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Extensions and Tax Credits

March 23, 2020

EXTENSION OF FILING DEADLINE AND DEFERRAL OF INCOME TAX PAYMENTS DUE APRIL 15, 2020

The IRS released Notice 2020-18 making the extension of the filing deadline official. Any person or entity (corporations, partnerships, LLCs, etc.) that has a return due April 15, 2020 or a tax payment due on that date has an automatic extension for both filing returns and paying those payments until July 15, 2020. Extensions are not required.

Notice 2020-17 put dollar limitations on the extensions ($1 million for individuals and $10 million for corporations), the new notice supersedes Notice 2020-17 and removes those dollar limitations.

Note that only income tax returns and payments are deferred; all other types of returns and payments must be paid on time to avoid penalties and interest, including payroll tax and excise tax returns.

PROCEDURE FOR CLAIMING CORONAVIRUS-RELATED CREDITS

The IRS has released Information Release 2020-57 that provides details about the procedure to claim the credits enacted as part of the Families First Coronavirus Response Act (the Act, PL 116-127, 3/18/20).

Click this link to view a copy of the explanation of the Information Release (with our annotations) published this morning by Thompson Reuters.