June 1, 2020
The IRS issued Notice 2020-17 in March, allowing taxpayers to defer their tax payments this year until July 15. However, the deadline for filing tax returns initially was left unchanged. That drew pushback from tax preparers, who argued that the IRS did not seem to appreciate how difficult it is at the moment for tax professionals to work with their clients
Accordingly, the early advice was superseded by Notice 2020-18, which pushes the filing deadline for 2019 returns to July 15, 2020. The new Notice removes the caps of $1 million for individuals and $10 million for corporations on the amount of deferrable tax obligation. However, this forbearance is specifically limited to the income tax. It does not affect estate tax liabilities, or the obligation to file an estate tax return within nine months of the decedent’s death. Such filings may prove especially challenging now, because with the drop in the stock market many more estates will qualify for electing the alternate valuation date to determine estate tax values.