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United States – UPDATE: Treasury Announces Filing Extension

United States – UPDATE: Treasury Announces Filing Exten

As reported in Flash Alert 2020-081, on March 20, 2020 the U.S. Treasury Secretary Steven Mnuchin announced an extension of time to file U.S. Federal income tax returns. The U.S. Department of the Treasury and Internal Revenue Service (IRS) have now issued Notice 2020-18, which provides additional details on this extension.

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As reported in Flash Alert 2020-081, on March 20, 2020 the U.S. Treasury Secretary Steven Mnuchin announced an extension of time to file U.S. Federal income tax returns.  The U.S. Department of the Treasury and Internal Revenue Service (IRS) have now issued Notice 2020-18, which provides additional details on this extension.1  

WHY THIS MATTERS

Due to the disruption caused by the COVID-19 emergency, all taxpayers now have until July 15, 2020 to file Federal income tax returns and make certain Federal income tax payments.

Notice 2020-18

The Notice, which expands on and supersedes the relief provided in Notice 2020-17,2 postpones the due date for filing Federal income tax returns and making Federal income tax payments from April 15, 2020 to July 15, 2020 for all taxpayers.  There is no limitation on the amount of the payment that may be postponed.  The extension is automatic, so taxpayers do not need to file Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return or Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns to request the extension.

The relief provided applies to:

—  Federal income tax payments (including payments of tax on self-employment income) due on April 15, 2020 for a taxpayer’s 2019 tax year,

—  Federal income tax returns due on April 15, 2020 for a taxpayer’s 2019 tax year

—  Federal estimated income tax payments (including payments of tax on self-employment income) due on April 15, 2020 for a taxpayer’s 2020 tax year.

No extension is provided for the payment or deposit of any other type of Federal tax, or for the filing of any Federal information return.

The period beginning on April 15, 2020 and ending on July 15, 2020 is disregarded in the calculation of any interest, penalty, or addition to tax for failure to file the Federal income tax returns or pay the Federal income taxes postponed under Notice 2020-18.  Interest, penalties, and additions to tax with respect to postponed Federal income tax filings and payments will begin to accrue on July 16, 2020.

 

FOOTNOTES

1  IRS Notice 2020-18 (PDF 65 KB).

2  See Flash Alert 2020-071 for additional information.

The above information is not intended to be "written advice concerning one or more Federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230 as the content of this document is issued for general informational purposes only.

 

The above information is not intended to be "written advice concerning one or more Federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230 as the content of this document is issued for general informational purposes only.

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