Notice 2020-18 provides welcome economic relief from filing and payment obligations for certain federal income taxes; however, traps for the unwary exist.

Tax Deadline – Key Points:

..On March 20, 2020, the Internal Revenue Service (IRS) issued Notice 2020-18, automatically postponing until July 15, 2020 the deadline to file federal income tax returns and make certain federal income tax payments ordinarily due April 15, 2020. Taxpayers are not subject to interest, penalties, or additions to tax if such postponed federal income tax filings and payments are timely made under the new deadline.

..The covered payments are federal income tax payments for the 2019 taxable year and federal estimated income tax payments for the first quarter of the 2020 taxable year. Notice 2020-18 does not extend the time for the payment or deposit of any other type of federal tax or for the filing of any federal information return.

..Notice 2020-18 supersedes and replaces prior Notice 2020-17 issued March 18, 2020, which delayed certain tax payments not exceeding certain dollar amount limitations and required that federal income tax returns be filed or properly extended by April 15, 2020.