On March 20, the IRS released a notice providing guidance for taxpayers with respect to the extension of time to file tax returns and to make certain tax payments. The details are as follows:
- The due date for filing federal income tax returns and making federal income tax payments due April 15, 2020 is automatically postponed to July 15, 2020
- Payments of tax on self-employment income are included in the relief
- Taxpayers do not have to file a request for extension of time to file their returns to be eligible for the relief
- No extension is yet provided for second or third quarter estimated tax payments
- 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
Unlike the prior guidance issued Wednesday March 18th, there is no limit to the amount of tax payments that may be deferred.
The notice specifically states that it applies to individuals, trusts, estates, partnerships, associations or corporations. Visit here for IRS filing and payment deadlines Q&A.
It is expected that states will follow the federal lead. So far, New York has indicated its intention to do so and the Connecticut Department of Revenue Services has adopted the federal extended dates for filing and payment as well as the Commonwealth of Pennsylvania for personal income tax only at this time. We have not yet heard from New Jersey. California, among other major states, has already taken action independently. Click here to access the latest guidance from state tax authorities.
The Coronavirus Aid, Relief, and Economic Security Act or “CARES Act”, currently before the Senate, contains major tax relief provisions that will provide taxpayers with significantly greater relief. We continue to monitor these and other relief efforts and will report on any new developments.
We at Friedman hope that you and your loved ones continue to stay safe and well.