4-10-20 IRS Issues Notice 2020-23 To Expand Tax Relief

Posted on April 10, 2020

After providing relief with respect to Federal income and gift tax filings and payments as a result of the COVID-19 crisis, the IRS has issued Notice 2020-23 to provide more comprehensive tax relief. The Notice automatically postpones the deadline for most tax filings and payments until July 15, 2020.

Specifically, the Notice applies to the following tax returns and payments due on or after April 1, 2020 and before July 15, 2020:

  • Individual income tax payments and return filings on Form 1040 and certain other forms in the 1040 series;
  • Calendar or fiscal year corporate income tax payments and return filings and certain other forms in the 1120 series;
  • Calendar or fiscal year partnership return filings on Form 1065 and Form 1066;
  • Estate and trust income tax payments and return filings on Form 1041 and certain other forms in the 1041 series;
  • Estate and generation-skipping transfer tax payments and return filings on Form 706 and certain other forms in the 706 series;
  • Form 8971, Information Regarding Beneficiaries Acquiring Property from a Decedent, and any supplemental Form 8971;
  • Gift and generation-skipping transfer tax payments and return filings on Form 709 that are due on the date an estate must file Form 706 or Form 706-NA;
  • Estate tax payments of principal or interest due as a result of an election made under Internal Revenue Code Sections 6166, 6161, or 6163 and annual recertification requirements under Code Section 6166;
  • Exempt organization business income tax and other payments and return filings on Form 990-T; and
  • Excise tax payments on investment income and return filings on Form 990-PF and Form 4720;
  • Quartlerly estimated income tax payments for individuals, estates and trusts, corporations, and tax-exempt organizations, as calculated on or submitted with Forms 1040-ES, 1040-ES (NR), 1040-ES (PR), 1041-ES, 1120-W and 990-W, respectively.

In addition, the Notice automatically postpones the deadline for certain time-sensitive actions occurring on or after April 1, 2020 and before July 15, 2020 to July 15, 2020. For example, this relief applies to deadlines for filing a claim or suit for a tax credit or refund, Section 1031 45-day identification and 180-day exchange period deadlines, and the 180-day deadline to invest capital gains for deferral in a qualified opportunity fund.

For further details, you can find Notice 2020-23 here: https://www.irs.gov/pub/irs-drop/n-20-23.pdf.

Please contact your Woods Oviatt attorney regarding COVID-19 related issues.