On March 13, 2020, the President of the United States issued an emergency declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act in response to the ongoing Coronavirus Disease 2019 (COVID-19) pandemic (Emergency Declaration). The Emergency Declaration instructed the Secretary of the Treasury “to provide relief from tax deadlines to Americans who have been adversely affected by the COVID-19 emergency, as appropriate.” Pursuant to the Emergency Declaration, Treasury issued Notice 2020-23, 2020-18 IRB, April 9, 2020, which provides relief under section 7508A(a). Rev. Proc. 2018-58 provides an updated list of time-sensitive acts, the performance of which may be postponed under sections 7508 and 7508A. The notice allows additional time to file Form 3115, Application for Change in Accounting Method, and Form 1128, Application To Adopt, Change, or Retain a Tax Year. The Notice applies to actions that are due to be performed on or after April 1, 2020 and before July 15, 2020.
Rev. Proc. 2018-58 specifically includes “[a]ny act relating to the adoption, election, retention or change of any accounting method or accounting period, or to the use of an accounting method or accounting period, that is required to be performed on or before the due date of a tax return (including extensions).” Therefore taxpayers have until July 15, 2020 to file all Forms 3115 and 1128 that are due on or after April 1, 2020, and before July 15, 2020.
This notice amplifies Notice 2020-18, 2020-15 IRB 590 (April 6, 2020), and Notice 2020-20, 2020-16 IRB 660 (April 13, 2020).
RSM is monitoring all updates, so stay tuned for more information, as the IRS may further extend deadlines or issue guidance with more detailed procedures. To stay up to date on the latest information from RSM regarding the coronavirus public health emergency, visit our Coronavirus Resource Center.