In response to the COVID-19 pandemic, the Department of the Treasury and the Internal Revenue Service issued Notice 2020-18 (superseding Notice 2020-17). Notice 2020-18 automatically postpones the April 15, 2020, due date for filing federal income tax returns and making federal income tax payments to July 15, 2020.
This automatic postponement:
- applies to all individuals and business entity taxpayers with a federal income tax payment or federal income tax return due April 15, 2020;
- results in an automatic extension; does not require a taxpayer to file (or for the IRS to accept) an extension request;
- is not limited in respect of the amount of the income tax payment that may be postponed;
- applies only to (i) federal income tax payments and federal income tax returns due on April 15, 2020, for a taxpayer’s 2019 taxable year, and (ii) federal estimated income tax payments due on April 15, 2020, for the taxpayer’s 2020 taxable year; and
- is free of interest and penalties on tax payments postponed by the notice; interest and penalty accrual on such unpaid amounts will resume effective July 16, 2020.
Many states are also providing taxpayer relief by extending the due date for the filing of tax returns and payment of taxes. For information on the deferral of state income tax filings and payments, please click here.