In a flurry of activity on Thursday, the IRS issued a News Release, two Notices and two Revenue Procedures providing guidance to taxpayers on how to apply for relief offered by the CARES Act — as well as administrative relief granted by the IRS under its existing authority.
The IRS previously extended the due dates for returns and tax payments otherwise due on April 15, 2020 to July 15, 2020. The new guidance extends that relief to more federal tax filings and payments due on or after April 1, 2020 and before July 15, 2020. These are now due on July 15, 2020.
The affected filings and payments include:
- 2019 personal income tax returns
- First and second quarter personal income tax estimates for 2020 which were originally due April 15 and June 15, 2020
- Calendar year or fiscal year corporate income tax returns including those for coops, REITs, Regulated Investment Companies and Foreign Corporations
- Calendar year or fiscal year partnership returns
- Estate and trust tax returns and payments
- Estate tax and interest payments due as a result of a deferral election under Code Section 6166, 6161 or 6163
- 2019 gift and generation skipping tax returns
- Exempt Organization Business Income Tax returns (Form 990-T) including 2020 estimated payments
- Tax payments on Investment Income for Private Foundations (Form 990-PF)
Americans who work and live abroad are also eligible for this relief.
Taxpayers do not need to file anything to take advantage of these extended filing and payment deadlines. No penalties or interest will be added for payments made by July 15. Taxpayers needing additional time to file after July 15 should file the appropriate extension form for the return to be filed. At this time, the extension cannot go past the original statutory or regulatory extension date.
Relief was also granted for certain time-sensitive actions, specifically for taxpayers in the process of completing 1031 exchanges, conversions under Section 1033 or Opportunity Zone Investments. Any such action, which by law had to be completed on or after April 1, 2020 and before July 15, 2020, will now be considered timely if completed by July 15, 2020. The filing deadlines for Tax Court petitions were similarly delayed.
The Service also issued guidance on making elections relative to the new net operating loss provisions, as well as new rules for amending partnership returns.
Along with this relief, the Service introduced a tool on its website that will allow those who don't normally file tax returns to submit their basic information so that they can receive their stimulus checks more quickly.
Finally, the IRS announced that since all Service Centers are now closed, no paper filed returns are being processed. This means that refunds or correspondences related to such returns will be delayed until the Service Centers reopen.
As always, we hope you and those with whom you are close remain safe and healthy.
Please contact your Friedman tax professional with any questions or for further information on recent IRS guidance and COVID-19 relief programs.