The IRS has issued Notice 2020-18 and posted FAQs at the IRS web site explaining what the Federal tax due date extension to July 15, 2020 covers.  The IRS has also issued Notice 2020-23, applying the extension to more tax returns and tax payments.

The extension doesn’t apply to all federal taxes.  For example, it applies to federal income tax returns and gift tax returns and tax payments, including estimated income tax payments, due on April 15, 2020, and June 15, 2020,  but doesn’t apply for federal payroll tax returns,  or some excise taxes,

Notice 2020-23 says the extension to July 15, 2020 also applies to federal income tax returns and payments due on or after April 1, 2020 and before July 15, 2020, including calendar year or fiscal year corporate income tax returns, calendar or fiscal year partnership returns, calendar or fiscal year income tax returns for estates and trusts, estate and generation-skipping tax returns and estate tax installment payments under certain tax elections, exempt organization business tax returns, and quarterly estimated income tax payments.

The extension also doesn’t apply to the due date of filing amended income tax returns, corporate requests for quick refunds of estimated tax payments (Form 4466), the time for completing retirement account rollovers, or for taking excess deferrals contributed to a 401(k) plan out of the plan (due April 15.)

The extension does apply to contributions for 2019 to IRAs (including Roth IRAs) and Health Savings Accounts (HSAs).

Nothing needs to be done to get the due date extension to July 15, 2020.  The due date has simply been changed.

Penalties for late filing of income tax returns and penalties for late payment of income taxes won’t apply for income tax returns and income tax estimated tax payments otherwise due on April 15, 2020 that are filed and paid by July 15, 2020.

If a taxpayer needs additional time to file its 2019 income tax return beyond July 15, 2020, it can file an automatic extension to file form by July 15, 2020, showing the estimated tax due.  The due date for paying the tax isn’t extended beyond July 15, 2020, and late payment penalties plus interest will apply for 2019 income taxes not paid by July 15, 2020.

If a taxpayer has scheduled an automatic payment of income taxes on April 15, 2020 for an e-filed income tax return, the taxpayer may call IRS e-file payment services 24/7 at 888-353-4537 to cancel the payment.  The IRS recommends that you wait 7 to 10 days after your tax return has been accepted before calling and the request must be received no later than 11:59 p.m. ET two business days before the scheduled payment date.  The taxpayer should then go to www.irs.gov/payments/direct-pay to schedule a payment for July 15, 2020.

Estimated tax payments that were previously scheduled using Direct Pay can be cancelled and rescheduled at www.irs.gov/payments/direct-pay.  You will need the transaction number for the scheduled transaction.

The California Franchise Tax Board has announced it is conforming to the federal due date extension for income tax returns and for tax payments, including both the first and second estimated tax payment for 2020.

If you have a question about this matter, call the IRS, consult with your tax advisor or write to me at mgray@taxtrimmers.com.

Here’s a link to Notice 2020-18. https://www.irs.gov/pub/irs-drop/n-20-18.pdf

Here’s a URL to IRS Notice 2020-20, extending the due date for federal gift tax returns and generation skipping tax returns with respect to a gift. https://www.irs.gov/pub/irs-drop/n-20-20.pdf

Here’s a link to the FAQs. https://www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers

Here’s a URL to Notice 2020-23, applying the federal due date extension to more tax returns.  https://www.irs.gov/pub/irs-drop/n-20-23.pdf