IRS releases Q&A to clarify Coronavirus (COVID-19) relief

Today, the Internal Revenue Service (IRS) published a set of questions and answers (Q&A) regarding Notice 2020-18 which provided relief to taxpayers during the Coronavirus (COVID-19) pandemic. The Notice provided that all 2019 federal income tax returns and payments that were due April 15, 2020…are now to be received/paid on or before July 15, 2020.

The Q&A offers important new detail regarding the extensions, some of which are highlighted here:

  • Extensions – Form 4868 (relating to individuals) and Form 7004 (relating to businesses and trusts) can be filed by July 15th to qualify for an automatic extension through October 15, 2020.
  • Employee Contributions – The deadline for employees to make contributions to Individual Retirement Accounts (IRAs), Health Savings Accounts (HSAs) and Archer Medical Savings Accounts (MSAs) for 2019 has been extended as part of the filing deadline extension. The extension also affects the grace period for employers to contribute to workplace-based retirements plans for the 2019 tax year.
  • Estate & Gift Taxes – The normal filing and payment due dates apply for estate and gift tax purposes. Taxpayers seeking extensions must file Form 8892 or Form 4868 to qualify for an automatic extension through October 15, 2020.
  • Exempt Organizations – If a Form 990-T was originally due to be filed on April 15, then it has been postponed to July 15. Note: The due date remains unchanged for taxpayers whose Form 990-T is due on May 15.
  • Excise Taxes – The relief does not apply to the filing of any information returns or payment of any excise tax, because the Notice is limited to federal income tax returns and payments.

Notice 2020-18: https://www.irs.gov/pub/irs-drop/n-20-18.pdf

Q&As: https://www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers

 

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