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COVID-19 Tax Changes: Some Tax Returns and Tax Payments Are Postponed

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Federal April 15, 2020 Deadlines

On March 18, 2020, the Treasury Department issued guidance (Notice 2020-17) that taxpayers who owe April 15 federal income tax payments may delay payment until July 15 without penalty or interest. That notice did not extend the time for filing; but on the morning of March 20, Secretary of the Treasury Steven Mnuchin announced via Twitter that the date for filing tax returns  would also be extended to July 15, and that “all taxpayers and businesses will have this additional time to file and make payments without interest or penalties.” Following that announcement, the Treasury released Notice 2020-18 confirming these matters.

Notice 2020-18 expands the earlier notice by confirming the late filing deadline, eliminating the earlier dollar limitations on how much tax could be deferred, and clarifying who may take advantage of these delays. Notice 2020-18 confirmed that these rules apply only to 2019 federal income taxes and 2020 estimated federal income taxes, including those required by self-employed individuals. The notice does not apply to “…any other type of Federal tax, or for the filing of any Federal information return.” The notice also clarifies that corporations (consolidated groups and C corporations), individuals, trusts, estates, partnerships, associations, and companies are included. Taxpayers who are eligible for refunds may want to file as early as possible to expedite their refunds since the IRS recently announced that, in the near term, it has reduced its staff responsible for tax return processing.

The IRS confirmed its plan to disregard the period from April 15, 2020 through July 15, 2020 when calculating interest, penalties, or additions to federal income tax, and reminds taxpayers that these items will begin to accrue again on July 16, 2020.

Oregon and Washington Deadlines

Oregon and Washington have posted and are regularly updating information concerning tax due dates here:

If you have questions, please contact me directly at (503) 205-2584 or bill.manne@millernash.com or any other member of our tax practice.