On March 20, 2020, the IRS issued Notice 2020-18 detailing specifics of the Federal tax filing and payment extensions that came about as a result of the COVID-19 pandemic. Although many of the associated deadlines were moved to align with the new July 15th filing and payment deadlines, there are a few notable exceptions to be mindful of and some additional action is required on the part of the taxpayer in certain instances.
Here are nine key takeaways to bear in mind:
- Payments due on April 15th, including first quarter 2020 estimated income tax payments and 965(h) transition tax, are postponed until July 15th
- Estimated tax payments due on June 15th are presently not postponed
- The IRS has recently clarified that the relief now applies to gift tax returns and related payments; the postponement does not apply to excise taxes or informational filings
- Taxpayers who cannot file by July 15th should file an extension by that date
- A taxpayer who filed their return and scheduled an automatic withdrawal can cancel their payment and reschedule it for July 15th
- IRA contributions for 2019 can be funded up to the July 15th revised deadline
- 10% penalty on 2019 early withdrawal is due by July 15th
- Contributions to health savings accounts can be made as late as July 15th
- Claims for refund for the 2016 tax year were not postponed past April 15th, 2020
If you have questions on how these provisions from IRS Notice 2020-18 may affect your tax situation, please contact your Untracht Early advisor for more details.