Media | March 22, 2020

Updated: CLIENT ALERT: IRS Extends Filing Deadline

On March 20, 2020, the IRS released Notice 2020-18 (https://www.irs.gov/pub/irs-drop/n-20-18.pdf) which supersedes Notice 2020-17 issued on March 18, 2020.

Notice 2020-18 provides:

• No extension forms are required to be filed. The April 15, 2020 filing deadline is automatically postponed to July 15, 2020.

• The extension applies to any “person” defined as an individual, trust, estate, partnership, association, company or corporation with an income tax return or Federal income tax payment due April 15, 2020.

• There is no limit to the amount of tax that can be postponed. Previously, the maximum tax deferral was $1,000,000 for individuals and $10,000,000 for corporations.

• The deferral of tax continues to only apply to Federal income tax (including self-employment tax). No other type of tax can be deferred.

• The deferral applies only to 2019 Federal income tax and first quarter 2020 estimated tax payments.

• Penalties and interest for payments originally due on April 15, 2020 will begin to accrue on July 16, 2020.

• Georgia is expected to adopt similar provisions, but has not yet released any information on this topic.

We will continue to monitor this topic and post updates as additional information is received.

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