Updated April 14, 2020
Please note: Due to rapidly occurring changes as well as continual issuances of guidance and clarity being released, JPS is regularly updating pertinent, previously-posted articles, as needed. Updates are identified by this text color.
The US Treasury Department and IRS announced on April 10, 2020, significant additional tax filing and payment deadline postponements for all entities with deadlines between April 1, 2020, and before July 15, 2020. Notice 2020-23 provides automatic relief without the need for taxpayers to file for these extensions. In March the IRS announced filing and payment postponements, but that relief was only for income taxes, leaving several other important forms and taxes still due in the near future.
Following are select specific considerations:
Estimated tax payments
Individual or corporate quarterly taxes due April 1 – July 15, 2020, may now be paid by July 15, 2020, without penalty. Previously, 2nd quarter individual income tax estimates were still due June 15, while 1st quarter estimates were due July 15.
Extension of time to file beyond July 15
Individual and business taxpayers who need additional time to file beyond July 15, 2020, can request an extension to October 15, 2020.
To avoid interest and penalties, taxpayers should pay taxes owed and estimated taxes by July 15, 2020.
Section 1031 like-kind exchange relief
Taxpayers who are currently involved in a 1031 exchange receive relief from certain time-sensitive requirements applicable to this tax deferral provision. Specifically, the Notice provides that if the 45-day identification period or the 180-day exchange falls between April 1 and July 15, 2020, the taxpayer will have an automatic extension until July 15, 2020, to complete those tasks.
Opportunity Zone Investments [update April 14, 2020]
Capital gains due to roll over into an Opportunity Zone Fund between April 1 and July 15, 2020, to meet the 180-day deadline, have an extended deadline to July 15, 2020.
2016 unclaimed refunds
The deadline to claim a refund from a 2016 tax return has been extended to July 15, 2020.
Living or working abroad
Tax filing and payment are extended to July 15, 2020, for anyone living or working abroad.
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This article was originally posted April 10, 2020.