Recent guidance published by the IRS (Notice 2020-17 and Notice 2020-18) automatically postpones until July 15, 2020 the due date for filing Federal income tax returns and making Federal income tax payments that originally were due April 15, 2020. These notices apply to any person with a Federal income tax payment or Federal income tax return due on April 15, 2020. Taxpayers are not required to file Forms 4868 or 7004 if the return is filed and payment made by July 15, 2020. There is no limitation on the amount of the payment that can be postponed.
Please note that these Notices apply only to Federal income tax payments (including payments of tax on self employment income, 2019 income tax due and 2020 estimated income tax) and Federal income tax returns due on April 15, 2020. No additional time is provided for the payment or deposit of any other type of Federal tax (e.g., payroll taxes, excise taxes, etc.) or for the filing of any Federal information returns.
The State of Hawaii Department of Taxation provided similar relief (Announcement 2020-01), automatically postponing until July 20, 2020 the due date for filing 2019 State income tax returns and 2019 State income tax payments that were originally due during the period beginning April 20, 2020 and ending June 20, 2020. This relief applies to any person with a 2019 State income tax filing requirement or payment due beginning April 20, 2020 through June 20, 2020. This relief applies solely to returns and payments for the 2019 tax year and no relief is provided for estimated income tax payments related to the 2020 tax year.
Even though the filing deadline for the 2019 income tax returns is postponed, an automatic extension to file the 2019 Hawaii income tax returns to October 20, 2020 is available provided the “properly estimated tax liability” is paid by July 20, 2020.
The relief provided by the Announcement is limited to Hawaii income tax payments and does not extend to withholding tax, franchise tax, public service company tax, general excise tax, transient accommodations tax, estate tax, or any other tax not specifically identified in the Announcement.
Links to the IRS Notices and State of Hawaii Announcement are provided on the Resources page. However, should you have any questions, please feel free to contact any member of your Abatus or CW Associates engagement team.