IRS Issues Notice 2020-23, Adds to the List of Tax Filing and Payment Extensions


April 10, 2020 - 2:36 PM
Yesterday, the Department of the Treasury and the Internal Revenue Service (IRS) issued Notice 2020-23, which amplifies prior notices that postponed the due date for certain tax filing and payment obligations from April 15, 2020 until July 15, 2020, and postponed certain Federal gift (and generation-skipping transfer) tax return filings and payments. It also extends the time for certain time-sensitive actions and gives the government some additional time as well.

Taxpayers with a Federal tax payment or a Federal tax return filing obligation (or other form filing obligation) which is due to be performed on or after April 1, 2020 and before July 15, 2020 are affected by the COVID-19 emergency (Affected Taxpayer). For an Affected Taxpayer with respect to Specified Filing and Payment Obligations, the due date for filing Specified Forms and making Specified Payments is automatically postponed to July 15, 2020. Affected Taxpayers do not have to call the IRS, file any extension forms, or send letters or other documents to receive this relief. However, Affected Taxpayers who need additional time beyond the new July 15, 2020 deadline may choose to file the appropriate extension form by July 15, 2020 to obtain an extension to file their return, but the extension date may not go beyond the original statutory or regulatory extension date. For example, a Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return may be filed by July 15, 2020, to extend the time to file an individual income tax return, but that extension will only be to October 15, 2020. Additionally, it is important to note that the extension will not extend the time to pay federal income tax, and interest will begin to accrue on July 16, 2020.

The following is a partial list of the additional taxpayers and the relevant tax returns who are being granted similar relief:
  • Individual income tax payments and return filings - Form 1040 (and related 1040 series forms)
  • U.S. Individual Income Tax Return, 1040-SR, U.S. Tax Return for Seniors; 1040-NR, U.S. Nonresident Alien Income Tax Return.
  • Calendar year or fiscal year corporate income tax payments and return filings on Form 1120; 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.
  • Calendar year or fiscal year partnership return filings on Form 1065, U.S. Return of Partnership Income.
  • Estate and trust income tax payments and return filings on Form 1041, U.S. Income Tax Return for Estates and Trusts.
  • Estate and generation-skipping transfer tax payments and return filings on 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 Form 8971, Information Regarding Beneficiaries Acquiring Property from a Decedent.
  • Gift and generation-skipping transfer tax payments and return filings on 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 section 6166 of the Code.
  • Exempt organization business income tax and other payments and return filings on Form 990-T, Exempt Organization Business Income Tax Return (and proxy tax under section 6033(e) of the Code).
  • Quarterly estimated income tax payments calculated on or submitted with 1120-W (Estimated Tax for Corporations), 1040-ES (Estimated Tax for Individuals), 1041-ES (Estimated Income Tax for Estates and Trusts). 

If you have questions, or would like additional information, please contact Joel Luber, Chair of Reger Rizzo & Darnall’s Estates & Trusts Group, at 215.495.6519, or via email at jluber@regerlaw.com, or Ernie Ehling, Of Counsel in Reger Rizzo & Darnall's Estates & Trusts Group, at 856.900.6822, or via email at eehling@regerlaw.com.

We are working with clients to field inquiries and provide advice and guidance in a wide range of areas and industries during the COVID-19 outbreak. Please be sure to check back regularly for updated information. If you have an immediate need, please contact your attorney directly, or email us at info@regerlaw.com, and one of our dedicated attorneys will get back to you shortly.