On Friday, March 20, the IRS released Notice 2020-18 which supersedes the guidance referenced in our prior communication released on March 19.
Under this new guidance, the original filing deadline for all taxpayers has been postponed from April 15 until July 15. The postponement of the deadline is automatic and no forms are necessary to be mailed. Taxpayers who wish to extend the deadline for filing until October 15 will need to file an extension before the new July 15 deadline.
This notice also removes the dollar limitation on the amount of April 15 payments that may be deferred until July 15 without penalty or interest. So far, no guidance has been issued concerning payments due on June 15 for the second quarter estimated tax payment.
Pennsylvania has postponed the 2019 tax year filing deadline until July 15 and has waived all penalties and interest for payments through that date. Pennsylvania has stated that its extension of time for payments includes the June 15 second quarter estimated tax payment.
We expect each state and local tax authority to make announcements on their own measures in the coming days. California has already passed similar relief as the IRS, while New Jersey, New York, and Philadelphia have not yet released guidance.
Fairman Financial will continue to monitor and provide updates as more information becomes available. If you have questions about your payment or filing obligations, we would be happy to discuss them with you. Please reach out to your primary contact or call our office at 610.889.7300 at your earliest convenience.
Sincerely,
Roy M. Fairman, CPA/PFS, Managing Partner
Marianne Inforzato, CFP®, Partner
Shawn Kindt, CPA/PFS, CFP®, Partner
Doug Morisoli, CPA, CFA, CFP®, Partner
