Client Communication – March 24, 2020

This week the IRS published Notice 2020-18.  A copy of the notice can be accessed here.

This notice supersedes Notice 2020-17, which postponed the due date for certain Federal income tax payments from April 15, 2020 until July 15, 2020. 

A summary of this notice is as follows:

  • An extension (Form 4868 or 7004) is not required to extend the deadline from April 15 to July 15. 
  • There is now no limitation on the amount of payment that can be postponed.  The original limit was for payments up to $1,000,000 for individuals, estates and trusts, and $10,000,000 for C Corporations.    
  • It makes clear that the relief is specific to income tax payments and tax on self-employment income. 

Many details remain unknown regarding how this notice affects other deadlines such as IRA contributions.  It appears that the Treasury is preparing answers to frequently asked questions and we should know more soon. 

As your trusted advisors, we are committed to keeping you well-informed with any new legislation passed by Congress as well as any new pronouncements by the Department of Treasury that may affect you.