Important Limits on IRS Tax Deadline Extension

March 23, 2020Alerts

Although IRS Notice 2020-18 postponed this year's tax filing deadline to July 15, it is important to note that it extends only income tax and self-employment filings and payments. It does not extend the time to file or pay employment taxes, estate taxes, gift taxes, excise taxes, information returns or any other federal tax or user fee filings.

The time to respond to IRS notices also has not been extended. Taxpayers should review all tax notices and comply with the deadlines specified in the notice. Failure to do so could waive important rights such as the right to a collection due process proceeding.

The IRS is encouraging taxpayers who are due a refund to go ahead and file. Refunds should arrive within 21 days of filing according to IRS.gov.

In Notice 2020-18, the IRS postponed the federal income tax filing due date from April 15, 2020 to July 15, 2020. Taxpayers also have until July 15, 2020 to pay income taxes without incurring penalties or interest, with no limit as to the amount of tax that may be deferred (previous IRS guidance, Notice 2020-17 limited the amount of tax that could be deferred). These postponements do not require a taxpayer to file an extension. However, if taxpayers are unable to file by July 15 they should request an extension.

The extension to July 15, 2020 also applies to Federal estimated income tax payments applied to the 2020 tax year (including payments of tax on self-employment income) normally due on April 15, 2020. However, the Notice does not provide guidance as to the June 15, 2020 estimated tax payment date.

The extension to file and pay applies to individuals, trusts and estates, corporations and other non-corporate income tax filers as well as those who pay self-employment tax.

Finally, while the U.S. Tax Court is closed until further notice, the court did not extend deadlines for filing petitions, notices of appeal or any other court-related document. In its press release, the court reminded taxpayers that the timeliness of a Petition or Notice of Appeal is determined by the United States Postal Service’s postmark or the delivery certificate of a designated private delivery service. The court’s mail will be held for delivery until the court reopens.

As to state tax filing and payment relief, please contact your Fox contact attorney for the latest updates applicable to your state. The information above is current as of March 22, 2020.