Amidst backlash from tax preparers, trade groups, and lawmakers related to the filing extension under the original notice, the IRS announced on Friday a new guidance – Notice 2020-18, which supersedes Notice 2020-17 released earlier this week. Because of the expansion of relief provided in this notice and the fact that Notice 2020-17 is superseded, any phone calls regarding Notice 2020-17 that have not already been returned by the IRS will not be returned.
The newly released guidance pushes the tax filing deadline to July 15, aligning the due date with the extended deadline for payments. The release of Friday’s guidance gives filers and advisers coping with the COVID-19 pandemic more time to prepare tax returns. It also permits unlimited tax payment deferral for individuals and businesses for an extra three months.
- Notice 2020-18 supersedes and expands upon earlier guidance that gave taxpayers extra time to pay their taxes but not to file.
- Notice 2020-17 allowed individuals to defer up to $1 million and corporations up to $10 million of tax payment without interest and penalties. The new guidance doesn’t contain a cap.
The driving factor behind Friday’s notice was to avoid confusion for taxpayers if alignment had not been brought between filing and payment deadlines.
ATKG’s tax professionals remain committed to staying up to date on the sweeping changes occurring daily. We are devoted to ensuring you receive the timely and insightful information you have come to know and trust from our professionals. To view other trending news released by ATKG this week, please click on the links below.
ATKG Trending News
- BREAKING NEWS: Mnuchin Announces Extension for April 15th Tax Deadline, March 20, 2020
- Treasury Department Expands Tax Payment Extension to Include 2020 First Quarter Payments, March 19, 2020
- COVID-19 Update From ATKG, March 17, 2020
Diane White is a Senior Tax Manager for ATKG. She is a Magna Cum Laude graduate from The University of Texas at San Antonio and brings years of accounting experience and a deep knowledge of the real estate, construction, retail, and professional services industries to ATKG. For further information on this topic or other tax questions please contact Diane White or a member of our Tax practice at 210.733.6611 or firstname.lastname@example.org.