Yesterday, the Internal Revenue Service restated and expanded upon its prior guidance with the issuance of Notice 2020-18. The new Notice automatically extends both the federal filing and tax payment due dates to July 15, 2020. Because the extension is automatic, taxpayers are not required to file Forms 4868 or 7004. In addition, the Notice does not impose a limitation on the maximum amount of tax that may be deferred, removing the prior cap of $10 million for consolidated groups and C corporations and $1 million for all other taxpayers.
The extension to July 15, 2020 also applies to estimated tax payments (including payments of tax on self-employment income) for the 2020 taxable year otherwise due on April 15, 2020. The Notice does not provide for the postponement of the time to make estimated income tax installment payments that are due on June 15, 2020.
As under the prior Notice, the extension is provided solely with respect to federal income tax payments. No extension is provided for the payment of any other type of federal tax payment or for the filing of any federal information or tax return.
Several states have announced they will conform to the filing and payment extensions provided by the Internal Revenue Service, including New York, California and Connecticut. However, the filing deadlines for certain Connecticut business tax returns have only been extended to June 15, 2020, including 2019 Form CT-990T, Connecticut Unrelated Business Income Tax Return, and 2019 Forms CT-1120 and CT-1120CU, Connecticut Corporation Business Return.
The New Jersey legislature has passed a bill that would extend its tax filing and payment deadlines following a determination by the Internal Revenue Service to extend the filing or payment due date, or both, for federal taxpayers. However, this legislation provides that the extended due date will be no later than June 30, 2020. Governor Murphy has not yet signed this tax extension bill into law.
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