By Nate Smithson & Ashley Withers
The IRS has issued Notice 2020-18, permitting taxpayers to delay until July 15, 2020, the filing of federal income tax returns and the payment of federal income taxes that would otherwise be due April 15, 2020.
Federal income tax returns for all taxpayers that were previously due on April 15 will now be considered as timely filed if submitted by July 15, 2020. Additionally, the due date for federal income tax payments (including payments of tax on self-employment income) that were previously due on April 15, 2020, is postponed until July 15, 2020. Such postponed amount due is applicable without regard to the dollar amounts associated with such payments due.
The relief is limited only to federal income tax returns and payments due on April 15 and does not apply to other types of federal or state or local taxes, or for tax returns or payments due prior to April 15.
Our Tax Group will continue to monitor IRS activities associated with the emergent COVID-19 pandemic, and will provide updates in the future as additional actions are taken by the IRS.
Nathan T. Smithson is a transactional tax attorney with a focus on federal income tax planning for corporations, partnerships, and limited liability companies. In his practice, Nate counsels some of the largest businesses in the country on tax planning, helping them derive the most advantageous strategies possible. Nate has worked closely with clients to revisit their tax structures following the enactment of the Tax Cuts and Jobs Act and to revise partnerships and LLC agreements to reflect the newly effective partnership audit rules. Nate is also frequently engaged to structure executive compensation arrangements for clients, with a specific focus on drafting and negotiating partnership equity and phantom equity compensation plans.
Ashley P. Withers focuses her practice on tax planning for complex corporate, partnership, family, and inter-generational transactions as well as tax controversy matters including IRS audits and appeals. Her experience includes structuring Qualified Opportunity Zone transactions, stock and asset transfers, ensuring 1099 and W-2 reporting compliance, and analyzing the taxability of litigation settlements. Prior to focusing her practice on tax, Ashley was a research attorney at the Firm.
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