The IRS has released Notice 2020-18, clarifying Treasury Secretary Munchin’s announcement yesterday on the federal tax deadline delay. The notice states the following:
- All 2019 income tax returns for individuals, trusts, estates, partnerships and corporations no longer need to file an extension on April 15, 2020. The new due date of those returns is automatically extended to July 15, 2020.
- All 2019 deferred income taxes originally due on April 15, 2020 are now due on July 15, 2020.
- All first quarter 2020 estimated taxes originally due on April 15, 2020 are now payable on July 15, 2020.
- All June 15, 2020 estimated tax payments are still due on June 15, 2020. Tax planning is required to discuss options available that were previously in place by the IRS.
- There will be no interest and no penalties applied to any of the above payments made by July 15, 2020 under IRS Notice 2020-18.
- There are no limitations to the payment amounts taxpayers can defer. The previous limitations of $1 million for individuals and $10 million for corporations no longer apply.
As of now, gift tax returns that are due on April 15, 2020, are not included in this relief for income tax filings and payments. Grassi will provide additional guidance if any clarification is issued in this area.
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