TIME SENSITIVE ACTS IN NOTICE 2020-23

Time sensitive acts in notice 2020-23. In response to the Covid-19 outbreak, the Treasury and IRS initially provided individuals and businesses limited filing and payment relief in Notices 2020-17 and 2020-18. This relief generally applied only to federal income tax returns and payments (including self employed tax payments) due April 15, 2020, for 2019 tax years and to estimated income tax payments due April 15th, 2020, for 2020 tax years. In notice 2020-23, taxpayers were granted much broader relief that applies to all taxpayers (including individuals, trusts, estates, corporations, and other non-corporate tax filers) with a filing or payment deadline on or after April 1, 2020, and before July 15, 2020. That period will be disregarded by the IRS in calculating any interest, penalty, or addition to tax for failure to file the returns identified in the notice. The following provides a brief background on Notice 2020-23. Time sensitive acts in notice 2020-23.

On March 13, 2020, President Donald Trump issued on emergency declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, P.L. 100-707, in response to the ongoing coronavirus (COVID-19) pandemic. On April 9, 2020, pursuant to the emergency declaration, the IRS issued Notice 2020-23, which provides relief to “affected taxpayers” from timey complying with certain tax deadlines and amplifies the relief granted by prior notices. Notice 2020-23 also postpones, for affected taxpayers, time-sensitive acts set forth in Regs. Secs. 301.7508A-1(c)(1)(4).

An affected taxpayer for purposes of Notice 2020-23 is any person with a specified federal tax payment obligation or a specified federal tax return or other form filing obligation that is due to be performed or pursuant to a valid extension on or after April 1, 2020, and before July 15, 2020. In addition, an affected taxpayer includes any person performing a “specified time-sensitive action” that is due to be performed on or after April 1, 2020, and before July 15, 2020. Taxpayers need to to file tax returns so they don’t need tax resolution.