Taxpayers and tax preparers received welcome news on Friday when the IRS announced through Notice 2020-18 that it would move the April 15th filing due date back to July 15th to match the previously delayed payment deadline announced earlier last week.
As of March 17th, the IRS had only postponed the payment deadline for some, not all, requiring taxpayers to still file tax returns or extension forms by April 15th. However, on March 20th with Notice 2020-18, the Treasury finally announced the filing deadline would be postponed as well.
Given the economic impact of the current pandemic, taxpayers will need the additional time granted to gather funds necessary to pay their tax liabilities. Also with COVID-19 curtailing day-to-day activities, many businesses and employees face challenges when simply trying to collect and submit tax information to their tax preparers, while still trying to do their part to flatten the curve.
Also, while IRS Notice 2020-18 only applies to federal returns, some states have been quick to offer similar relief. The American Institute of CPAs has created a list of what each state is doing. However, please note that this is a fast-moving story, so even if your state has nothing planned as of today, that may change any minute. For example, the Tennessee Department of Revenue has not yet announced plans for an April 15th deadline postponement, but we expect an announcement is coming soon.
As we’ve learned over the last week or so, the pandemic presents a new set of challenges each day. As the financial world adjusts, we will be closely monitoring the situation for additional official guidance. In the meantime, please do not hesitate to reach out to your team at C&J for further discussion of any questions or concerns.