IRS issues notice 2020-23 providing extensive relief for tax filings, payments and other tax sensitive matters

While Notice 2020-23 identifies specific forms and payments subject to relief already provided in prior notices, it also expands the list, effectively postponing until July 15 most actions required to be taken by taxpayers from April 1 through July 14.

The relief granted by Notice 2020-23 is automatic and does not require the filing of an extension or other correspondence with the IRS. If a taxpayer needs additional time to file beyond July 15, they may file the appropriate extension form by July 15, 2020. However, the taxpayer’s extension date may not exceed the original extension date.

Federal tax forms and payments covered by the relief include:

• 1040 series (Individual income tax payments and return filings) including Forms 1040, 1040-SR, 1040-NR, 1040-NR-EZ, 1040-PR and 1040-SS.
• 1120 series (Corporate income tax payments and return filings) including Forms 1120, 1120-C, 1120-F, 1120-FSC, 1120-H,1220-L, 1120-ND, 1120-PC, 1120-POL, 1120-REIT, 1120-RIC, 1120-S and 1120-SF.
• 1065 (U.S. Return of Partnership Income).
• 1066 (U.S. Real Estate Mortgage Investment Conduit Income Tax Return).
• 990-T (Exempt Organization Business Income Tax Return).
• 990-PF (Return of Private Foundation).
• 1041 series (Estates and Trusts income tax payments and return filings) including Forms 1041, 1041-N and 1041-QFT.
• 706 series (Estate and Generation Skipping tax payments and return filings) including Forms 706, 706-NA, 706-A, 706-QDT, 706-GS(D), and 706-GS(D-1).
• Gift and Generation Skipping tax payments and return filings on Form 709 that are due on the date an estate is required to file Form 706 or Form 706-NA.
• 8971 (Information Regarding Beneficiaries Acquiring Property from a Decedent).
• Estate tax payments of principal or interest due as a result of an election made under sections 6166, 6161, or 6163.

The relief also includes all schedules, returns, and other forms filed as attachments, such as schedule H, schedule SE, and Forms 3520, 5471, 5472, 8621, 8858, 8865, and 8938.

Elections: Elections that are made or required to be made on a timely filed form specified in the Notice (or attachment to a specified form) shall be timely made if filed on such specified form or attachment on, or before, July 15, 2020.

Estimated taxes: The notice postpones the June 15 deadline for estimated tax payments to July 15, providing that second quarter payments are now also due on July 15, along with first quarter payments. This applies to Forms 990-W, 1040-ES, 1040-ES(NR),1040-ES(PR), 1041-ES, and 1120-W.

Installment payments under Sec. 965(h): Installment payments of the Sec. 965 transition tax due on or after April 1, 2020, and before July 15, 2020, are postponed to July 15, 2020.

Deadlines for any of the following procedural actions occurring from April 1 through July 14 are also extended to July 15:

• Filing a petition with the Tax Court;
• Appealing a decision by the Tax Court;
• Filing a claim for credit or refund of any tax; and
• Bringing suit upon a claim for credit or refund of any tax.

Postponement of IRS Acts:

The IRS extended its own deadlines by an extra 30 days to perform time-sensitive acts if the last date for performance is between April 6, 2020 and July 15, 2020. This affects taxpayers under examination, with cases at the Independent Office of Appeals, and those who submit amended returns or payments for tax on which the assessment period would expire between April 6, 2020 and July 15, 2020.

Notice 2020-23 clarifies many questions that taxpayers have had since the release of Notice 2020-17. Although some questions still remain, it highlights that the IRS is attempting to provide filing and payment relief in most situations due to the impact of COVID-19.

Please contact your Mazars USA LLP professional for additional information.

Published on April 10, 2020

The information provided here is for general guidance only, and does not constitute the provision of tax advice, accounting services, investment advice, legal advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal or other competent advisers.