On Friday March 20th, 2020, the IRS published Notice 2020-18 (the First Notice). The First Notice provided limited tax relief for persons subject to U.S. taxation, stating that “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” and that it is not necessary for such taxpayers to file for an extension on Forms 4868 or 7004. The First Notice further provided that such relief is “available solely with respect to Federal income tax payments (including payments of tax on self-employment income) and Federal income tax returns due on April 15, 2020 [for the taxpayer’s 2019 tax year, as well as estimated tax payments relating to the 2020 tax year].” Importantly, the First Notice explicitly provided that “[n]o extension is provided in this notice for the payment or deposit of any other type of Federal tax, or for the filing of any Federal information return.” Accordingly, the First Notice did not relieve taxpayers from filing information returns, including via the IRS FIRE system.
However, Notice 2020-23, which amplified Notice 2020-18, provides substantially broader relief for taxpayers obligated to undertake two primary categories of action on or after April 1, 2020, but before July 15, 2020, referred to as an “Affected Taxpayer.” First, Notice 2020-23 provides a list of “Specified Filing and Payment Obligations,” including, but not limited to, the various Forms 1040, 1120, 1066, 1041, and others. This includes all “schedules, returns, and other forms that are filed as attachments to Specified Forms or are required to be filed by the due date of Specified Forms… .” Second, Notice 2020-23 references and incorporates as “Specified Time Sensitive Actions” an extensive list of actions in Rev. Proc. 2018-58 that may be postponed for individuals in the armed services and taxpayers affected, in part, by a federally declared disaster. Importantly, these include actions such as filing of annual information forms. Similarly, Notice 2020-23 provides additional, more limited relief to taxpayers already under investigation, whose case is already with the Independent Office of Appeals, and others, as well as providing the IRS additional time to take certain actions. The relief provided under Notice 2020-23 extends the due dates for both Specified Filing and Payment Obligations and Specified Time Sensitive Actions to July 15, 2020.
Accordingly, Notice 2020-23 provides relief from IRS filing deadlines for information returns until July 15, 2020.
Stevie D. Conlon is a vice president, tax and regulatory counsel for Wolters Kluwer and has written and spoken extensively on legal matters relating to financial products and compliance.
John Kareken, JD is a senior tax and regulatory manager with Wolters Kluwer.
Anna Vayser, CPA is a product manager with Wolters Kluwer.
To learn more about our tax accounting solution, click here.