[co-author: Mark Goldsmith]*

In Notice 2020-23, released on April 9, the Department of the Treasury expanded the relief offered in earlier notices to apply to a broader set of taxpayers, additional tax returns and tax payments required to be filed or made, as well as certain other taxpayer actions to be taken.

This Notice amplifies the relief already provided in earlier notices: Notice 2020-17, issued on March 18 (postponing certain federal income tax payments from April 15, 2020 until July 15, 2020); Notice 2020-18, issued on March 20 (superseding Notice 2020-17 and providing expanded relief for filing federal income tax returns and making federal income tax payments due April 15, 2020); and Notice 2020-20, issued on March 27 (amplifying Notice 2020-18 and providing additional relief, postponing certain federal gift and generation-skipping transfer tax return filings and payments).

General Rule: Due Date for Filing Federal Tax Returns and Making Federal Tax Payments Postponed to July 15, 2020. The due date of certain federal tax payment obligations and certain federal tax return or other form filing obligations, where the due date would otherwise be on or after April 1, 2020 and before July 15, 2020 (taking valid extensions into account), is automatically postponed to July 15, 2020.

What persons does this relief apply to?

This relief applies quite broadly to “any person,” as defined in section 7701(a)(1) of the Internal Revenue Code of 1986, as amended (the Code). This includes individuals, trusts, estates, partnerships (including LLCs and other entities or arrangements treated as partnerships for tax purposes), associations, companies or corporations.

What tax returns and what tax payments are covered by the relief?

The relief broadly covers income tax payments and return filings by individuals, S and C corporations, REITs, partnerships, trusts and estates, exempt organizations, quarterly estimated payments, and other returns and payments specified below.

• Individuals – income tax payments and return filings on the following:

  • Form 1040, U.S., U.S. Individual Income Tax Return

  • Form 1040-SR, U.S. Tax Return for Seniors

  • Form 1040-NR, U.S. Nonresident Alien Income Tax Return

  • Form 1040-NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents

  • Form 1040-PR, Self-Employment Tax Return - Puerto Rico

  • Form 1040-SS, U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico)

• Quarterly estimate income tax payments – calculated on or submitted with the following forms:

  • Form 990-W, Estimated Tax on Unrelated Business Taxable Income for Tax-Exempt Organizations

  • Form 1040-ES, Estimated Tax for Individuals

  • Form 1040-ES (NR), U.S. Estimated Tax for Nonresident Alien Individuals

  • Form 1040-ES (PR), Estimated Federal Tax on Self Employment Income and on Household Employees (Residents of Puerto Rico)

  • Form 1041-ES, Estimated Income Tax for Estates and Trusts

  • Form 1120-W, Estimated Tax for Corporations

• Corporations – calendar-year or fiscal-year corporate income tax payments and return filings on the following forms:

  • Form 1120, U.S. Corporation Income Tax Return

  • Form 1120-C, U.S. Income Tax Return for Cooperative Association

  • Form 1120-F, U.S. Income Tax Return of a Foreign Corporation

  • Form 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation

  • Form 1120-H, U.S. Income Tax Return for Homeowners Associations

  • Form 1120-L, U.S. Life Insurance Company Income Tax Return

  • Form 1120-ND, Return for Nuclear Decommissioning Funds and Certain Related Persons

  • Form 1120-PC, U.S. Property and Casualty Insurance Company Income Tax Return

  • Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations

  • Form 1120-REIT, U.S. Income Tax Return for Real Estate Investment Trusts

  • Form 1120-RIC, U.S. Income Tax Return for Regulated Investment Companies

  • Form 1120-S, U.S. Income Tax Return for an S Corporation

  • Form 1120-SF, U.S. Income Tax Return for Settlement Funds (Under Section 468B)

• Partnerships – calendar-year or fiscal-year partnership return filings on the following forms:

• Estates and trusts - income tax payments and return filings on the following:

  • Form 1041, U.S. Income Tax Return for Estates and Trusts

  • Form 1041-N, U.S. Income Tax Return for Electing Alaska Native Settlement Trusts

  • Form 1041-QFT, U.S. Income Tax Return for Qualified Funeral Trusts

• Estate and generation-skipping transfer tax - payments and return filings on the following:

  • Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return

  • Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return

  • Form 706-A, United States Additional Estate Tax Return

  • Form 706-QDT, U.S. Estate Tax Return for Qualified Domestic Trusts

  • Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations

  • Form 706-GS(D), Generation-Skipping Transfer Tax Return for Distributions

  • Form 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 section 6035(a) of the Code

• 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 sections 6166, 6161 or 6163 and annual recertification requirements under section 6166 of the Code

• 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 section 6033(e) of the Code)

• Excise tax payments on investment income and return filings on the following:

  • Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Trust Treated as Private Foundation

  • Excise tax payments and return filings on Form 4720

  • Return of Certain Excise Taxes under Chapters 41 and 42 of the Internal Revenue Code

Note that the relief described above covers not just the filing of the forms specified, but also all schedules, returns and other forms that are filed as attachments or are required to be filed by the due date of the forms, including, for example, Schedule H and Schedule SE, as well as Forms 3520, 5472, 5472, 8621, 8858, 8865 and 8938. The relief also includes any installments under section 965(h) due on or after April 1, 2020 and before July 15, 2020. Finally, elections that are made or required to be made on a timely form that is described will be timely made if they are filed on or before July 15, 2020.

Does a person have to do anything to obtain the relief until July 15, 2020?

No, the relief is automatic. If the relief applies to you, you do not have to call the IRS or submit any extension forms, letters or other documents to receive this relief.

Do I need to do anything if I want to an extension beyond July 15, 2020?

Yes. You must file the appropriate extension form by July 15, 2020 to obtain an extension beyond July 15, 2020. However, note that the extension date may not go beyond the original statutory or regulatory extension date. For example, a Form 4838, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, may be filed by July 15, 2020 to extend the time to file an individual income tax return, but that extension will only be to October 15, 2020.

I think I will owe taxes with my individual or other federal income tax return (included in the list above) for 2019. Do I have to pay them by April 15, 2020 or July 15, 2020?

The due date is now July 15, 2020. There is no limit on the amount that can be deferred without penalties or interest. The period beginning on April 1, 2020 and ending on July 15, 2020 will be disregarded in the calculation of any interest, penalty or addition to tax for failure to file the forms described above, or pay the tax payments described above. Interest, penalties and additions to tax on these filings and payment obligations will begin to accrue on July 16, 2020.

Are timings for any other actions extended?

Yes, the time for filing all petitions with the Tax Court, or for review of a decision rendered by the Tax Court; the time for filing a claim for credit or refund of any tax; and the time for bringing suit on a claim for credit or refund of any tax are extended. Thus, for example, a taxpayer can file a refund claim for a tax year ended December 31, 2016 until July 16, 2020. Ordinarily, this would need to have been filed by April 15, 2020. Note that this Notice does not provide relief of 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.

Are there similar extensions of time for the government to take certain actions?

Yes. The Notice also provides the IRS with additional time (30 days) to perform certain time-sensitive actions if the last date for performance of the action is on or after April 6, 2020 and before July 15, 2020. The time-sensitive actions are described in Treasury Regulations section 301.7508A-1(c)(2). This generally will affect persons:

• who are currently under examination

• whose cases are with the Independent Office of Appeals, and

• 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.

The Notice provides that this is subject to review and further postponement, as appropriate.

Will similar rules apply for state and local taxes?

It is completely dependent on the states in which the corporation is required to file income tax returns. For more information on state guidance, see our state-by-state tax summary.