Alert: IRS Extends Due Dates for April 15, 2020 Federal Income Tax Returns and Payments to July 15, 2020

On the evening of March 20, 2020, the IRS issued Notice 2020-18 (the “Notice”), extending the deadlines for the payment of federal income taxes and the filing of federal income tax returns that would otherwise have been due on April 15, 2020 to July 15, 2020. The Notice expands upon relief provided by the IRS earlier last week by eliminating the dollar amount limits that had previously been imposed, and by extending the relief to return filing as well as making tax payments.

The Notice provides that for any person with a federal income tax payment or a federal income tax return due April 15, 2020, the due date for filing federal income tax returns and making federal income tax payments due April 15, 2020, is automatically postponed to July 15, 2020. No penalties or interest will be imposed on returns or payments pursuant to the Notice with respect to the period beginning on April 15, 2020 and ending on July 15, 2020. No extension request need be filed in order to take advantage of this postponement, and no dollar limit is imposed on the federal income taxes payment of which may be postponed.

The Notice applies solely with respect to federal income tax payments (including self-employment tax) and federal income tax returns due on April 15, 2020, in respect of a taxpayer’s 2019 taxable year, and federal estimated income tax payments (including self-employment tax) due on April 15, 2020 in respect of a taxpayer’s 2020 taxable year, and provides no extension for the payment or deposit of any other type of federal tax, or for the filing of any federal information return. Any extension with regard to state taxes and/or state returns will depend on guidance, if any, from each particular state.

For more information about this alert, please contact Seth Lebowitz at 212-573-8152 or your usual contact at Sadis & Goldberg LLP.