IRS Significantly Expands Deadline Relief in Notice 2020-23
On April 9, 2020, IRS issued Notice 2020-23, which significantly expands the deadline relief for filings and payments earlier provided through Notices 2020-18 and 2020-20.
Filings and Payments
This broad-sweeping relief now applies to taxpayers with a filing or payment deadline on or after April 1, 2020, and before July 15, 2020, for the following.
- Individual income tax payments and return filings on 1040-NR, U.S. Nonresident Alien Income Tax Return, 1040-NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents, 1040-PR, Self-Employment Tax Return - Puerto Rico, and 1040-SS, U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico);
- Calendar year or fiscal year corporate income tax payments and return filings on Form 1120, U.S. Corporation Income Tax Return, 1120-C, U.S. Income Tax Return for Cooperative Associations, 1120-F, U.S. Income Tax Return of a Foreign Corporation, 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation, 1120-H, U.S. Income Tax Return for Homeowners Associations, 1120-L, U.S. Life Insurance Company Income Tax Return, 1120-ND, Return for Nuclear Decommissioning Funds and Certain Related Persons, 1120-PC, U.S. Property and Casualty Insurance Company Income Tax Return, 1120-POL, U.S. Income Tax Return for Certain Political Organizations, 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, and 1120-SF, U.S. Income Tax Return for Settlement Funds (Under Code Sec. 468B);
- 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 and trust income tax payments and return filings on Form 1041, U.S. Income Tax Return for Estates and Trusts, 1041-N, U.S. Income Tax Return for Electing Alaska Native Settlement Trusts, and 1041-QFT, U.S. Income Tax Return for Qualified Funeral 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 706-GS(D-1), Notification of Distribution from a Generation-Skipping Trust (including the due date for providing such form to a beneficiary);
- Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return filed pursuant to Revenue Procedure 2017-34;
- Form 8971, Information Regarding Beneficiaries Acquiring Property from a Decedent and any supplemental Form 8971, including all requirements contained in Code Sec. 6035(a);
- 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 Code Sec. 6166, Code Sec. 6161, or Code Sec. 6163 and annual recertification requirements under Code Sec. 6166;
- 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 Code Sec. 6033(e));
- Excise tax payments on investment income and return filings on Form 990-PF, Return of Private Foundation or Code Sec. 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; and
- 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.
This Notice also provides relief to taxpayers needing to perform a “time-sensitive action” as defined under Treas. Reg. section 301.7508A-1(c)(1)(iv) – (vi) and Rev. Proc. 2018-58 on or after April 1, 2020, and before July 15. The relief extends the due dates for these actions to July 15 as well. (This relief does not apply if the time for action expired before April 1.) These time-sensitive actions include:
- Filing a petition 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
- Bringing suit upon a claim for credit or refund of any tax
Rev. Proc. 2018-58 provides a detailed table listing a number of other time-sensitive actions entitled to relief. This includes deadlines for section 1031 like-kind exchanges.
The relief provided by Notice 2020-23 also includes an investment at the election of a taxpayer due to be made during the 180-day period described in code sec. 1400Z-2(a)(1)(A) (qualify opportunity fund reinvestments).
Time-Sensitive IRS Actions
The Notice also provides relief to actions impacted by IRS office closures. This impacts:
- Persons who are currently under examination (including an investigation to determine liability for an assessable penalty under subchapter B of Chapter 68);
- Persons whose cases are with the Independent Office of Appeals; and
- Persons who, during the period beginning on or after April 6, 2020 and ending before July 15, 2020, file written documents described in section 6501(c)(7) of the Code (amended returns) or submit payments with respect to a tax for which the time for assessment would otherwise expire during this period.
With respect to these taxpayers, a 30-day postponement is granted for Time-Sensitive IRS Actions if the last date for performance of the action is on or after April 6, 2020, and before July 15, 2020.
Annual Filing Season Program
This Notice delays the application date to participate in the Annual Filing Season Program to July 15, 2020.
The relief provided by Notice 2020-23 is automatic. There are no extensions or forms to file to take advantage of the relief. The Notice states that the relief provided does not just include the filing of the forms, but also all schedules, returns, or other forms filed as attachments. It also suspends all interest, penalties, and additions to tax, associated with filings and payments detailed in the Notice through July 15, 2020. These obligations will begin to accrue on July 16.
We will watch for additional IRS guidance (likely through FAQs) with respect to this new relief.
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