On April 9, 2020, the Internal Revenue Service (the IRS) and the Treasury Department extended the deadlines for additional tax returns, payments and actions by issuance of Notice 2020-23 (the notice). As we previously reported, the IRS had generally extended the deadline for individual and corporate income tax returns and payments that were due April 15 until July 15, 2020. The notice automatically extends a number of additional tax deadlines for individuals, trusts, estates, corporations and others that are due (originally or pursuant to a valid extension) on or after April 1, 2020, and before July 15, 2020. The extensions are granted without taxpayers being required to take any additional action or being subject to penalties or interest during the extended periods. Below is a summary of some of the more significant actions, returns and payments covered by the notice.
Relief With Respect to Specified Time-Sensitive Actions
- Like-Kind Exchanges. The notice extends the 45-day identification and 180-day exchange periods for like-kind exchanges as follows: (i) if the 45-day identification period expires on or after April 1, 2020, and before July 15, 2020, the taxpayer now has until July 15, 2020, to complete the identification and (ii) if the 180-day exchange period expires on or after April 1, 2020, and before July 15, 2020, the taxpayer now has until July 15, 2020, to complete the exchange.
- Tax Court Petitions and Decisions and Claim for Credit or Refund. Pursuant to the notice, affected taxpayers also have until July 15, 2020, to perform specified time-sensitive actions, that are due to be performed on or after April 1, 2020, and before July 15, 2020. This relief includes the time for filing all petitions with the Tax Court, or for review of a decision rendered by the Tax Court, filing a claim for credit or refund of any tax and bringing suit upon a claim for credit or refund of any tax. The notice does not provide relief for the time period for filing a petition with the Tax Court, or for filing a claim or bringing a suit for credit or refund if that period expired before April 1, 2020.
Federal Tax Forms and Payments Covered
- Quarterly Estimated Income Tax Payments. Quarterly estimated income tax payments calculated on or submitted with Form 990-W, Estimated Tax on Unrelated Business Taxable Income for Tax-Exempt Organizations, 1040-ES, Estimated Tax for Individuals, 1040-ES (NR), U.S. Estimated Tax for Nonresident Alien Individuals, 1040-ES (PR), Estimated Federal Tax on Self Employment Income and on Household Employees (Residents of Puerto Rico), 1041-ES, Estimated Income Tax for Estates and Trusts and 1120-W, Estimated Tax for Corporations.
- Individuals. Individual income and self-employment tax payments and return filings on Form 1040, U.S. Individual Income Tax Return and related Form 1040 series.
- Corporations. Calendar year or fiscal year corporate income tax payments and return filings on Form 1120, U.S. Corporation Income Tax Return, Form 1120-S, U.S. Income Tax Return for an S Corporation and related Form 1120 series.
- Partnerships. Calendar year or fiscal year partnership return filings on Form 1065, U.S. Return of Partnership Income, and Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return.
- Estate, Trusts and Beneficiaries.
- Estate and trust income tax payments and return filings on Form 1041, U.S. Income Tax Return for Estates and Trusts and related Form 1041 series.
- Estate and generation-skipping transfer tax payments and return filings on Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return and related Form 706 series.
- Form 8971, Information Regarding Beneficiaries Acquiring Property from a Decedent and any supplemental Form 8971.
- 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 certain elections.
- Exempt Organizations.
- Exempt organization business income tax and other payments and return filings on Form 990-T, Exempt Organization Business Income Tax Return.
- Excise tax payments on investment income and return filings on Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Trust Treated as Private Foundation, and excise tax payments and return filings on Form 4720, Return of Certain Excise Taxes under Chapters 41 and 42 of the Internal Revenue Code.
Postponement of Due Dates with Respect to Certain Government Acts
The notice also provides the IRS with additional time to perform certain time-sensitive actions. The IRS is giving itself an extra 30 days to perform these time-sensitive acts if the last date for performance is on or after April 6, 2020, and before July 15, 2020. Affected taxpayers include those under examination, those with cases with the Independent Office of Appeals and those who submit amended returns or submit payments with respect to a tax for which the assessment period would expire on or after April 6, 2020, and before July 15, 2020.
For further information, please contact any member of the Taft's Tax group.
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