The IRS was busy yesterday, sending out multiple notices and announcements regarding additional changes to tax filing due dates (this is an update to Tax Tidbits where we had listed the tax due dates as they were known). Also included is a listing of miscellaneous provisions that have also been extended:
- The deadline for the 2020 – 2nd quarter estimated tax payment has been extended to July 15, 2020 (so now the deadline for tax returns and the 1st and 2nd quarterly estimated tax payments are all due on July 15, 2020). An extension (Forms 4868 or 7004) can be filed to extend the due dates of the tax returns to October 15, 2020, however, this is not an extension of time to pay so interest and penalties will start to accrue as of July 16, 2020.
- Americans who live and work abroad, with a due date of June 15th for their federal income tax return, also have until July 15, 2020 to file their 2019 federal income tax return and pay any tax due.
- There is also relief with respect to specified time-sensitive actions. Affected taxpayers have until July 15, 2020, to perform all specified time sensitive actions, that are due to be performed on or after April 1, 2020, and before July 15, 2020. This relief includes the time for filing all petitions with the Tax Court, or for review of a decision rendered by the Tax Court, filing a claim for credit or refund of any tax, and bringing suit upon a claim for credit or refund of any tax. This notice does not provide relief for the time period for filing a petition with the Tax Court, or for filing a claim or bringing a suit for credit or refund if that period expired before April 1, 2020.
- Extension of time to participate in the Annual Filing Season Program Revenue: Procedure 2014-42, 2014-29 IRB 192, created a voluntary Annual Filing Season Program to encourage tax return preparers who do not have credentials as practitioners under Treasury Department Circular No. 230 (Regulations Governing Practice before the Internal Revenue Service) to complete continuing education courses for the purpose of increasing their knowledge of the law relevant to federal tax returns. Tax return preparers who complete the requirements in Rev. Proc. 2014-42 receive an annual Record of Completion. Under Rev. Proc. 2014-42, applications to participate in the Annual Filing Season Program for the 2020 calendar year must be received by April 15, 2020. The 2020 calendar year application deadline is postponed to July 15, 2020.
- COVID Relief for taxpayers claiming NOLs: Revenue Procedure 2020-24 (PDF)provides guidance to taxpayers with net operating losses that are carried back under the CARES Act by providing procedures for:
- waiving the carryback period in the case of a net operating loss arising in a taxable year beginning after December 31, 2017, and before January 1, 2021,
- disregarding certain amounts of foreign income subject to transition tax that would normally have been included as income during the five-year carryback period, and
- waiving a carryback period, reducing a carryback period, or revoking an election to waive a carryback period for a taxable year that began before January 1, 2018, and ended after December 31, 2017.