The Treasury Department and Internal Revenue Service (in IRS Notice 2020-23) have expanded the extended filing deadlines authorized pursuant to IRS Notice 2020-18 and IRS Notice 2020-20 (which postponed certain federal gift and generation-skipping transfer tax return filings and payments) as additional relief from the COVID-19 emergency. As summarized in our prior alert, IRS Notice 2020-18 had postponed the due date for certain Federal income tax returns and payments from April 15, 2020 until July 15, 2020. IRS Notice 2020-20 postponed certain federal gift and generation-skipping transfer tax return filings and payments.
IRS Notice 2020-23 expands the relief to include additional returns, tax payments and other actions not covered under the prior Notices so that the extension of time to file tax returns and make tax payments until July 15, 2020 generally applies to all taxpayers (including individuals, trusts and estates, corporations and other non-corporate tax filers) having a normal filing or payment deadline occurring on or after April 1, 2020 and prior to July 15, 2020. The Notice also suspends associated interest, additions to tax, and penalties for late filing or late payment until July 15, 2020. No special action or filing is required for taxpayers to qualify for this automatic federal tax filing and payment relief.
The filing obligations and related tax payment obligations covered by the Notice include filing and payments associated with the following:
- Form 1040, U.S. Individual Income Tax Return, 1040-SR, U.S. Tax Return for Seniors, 1040-NR, U.S. Nonresident Alien Income Tax Return, 1040-NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents, 1040-PR, Self-Employment Tax Return – Puerto Rico, and 1040-SS, U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico);
- Form 1120, U.S. Corporation Income Tax Return, 1120-C, U.S. Income Tax Return for Cooperative Associations, 1120-F, U.S. Income Tax Return of a Foreign Corporation, 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation, 1120-H, U.S. Income Tax Return for Homeowners Associations, 1120-L, U.S. Life Insurance Company Income Tax Return, 1120-ND, Return for Nuclear Decommissioning Funds and Certain Related Persons, 1120-PC, U.S. Property and Casualty Insurance Company Income Tax Return, 1120-POL, U.S. Income Tax Return for Certain Political Organizations, 1120-REIT, U.S. Income Tax Return for Real Estate Investment Trusts, 1120-RIC, U.S. Income Tax Return for Regulated Investment Companies, 1120-S, U.S. Income Tax Return for an S Corporation, and 1120-SF, U.S. Income Tax Return for Settlement Funds (Under Section 468B);
- Form 1065, U.S. Return of Partnership Income, and Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return;
- Form 1041, U.S. Income Tax Return for Estates and Trusts, 1041-N, U.S. Income Tax Return for Electing Alaska Native Settlement Trusts, and 1041-QFT, U.S. Income Tax Return for Qualified Funeral Trusts;
- Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return, 706-A, United States Additional Estate Tax Return, 706-QDT, U.S. Estate Tax Return for Qualified Domestic Trusts, 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations, 706-GS(D), Generation-Skipping Transfer Tax Return for Distributions, and 706-GS(D-1), Notification of Distribution from a Generation-Skipping Trust (including the due date for providing such form to a beneficiary);
- Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, filed pursuant to Revenue Procedure 2017-34;
- Form 8971, Information Regarding Beneficiaries Acquiring Property from a Decedent and any supplemental Form 8971, including all requirements contained in IRC section 6035(a);
- Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return that are due on the date an estate is required to file Form 706 or Form 706-NA;
- Estate tax payments of principal or interest due as a result of an election made under sections 6166, 6161, or 6163 and annual recertification requirements under IRC section 6166;
- Form 990-T, Exempt Organization Business Income Tax Return (and proxy tax under IRC section 6033(e));
- Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Trust Treated as Private Foundation, and excise tax payments and return filings on Form 4720, Return of Certain Excise Taxes under Chapters 41 and 42 of the Internal Revenue Code; and
- Form 990-W, Estimated Tax on Unrelated Business Taxable Income for Tax-Exempt Organizations, 1040-ES, Estimated Tax for Individuals, 1040-ES (NR), U.S. Estimated Tax for Nonresident Alien Individuals, 1040-ES (PR), Estimated Federal Tax on Self Employment Income and on Household Employees (Residents of Puerto Rico), 1041-ES, Estimated Income Tax for Estates and Trusts, and 1120-W, Estimated Tax for Corporations.
IRS Notice 2020-23 also provides relief with respect to certain “Specified Time-Sensitive Actions” that are due to be performed on or after April 1, 2020, and before July 15, 2020, such as compliance with the 45-day identification period and 180-day replacement periods in IRS section 1031 like-kind exchanges, elections made in connection with qualified opportunity zone investments, filing petitions with the Tax Court, and bringing claims for refunds of tax. Under the notice, taxpayers will have until July 15, 2020 to take such actions.
The Notice also gives the IRS additional time to perform certain time-sensitive actions during this period and extends the application date to participate in the Annual Filing Season Program.
Additional information has been provided by the IRS on this filing and payment deadline guidance on a Q&A page on the IRS website.
The IRS has also set up a special Coronavirus Tax Relief page on IRS.gov to provide updated tax information and address tax issues related to the COVID-19 virus.