IRS Postpones 2019 Tax Day: New Date July 15th
March 25 2020
Treasury Secretary Steven Mnuchin (“Secretary”) announced on March 20, 2020 that US Tax Day will be moved to July 15th, 2020 in response to the ongoing COVID-19 pandemic.
Subsequently, the Internal Revenue Service released Notice 2020-18 (“Notice 20-18”) announcing formal guidance on the relief provided under section 7508A(a) of the Internal Revenue Code for Affected Taxpayers.
- The Secretary determined that any person with a Federal income tax payment or a Federal income tax return due April 15, 2020 is considered an “Affected Taxpayer”. The term “person” includes an individual, a trust, estate, partnership, association, company or corporation.
- Notice 20-18 provides that for an Affected Taxpayer, the due date for filing Federal income tax returns and making Federal income tax payments due April 15, 2020 (regardless of the amount owed) is automatically postponed to July 15, 2020.
- Accordingly, an Affected Taxpayer is not required to file Form 4868 or 7004 to benefit from the relief granted by the notice.
The relief provided in Notice 20-18 is solely with respect to Federal income tax payments (including payments of tax on self-employment income) and Federal income tax returns due on April 15, 2020, with respect to an Affected Taxpayer’s 2019 taxable year, and Federal estimated income tax payments (including payments of tax on self-employment income) due on April 15, 2020 for an Affected Taxpayer’s 2020 taxable year.
As a result of the relief provided in Notice 20-18, the period beginning on April 15, 2020, and ending on July 15, 2020, will be disregarded in the calculation of any interest, penalty, or addition to tax for failure to file the Federal income tax returns or to pay the Federal income taxes postponed by the notice. Accordingly, interest, penalties, and additions to tax will begin to accrue on July 16, 2020.
Notice 20-18 supersedes Notice 2020-17 which provided a relief solely for a 90-day deferral of income tax payments of up to $10 million for corporations and up to $1 million for individual taxpayers