Just a few days after the original guidance, Notice 2020-17 superseded, was issued by the U.S. Treasury Department, a new notice, Notice 2020-18, was released on March 21 to provide expanded relief to taxpayers affected by the ongoing coronavirus pandemic.
The notice officially confirms the announcement made by U.S. Treasury Secretary Steven Mnuchin early Friday morning. The due date for filing and making payments or federal income tax returns is now automatically extended to July 15. The notice has been expanded to include relief for an individual, a trust, estate, partnership, association, company or corporation. The taxpayers are also not required to file the extension Forms 4868 or 7004 to get this relief.
This notice restates the relief provided in Notice 2020-17 for tax year 2020 Estimated Tax Payments, including payments of tax on self-employment income, due April 15. The first quarter tax payment deadline is now moved to July 15, as well.
One of its most notable components, the notice fully removes the caps on the postponed payment amounts. There is no longer a limitation on the amount of payment that can be deferred.
Aronson expects many states to conform to the federal filing and payment extensions. However, due to states having different filing and payment due dates under normal circumstance, the expectation is that there will be varying responses amongst the states.
Our team will continue to monitor this situation and keep you informed about any relevant updates that impact your business. More tax-related news can be found on our service page. For help guiding your business through the coronavirus outbreak, visit our COVID-19 resource hub