On April 9,2020, the IRS issued Notice 2020-23, which contains expanded relief for tax forms and other filings that are postponed as a supplement to what was originally announced last month. A key item that is getting attention is the deferral of second quarter estimated taxes from June 15, 2020 to July 15, 2020. See this page for information about the prior extensions.
Under the new notice, the IRS expanded relief for payment and return filing requirements. Any tax return or payment due on or after April 1, 2020, and before July 15, 2020, is now automatically postponed to July 15, 2020—without any requirement to submit an extension or other documentation.
In addition, in a change from prior notices, the IRS has now expanded the forms that are postponed. The postponed forms now include: 1040-series, 1120-series, 1065, 1066, 1041, 706 (estate tax payments and returns), 709 (gift tax payments and returns), 8971, 990-T and estimated tax payments. The extension includes not just the specified forms, but also all schedules, returns and other forms filed as attachments, such as schedule H, schedule SE and Forms 3520, 5471, 5472, 8621, 8858, 8865 and 8938.
While the 990 series tax filings for tax exempt entities are not specifically addressed in the notice, upon further clarification by the IRS, nonprofit returns that are due on May 15th will also be extended to July 15th. Notice 2020-23 allows the same extension relief to any affected taxpayer performing “time-sensitive actions” that should be completed between April 1st and July 15th as detailed in Rev. Proc. 2018-58. Those actions include the filing of Forms 990, 990EZ, 990N and all related schedules, Form 1023, Form 5500 and performing a community health needs assessment for nonprofit hospitals.
The IRS is working to update its frequently asked questions, and we expect more clarification and guidance in the coming days. Any tax due between April 1, 2020 and July 15, 2020 will not be subject to interest or penalties for late payment or filing based on this notice. However, interest and penalties will start to accrue on July 16, 2020.
This article reflects our views at the time this article was written and should be used as reference only. We recommend that you talk to your Warren Averett advisor, or another business advisor, for the most current information or for guidance specific to your organization.