On Friday, March 20, 2020, the Internal Revenue Service (IRS) issued Notice 2020-18, which effectively extended federal tax return filings and payments normally due April 15, 2020, to July 15, 2020. This postponement applies to any individual, trust, estate, partnership, association, company, or corporation with a federal income tax return or income tax payment due on April 15, 2020. Taxpayers do not need to file an extension form of any kind to have this postponement apply.
Under this Notice, no interest, penalty, or addition to tax for failure to file a federal income tax return or to pay federal income taxes will accrue between April 15, 2020, and July 15, 2020, for any return or payment postponed by the Notice.
The Notice only applies to federal income tax returns and payments (including self-employment tax payments) due on April 15, 2020, for tax year 2019, and to estimated income tax payments due on April 15, 2020, for tax year 2020.
This action by the IRS eliminates April 15, 2020, as a meaningful deadline for any tax return filings or payments and establishes July 15, 2020, as the normal due date for calendar-year taxpayers.
We expect states and localities will follow suit now that the federal government has provided this new due date; however, we will monitor individual state/locality action and act accordingly.