IRS GRANTS VIRUS TAX RELIEF

IRS grants virus tax relief. Whenever the economy or our Nation encounters an event that shakes the foundations of our society, and impacts the economy in its wake, eventually the IRS reacts and issues memorandums and notices, granting taxpayers and impacted businesses tax relief. The type and various forms of the tax relief depend upon the economic harm done, and the parts of the economy that have been hurt by the event that caused the harm to begin with. Having seen multiple events in the last 32 years impact our country, and economy, from the mini recession after the first Iraq War, due to the Kuwait invasion, to the larger Iraq and eventual Afghanistan war, due to 9/11, hurricanes like Katrina, and now the largest of them all, the Covid pandemic. The IRS moves from being aggressive in collections to passive, depending upon circumstances. Right now they are granting avenues of tax relief, to kickstart the economy, and rightfully so, as the economy is in freefall. IRS grants virus tax relief.

Taxpayers were granted additional, broad tax filing and payment deadline relief by the IRS, in line with relief requested by the Tax Industry over the past several weeks amid the coronavirus pandemic. The new relief, issued in Notice 2020-23, applies to all taxpayers that have a filing or payment deadline falling on or after April 1, 2020, and before July 15th, 2020, including individuals, trusts, estates, corporations, and other noncorporate tax filers, and that period will be disregarded by the IRS in calculating any interest, penalty, or addition to tax for failure to file the forms specified in the notice. Notice 2020-23 grants automatic relief to affected taxpayers–they do not have to file extensions or send documents to the IRS to obtain relief. The relief encompasses forms and their related schedules and attachments and applies to time sensitive acts listed in Regs. Secs. 301.70508A-1(c)(1)(40 through (5) and Rev. Procedure 2018-58.

The notice postpones the June 15 deadline for estimated tax payments to July 15. The deadline for filing a 2016 tax return to claim a refund, normally April 15, is extended to July 15. The return must be postmarked by July 15.