As many will have heard already in the news headlines, the Treasury is extending U.S. federal income tax return filing and payment deadlines for taxpayers from April 15, 2020 to July 15, 2020. Notice 2020-18, issued under the authority of the COVID-19 emergency declaration, specifically provides that the due date for filing federal income tax returns and making federal income tax payments due April 15, 2020, is automatically postponed to July 15, 2020. There is no need to file an extension for the relief and there is no longer any limit to the amount of payment that can be postponed. Under a prior notice, the relief had extended only to postponing tax payments and within specified limits.
However, despite this relief for taxpayers, the relief notice does not provide relief for brokers or payors with respect to annual tax information returns and recipient statements. Per the notice, “No extension is provided in this notice for the payment or deposit of any other type of Federal tax, or for the filing of any Federal information return.”
What this means for brokers and other payors is that deadlines for tax information (e.g., Form 1099) reporting for 2019 still need to be met. Moreover, with the delay for taxpayer tax return filings, customer support may need to account for the fact that some customers may delay attending to their tax filings (and reviewing their tax statements) until close to the new deadline and thus may still be reaching out to brokers with questions well into July.