Understanding the filing relief for 'time-sensitive acts' in Notice 2020-23.

• Author: Keenan, John

In response to the COVID-19 outbreak, Treasury and the 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 selfemployment tax payments) due April 15, 2020, for 2019 tax years and to estimated income tax payments due April 15,2020, 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 noncorporate 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.

Notice 2020-23

On March 13,2020, President Donald Trump issued an emergency declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, RL. 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 timely 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-l(c)(l)(iv) through (vi) and Rev. Proc. 2018-58. (Section III.D of the notice also provides the IRS with additional time to perform the time-sensitive actions described in Regs. Sec. 301.7508A-1(c)(2), which are not addressed in this column.)

Affected taxpayers

An affected taxpayer for purposes of Notice 2020-23 is any person (as defined in Sec. 7701(A)(1)) with a specified federal tax payment obligation (specified payment) or a specified federal tax return or other form filing obligation (specified form) that is due to be performed (originally 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.

Section III.A of Notice 2020-23 identifies the specified filing and payment obligations qualifying for relief. For an affected taxpayer, the due date for filing specified forms and making specified...