IRS Provides Answers to FAQs Regarding COVID-19 Relief

In an effort to provide as much timely guidance as possible, the IRS has created a Frequently Asked Questions (FAQs) site to address taxpayer questions and concerns with respect to recently promulgated Notice 2020-18. The Notice generally provided relief with respect to income tax return filings and payments and the FAQs serve to guide taxpayers and their tax professionals as things continue to develop and change. While the FAQs provide responses to certain general inquiries, the IRS has clearly noted that they cannot be cited as legal authority. Highlights of the FAQ include clarification of the following issues:

• the Notice applies to any “Person” (i.e., individual, trust, estate, corporation or unincorporated business entity) with a Federal income tax return or payment (Federal income tax, including self-employment tax) and estimated 2020 Federal income tax due on April 15, 2020;
• the Notice does not apply to the normal filing, payment and/or deposit due dates of payroll, estate or gift taxes;
• accruals of interest and penalties on all amounts of 2019 Federal income tax will not begin until July 15, 2020;
• the deadline for making IRA contributions for 2019  is also extended to July 15, 2020; and
• the relief provided for filing Federal income tax returns applies only to Federal income tax returns for the 2019 taxable year and, as such, no extension of the April 15, 2020, deadline to file a claim for a refund for the 2016 taxable year (i.e., three years from the 2016 filing due date) will apply.

A link to the FAQs, which will be updated periodically, can be found here: https://www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers