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IRS Issues Guidance for COVID -19 Tax Relief and the April 15th Deadline

3-20-2020 IMPORTANT UPDATE:

  • Federal Payment AND Filing Deadline Now July 15, 2020. Late on Friday, the IRS officially announced that, because of the ongoing coronavirus pandemic, tax returns due April 15 will not have to be filed until July 15 this year. Notice 2020-18.  This action does the following:
    • Automatically postpones the filing due date of Federal income tax returns, due April 15, 2020, to July 15, 2020;
    • Automatically postpones the payment due date of Federal income tax payments (including self-employment tax), due April 15, 2020, to July 15, 2020;
    • Provides that there is no limitation on the amount that may be postponed (previously it was limited to $1M);
    • Applies to individuals, trusts, estates, partnerships, associations, companies, or corporations;
    • Applies to 2019 balances due and 2020 first quarter estimated tax payments;
    • Forms 4868 and 7004 are not required to be filed.
  • State of Illinois and other State Filing Deadlines. Several states have also modified payment and filing deadlines and more are expected to follow suit. We are still waiting on guidance from the State of Illinois. For state tax developments related to the coronavirus outbreak, see the AICPA list here.
  • Illinois Governor Pritzker issued a “shelter in place order” for the entire state to begin tomorrow, Saturday, March 21, 2020 at 5:00 p.m. through April 7, 2020.

 

No extension is provided in this notice for the payment or deposit of any other type of Federal tax, or for the filing of any tax return or information return. Year 2020 second quarter estimated tax payment will continue to be due June 15, 2020.  At this time, the IRS has not issued guidance concerning potential relief in connection with the year 2020 second quarter estimated tax payment.

States.  Several states have also modified payment and filing deadlines and more are expected to follow suit. We are still waiting on guidance from the State of Illinois.  For state tax developments related to the coronavirus outbreak, see the AICPA list here.

We assure you that we are closely monitoring the situation and remain committed and available to each of our clients to meet the April 15th filing deadline. See below about how to share your tax information with us during this unique time.

We are here to help and have included below some great COVID-19 resources to help our clients, other business owners and management navigate this unprecedented situation. In addition to the Proposed Families First Coronavirus Response Act, several arms of the government are working on additional relief for businesses and individuals. We will update you as information becomes available.

As always, we are here to help. Please do not hesitate to reach out to us with any question or concerns at 847-267-9600.

 

This publication is distributed with the understanding that the author, publisher and distributor are not rendering legal, accounting or other professional advice or opinions on specific facts or matters, and accordingly assume no liability whatsoever in connection with its use.  © 2020  All Rights Reserved.