By Jennifer Kobylarz, CPA, MST
On March 20, 2020 Treasury Secretary Steven Mnuchin sent a Tweet out to the American people announcing that the April 15th tax deadline would be postponed until July 15, 2020. The IRS promptly issued Notice 2020-18 to corroborate this announcement. The new Notice supersedes Notice 2020-17 which postponed tax payments due on April 15th until July 15th.
The postponed due date applies to any “individual, trust, estate, partnership, association, company, or corporation” which has a federal income tax return due on April 15th. This is an automatic postponement and does not require an extension to be filed.
Under Notice 2020-17, tax payments of up to $1 million for individuals and $10 million for corporations could be postponed until July 15th; however, under Notice 2020-18, the dollar limitation is removed. Taxpayers may defer federal tax payments of any amount until July 15th when the tax return is now due.
Keep in mind that Notice 2020-18 only applies to federal income tax returns and payments that are due on April 15th for the tax year 2019 and for estimated income tax payments due April 15th for the 2020 tax year. The notice does not apply to any other type of federal income or information returns.
Our office will be closely monitoring State legislation to determine which states will be extending tax filings and payments.