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IRS Confirms July 15, 2020 Federal Income Tax Filing and Payment Due Date

On Friday, March 20, 2020, the IRS issued Notice 2020-18 backing Treasury Secretary Mnuchin’s earlier announcement that the due date for income tax returns normally due on April 15th will be moved to July 15th.

The Notice provides for an automatic postponement of time to file federal income tax returns and to postpone income tax payments that are due on April 15, 2020 to the July 15, 2020 date. This means that an extension is not required to be filed and the postponement is applicable to all taxpayers, whether or not there is a balance due.

One of the biggest changes from the previously issued Notice 2020-17 is that there are no limitations on the amount of payments that can be postponed. The $10 million and $1 million thresholds previously provided for C corporations and non-C corporate taxpayers, respectively, have been removed.

The Notice reiterates items previously outlined, including that postponement applies to taxpayers’ 2019 taxable year and 2020 first quarter estimates that are due on April 15, 2020, and that the postponement is only applicable to income tax payments, inclusive of self-employment tax. This means that information returns, payroll taxes, and other non-income tax related federal items are still due. In addition, second quarter federal estimates are still due June 15th, before the July 15th postponement date.

Despite this relief, we encourage you to continue to forward your tax information to your Rehmann advisor. Many state and local tax authorities have yet to announce if they are following the IRS’ lead on this matter, and we understand that clients want their anticipated refunds or want to plan for the July 15th payment. Here at Rehmann, we remain committed to work on all tax compliance during this COVID-19 pandemic.

If you have any questions, please contact your Rehmann advisor.

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