We sent communication yesterday regarding the 90-day extension of the U.S. tax filing and tax payment deadline in the wake of the Coronavirus pandemic. The IRS recently issued new guidance in Notice 2020-181 on the tax filing and tax payment extension from April 15, 2020 to July 15, 2020.
Here are the details:
- The July 15, 2020 90-day extension applies to all taxpayers including individuals, trusts, estates, partnerships, associations and corporations with a federal income tax return or income tax payment due on April 15, 2020. There is no limitation on the amount of income tax that can be postponed until July 15, 2020.
- This is an automatic extension (taxpayers do not need to file extension request Forms 4868 or 7004 on April 15, 2020).
- The extension applies only to federal income tax returns and payments (including self-employment tax payments) due April 15, 2020, for 2019 tax years, and to estimated income tax payments due April 15, 2020, for 2020 tax years. The notice explicitly does not apply to any other type of federal tax or to any federal information returns.2
- Interest and penalties will begin to accrue July 16, 2020 for income taxes postponed under Notice 2020-18 that are not paid by July 15, 2020.
There is no definitive word yet on tax relief or extensions in New Jersey. We’ll continue to monitor developments and update you as information becomes available. Please reach out to Cg Tax, Audit & Advisory with questions or stay up-to-date by visiting our Cg COVID-19 Resource Center. Wishing you health and safety.