Private Business Counsel

Superseding earlier guidance to taxpayers, the Internal Revenue Service (IRS) announced in a Notice that anyone facing income tax filing and payment deadlines of April 15 – popularly known as “Tax Day” – may now defer filing their income tax returns and paying their income taxes until July 15, 2020.

Pursuant to Section 7508A of the Internal Revenue Code, which grants the authority to extend filing and payment periods, Treasury Secretary Steven Mnuchin determined on Friday, March 20, that all “persons” facing the April 15 deadline were affected by the novel coronavirus (COVID-19) national emergency declared by President Donald Trump on March 13, 2020. Persons are defined as individuals, corporations, trusts, estates, and other entities facing an April 15 deadline.

Requests for automatic filing extensions do not need to be filed unless taxpayers request to file income tax returns beyond July 15.

An earlier Notice had only extended payment relief of up to $1 million to individuals and $10 million for C corporations and affiliated groups, but still required tax returns to be filed by April 15. The new Notice allows a deferral of all tax payments due April 15 to July 15, and also extends the filing deadline.

The IRS nevertheless advised that any taxpayer expecting a refund file as soon as possible.