Many More Tax-Related Deadlines Qualify for July 15 Deferral

Revenue Apportionment in New England

(IRS Notice 2020-23 and Rev. Proc. 2018-58)

Yesterday the IRS issued Notice 2020-23, providing a significant expansion of the returns and payments that qualify for automatic postponement until July 15.  The notice also references two-year old Revenue Procedure 2018-58, and by doing so, pulls in even more actions that may be deferred until July 15.

Here are just a few highlights of this latest guidance:

    • Previously, Notice 2020-18 provided a deferral of time to file and pay until July 15, but only for certain forms and payments due on one specific day (April 15).
    • Notice 2020-23 greatly expands eligibility for the deferral by directly sweeping in many (if not most) federal tax forms and payments due between April 1 and July 15, allowing those actions to instead be postponed until July 15.

Significantly, this includes federal second quarter 2020 estimated tax payments for calendar year entities and individuals that otherwise would be due on June 15.  It also includes certain informational reports, such as Form 5471 and 3520 and many more.

    • Notice 2020-23 states that the new deferral is limited to items specifically listed therein, but it also includes a subtle reference to Revenue Procedure 2018-58, and extends the same July 15 deferral to a very large number of “acts” listed beginning on page 9 of that Revenue Procedure.

Qualifying acts include the filing of Forms 990, which oddly are not directly mentioned in Notice 2020-23, in spite of related filings like 990-T being addressed.  (This omission could easily lead one to believe wrongly that Forms 990 do not qualify!)  The Revenue Procedure lists a number of elections that qualify for deferral too.

    • Payroll tax filings (Forms 941) are not eligible for the deferral.

There are far too many items to mention (270 according to the IRS), but a partial list of actions that, if otherwise due between April 1 and July 15, are now postponed until July 15 are as follows:

    • Estimated income tax payments – including 2020 2nd quarter estimates normally due 6/15
    • Filing of Form 990 (a related BNN article describes this in more detail)
    • Filing of Form 1023 (application for tax-exempt status)
    • Forms 5471, 8865, 3520, and 8938; reporting foreign activity
    • Filing a petition with or asking for review of a decision rendered by the Tax Court
    • Filing a claim for credit or refund of any (federal) tax
    • Bringing suit upon a claim for credit or refund
    • Identification periods for “like-kind exchanges”
    • 180-day requirement re. “Opportunity Zones”
    • Election to treat certain trusts as part of an estate
    • Election of an estate’s alternate valuation date
    • Entity classification elections
    • 83(b) elections
    • IRA contributions
    • Qualified retirement plan contributions on account of the previous tax year
    • Distribution of excess IRA contributions
    • Filing of Form 5500

A full list of the items deferred can be found by reading the 10-page Notice 2020-23 and pages 9-129 of Rev. Proc. 2018-58.

To discuss this tax legislation, please contact your BNN tax service provider at 800.244.7444.

Disclaimer of Liability: This publication is intended to provide general information to our clients and friends. It does not constitute accounting, tax, investment, or legal advice; nor is it intended to convey a thorough treatment of the subject matter.