COVID-19 Update: IRS Provides Guidance on Filing Extensions
March 23, 2020
Clients and Friends of Topel Forman,
On Friday, March 20th, the IRS issued Notice 2020-18 that expanded on the tax relief measures announced earlier last week in Notice 2020-17. Notice 2020-18 provides the following updated guidance:
Taxpayers now have the ability to defer the filing of their 2019 Federal income tax returns or extensions until July 15th. There is no need to file an extension by April 15th. If taxpayers are unable to file by July 15th, an extension will be due at that time to allow additional time until October 15th to file their 2019 tax returns.
The $10,000,000 (for corporations) and $1,000,000 (for other non-corporate taxpayers) limitations on the amount of deferred payments no longer applies. Taxpayers can defer any amount of payment due April 15th until July 15th without penalty or interest.
Congress is also working on separate legislation related to the COVID-19 pandemic that is expected to further impact your 2019 and 2020 tax payment and filing requirements. We are monitoring the progress of new legislation and will update you as additional guidance becomes available.
Please note that many states have not yet adopted the Federal payment and deferral guidance; however, additional state guidance is anticipated in the coming week. We will continue to inform you of these developments and advise you if any state tax payments need to be paid by April 15th.
While the April 15th Federal payment and filing deadline has been delayed until July 15th, we are still encouraging our clients to send us their tax documents as soon as possible, even if not complete, so that we can continue to process your tax returns in a timely manner. Your documents can be uploaded to the client portal at https://topelforman.com/client-portal/. If you are having trouble accessing your portal, please contact firstname.lastname@example.org for additional assistance.
If you have any questions please do not hesitate to contact your Topel Forman professional.
Topel Forman LLC