IRS Defers More Tax Returns and Payments

Notice 2020-23, 2020-18 I.R.B. 748 (4/27/2020), defers the due dates for more federal tax returns and tax payments until July 15, as well as certain “time-sensitive actions.”

The deferral applies to the tax returns and payments described below that are due on (or on extension to) a date on or after April 1, 2020, and before July 15, 2020. This new notice amplifies Notice 2020-18, 2020-15 I.R.B. 590 (4/6/2020), and Notice 2020-20, 2020-16 I.R.B. 660 (4/13/2020), which provided similar relief for some returns and payments due on April 15.

The returns and payments more likely to be relevant to estate and trust practitioners are as follows:

  1. Fiduciary income tax returns (Form 1041) and tax payments. Returns due on April 15 were already deferred, so this deferral applies to estates with a tax year ending on January 31 or February 29, whose returns would have been due on May 15 or June 15.
  2. Estimated tax payments for individuals, estates and trusts, and others. Estimated tax payments due on April 15 were already deferred, so this deferral applies to trusts that need to make a second quarter estimated tax payment, and allows those payments to be made on July 15 instead of June 15.
  3. Estate tax returns (Form 706) and tax payments, including late filed returns under Rev. Proc. 2017-34, 2017-26 I.R.B. 1282 (which allows late returns for portability elections).
  4. Gift tax (and generation-skipping tax) returns and payments that are due along with a federal estate tax return.
  5. Decedent basis reports on Form 8971.
  6. Estate tax payments of interest or principal due as a result of an election under sections 6166 (15 year deferral for closely held businesses), 6161, or 6163.
  7. Exempt organization returns and payments for unrelated business taxable income (Form 990-T), for private foundations (Form 990-PF), and foundation excise taxes (Form 4720).

There is similar relief for returns and payments by corporations and partnerships.

[4/13/2020 Update: Some of the “time-sensitive actions” covered by Notice 2020-23 are described in “IRS Defers Due Dates for Time-Sensitive Actions.”]

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