In a previous Client Alert, which can be accessed here, we discussed the specifics of Notice 2020-17. On March 20, 2020 the U.S. Treasury Department issued Notice 2020-18 (the “New Notice“), which supersedes Notice 2020-17. The primary importance of the New Notice is that it extends the Federal income tax return filing due date, whereas the first notice only extended the time for making Federal income tax payments.
U.S. Treasury Secretary Steve Mnuchin has determined that every person with a Federal income tax payment or Federal income tax return due April 15, 2020 is affected by the COVID-19 emergency for purposes of the Notice (the “Affected Taxpayer“). The term “person” includes an individual, a trust, estate, partnership, association, company or corporation. Under the New Notice, the due date for filing Federal income tax returns and making Federal income tax payments due April 15, 2020 is postponed until July 15, 2020. There is no limit on the amount of payments that are postponed under the New Notice. Affected taxpayers will not be required to file Form 4868 or Form 7004 to be afforded a filing deadline extension under the New Notice.
Relief under the New Notice applies solely to Federal income tax payments (including self-employment) and Federal income tax returns due on April 15, 2020 in respect of an Affected Taxpayer’s 2019 taxable year, and Federal estimated income tax payments (including self-employment) due on April 15, 2020 for an Affected Taxpayer’s 2020 taxable year.
The calculation of any interest, penalty, or addition to tax for failure to file Federal income tax returns or to pay the Federal income taxes postponed by the Notice will be disregarded for the period beginning on April 15, 2020, and ending
For additional information on recent tax developments, please contact Jonathan P. Brose (212-574-1615), James C. Cofer (212-574-1688), Ronald P. Cima (212-574-1471), Peter E. Pront (212-574-1221), Daniel C. Murphy (212-574-1210), Brett R. Cotler (212-574-1269) or Tyler J. Combest (212-574-1472).
Seward & Kissel has established a COVID-19 Resource Center on our web site to access all relevant alerts that we distribute.