taxes in the midst of the coronavirus emergency, last Friday the IRS issued Notice 2020-18 providing relief from the April 15 tax deadlines. The key points are:
- The due date for filing Federal income tax returns and making Federal income tax payments due April 15, 2020 is automatically postponed to July 15, 2020. This change applies to individuals, trusts, estates, partnerships, associations, companies and corporations. The tax payment delay is available for 1) Federal income tax payments (including payments of tax on self-employment income) for the taxpayer’s 2019 taxable year, and 2) Federal estimated income tax payments (including payments of tax on self-employment income) due on April 15, 2020, for the taxpayer’s 2020 taxable year. There has been no announcement delaying second quarter Federal estimated tax payments, so they continue to be due on June 15, 2020.
- Taxpayers do not have to file an extension application (Forms 4868 or 7004) to postpone to the July 15, 2020 date. There is no limitation on the amount of the payment that may be postponed. Taxpayers may file for an extension to submit their returns by October 15, with the extension filing and tax payments due by July 15.
- Taxpayers who are expecting refunds should file well before the July 15 deadline to accelerate their receipt of refunds.
- Many state taxing authorities have adopted the revised Federal due date for filing and payment, however, some states are still reacting. Massachusetts and New York have extended their April 15 payment and filing dates to July 15, 2020.
If you have questions about the tax laws, please reach out to the Fiduciary Trust tax department through your Investment Officer, or contact John Morey, Head of Client Service (617-292-6799 or firstname.lastname@example.org).
Click here to view the pdf version of this article.
Source: IRS, Notice 2020-18 (PDF), Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic.
The opinions expressed in this article are as of the date issued and subject to change at any time. Nothing contained herein is intended to constitute investment, legal, tax or accounting advice, and clients should discuss any proposed arrangement or transaction with their investment, legal or tax advisers.