Tax Filing Update
March 21, 2020

To Our Valued Clients and Friends,

On March 20, 2020, the Internal Revenue Service (IRS) issued Notice 2020-18 stating that the due date for filing Federal income tax returns and making Federal income tax payments historically due April 15, 2020, has been automatically postponed to July 15, 2020. This deferment applies to all taxpayers, including individuals, trust and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax. Taxpayers do not need to file any additional forms to qualify for the automatic federal tax filing and payment relief. In addition, there is no limitation on the amount of the payment that may be postponed which was a change from the proceeding IRS notice.

The relief provided by Notice 2020-18 is available solely for federal income tax payments (including payments of tax on self-employment income) and federal income tax returns typically due April 15, 2020 and federal estimated income tax payments (including payments of tax on self-employment income) formerly due on April 15, 2020.

As a result of the postponement of the due date for filing Federal income tax returns and making Federal income tax payments, the period beginning on April 15, 2020 and ending on July 15, 2020, will be disregarded in the calculation of any interest, penalties or addition to tax for failure to file or pay. Interest, penalties and additions to tax with respect to amounts of the postponed federal income tax filings and payments will begin to accrue on July 16, 2020.

Additional guidance from the IRS is still needed to clarify the following items:

  • Will extensions filed by July 15, 2020 be deemed to be filed by April 15, 2020?
  • Whether other returns and payments due in May and June will also be postponed or delayed.
  • Will required 2019 retirement plan contributions be delayed?

Once we have additional information on these items we will provide further updates.

In regards to state income filings due on April 15, 2020 each state is individually determining their own relief provisions. We are monitoring these changes and will let you know individually if additional action is needed to meet your state filing requirements.

As a reminder, our office remains closed under the Governor’s directive. However, we are continuing to work and file returns remotely. We are asking all clients to submit their documents through our secure portal, mail them to PO Box 7430, Reno, NV 89510, or drop them into our front door mail slot as soon as possible, as there are some deadlines that have yet to be clarified.

As always, please let us know if we can be assistance to you in these challenging times and we will be in contact with further updates as they become available.

Sincerely,

The Clausen & Company Team



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