On March 20, 2020, Treasury Secretary Mnunchin announced moving Tax Day from April 15 to July 15, following which the IRS issued Notice 2020-18 which automatically extends Federal income tax filing from April 2020, to July 15, 2020.
As a result of the postponement the period beginning on April 15, 2020 and ending on July 15, 2020 will be disregarded in the calculation of any interest, penalty, or addition to tax for failure to file the Federal income tax returns or to pay Federal income taxes postponed by the Notice. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax.
IRS also confirmed Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief. There is no limitation on the amount of the payment that may be postponed. Interest, penalties, and additions to tax with respect to such postponed Federal income tax filings and payments will begin to accrue on July 16. 2020.
Individual taxpayers who need additional time to file beyond the July 15 deadline, can request a filing extension by filing Form 4868 and Businesses who need additional time must file Form 7004.
Please note, the postponement only applies to income tax return due on 4/15 (including first quarter estimated payments due on 4/15) and does not apply for 2nd quarter estimated payments (due on 6/15) or for calendar year-end tax exempt organizations that need to be filed by 5/15 (unless extension filed by due date).
A copy of the specific announcement can be found at https://www.irs.gov/newsroom/tax-day-now-july-15-treasury-irs-extend-filing-deadline-and-federal-tax-payments-regardless-of-amount-owed
We will continue to provide updates as more information becomes available. Should you have any questions, please reach out to a Hertzbach advisor today.