New IRS Guidance for Tax Filing and Payment Extensions

The IRS announced several weeks ago that the April 15 federal tax payment deadline and the federal tax filing deadline have been extended to July 15. This included tax payments due for 2019, as well as first quarter 2020 estimated payments. During this time, the IRS is waiving interest and penalties.

However, as we alerted you on Wednesday, uncertainty remains with regard to other tax filings (such as the non-profit Form 990s). Additionally, no guidance had been provided as of that time with regard to changes in the deadline for second quarter estimated tax payments.

Last night, the IRS issued further guidance via Notice 2020-23. This notice extended relief to estimated second quarter tax payments due June 15, 2020. This means that any individual or corporation that has a quarterly estimated tax payment due on or after April 1, 2020 and before July 15, 2020 can wait until July 15, 2020 to make that payment, without penalty.

The notice also indicated that anyone with a Federal tax filing or payment obligation that was due between April 1, 2020 and July 15, 2020 can now postpone these obligations until July 15, 2020, including non-profit Form 990s. This extension is automatic; taxpayers do not have to contact the IRS or file for extensions.

This is welcome news, as it clears up some lingering confusion. However, we anticipate additional IRS guidance to be forthcoming, and we will continue to keep you apprised of any further changes.

If you need assistance with this or any other tax or COVID-19 related matters, please contact your Kreischer Miller relationship professional or any member of our team. We also continue to update our COVID-19 Resource Center, which you can access here.

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