March 23 2020

COVID-19 pandemic: emergency tax measures – guidance on deferring tax filing date issued

Source: IBFD Tax Research Platform News

The US Treasury Department and the US Internal Revenue Service (IRS) issued Notice 2020-18 on 20 March 2020 providing for the automatic deferral of the filing date for federal income tax returns for US taxpayers from 15 April 2020 to 15 July 2020. This notice restates and expands on related measures in Notice 2020-17 that permitted US taxpayers to defer payments of US federal income tax (including self-employment tax) due on 15 April 2020 until 15 July 2020 without penalties or interest. Unlike Notice 2020-17, Notice 2020-18 provides that there is no limitation on the amount of the payment that may be deferred. The new notice is distinct from recently proposed legislative measures in this contex.