n-20-48.pdf

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Relief for Taxpayers Affected by Ongoing Coronavirus Disease Pandemic, Related to
Sport Fishing Equipment and Bows and Arrows Excise Tax Filing and Payment
Deadlines

Notice 2020-48

SECTION 1. PURPOSE

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 26 U.S.C. 7508A(a).”
Pursuant to the Emergency Declaration, this notice provides relief under section
7508A(a) of the Internal Revenue Code (Code) for the persons described in section 3 of
this notice that the Secretary of the Treasury has determined to be affected by the
COVID-19 emergency.
SECTION 2. BACKGROUND
Section 7508A of the Code provides the Secretary of the Treasury or his
delegate (Secretary) with authority to postpone the time for performing certain acts
under the internal revenue laws for a taxpayer determined by the Secretary to be
affected by a federally declared disaster as defined in section 165(i)(5)(A). Pursuant to
section 7508A(a), a period of up to one year may be disregarded in determining
whether the performance of certain acts is timely under the internal revenue laws.

2
Section 40.0-1(a) of the Excise Tax Procedural Regulations applies the part 40
procedural regulations to various excise taxes including those imposed on sporting
goods by chapter 32, subchapter D, part I of the Code. Section 40.6011(a)-1(a)(1)
provides that the return of any tax to which part 40 applies must be made on Form 720
(Quarterly Federal Excise Tax Return) according to the instructions applicable to the
form. The requirement for filing a return under part 40 applies separately to each tax
listed by IRS Number on Form 720.
The federal sporting goods excise taxes are imposed by section 4161(a) on sport
fishing equipment and by section 4161(b) on bows and arrows. These taxes are
reported on Form 720, Part II, IRS Numbers: 41 (sport fishing equipment (other than
fishing rods and fishing poles)), 110 (fishing rods and fishing poles), 42 (electric
outboard motors), 114 (fishing tackle boxes), 44 (bows, quivers, broadheads, and
points), and 106 (arrow shafts) (hereafter the “sport fishing and archery equipment
numbers”). Under section 40.6011(a)-1(a), an entry for each IRS Number on Form 720
constitutes a separate return. The Form 720 due on July 31, 2020, covers the second
calendar quarter (April, May, June) of the year 2020.
SECTION 3. GRANT OF RELIEF
Any person (as defined in section 7701(a)(1) of the Code) with a federal sporting
goods excise tax payment due and the requirement to file a return under the sport
fishing and archery equipment numbers on Part II of Form 720, on July 31, 2020, is
determined to be affected by the COVID-19 emergency for purposes of the relief
described in this section 3 (Affected Taxpayer).

3
For an Affected Taxpayer, the July 31, 2020, due date for filing Form 720 for the
sport fishing and archery equipment numbers and making corresponding federal
sporting goods excise tax payments is automatically postponed to October 31, 2020.
This relief is automatic. Affected Taxpayers do not have to call the IRS, file any
extension forms, or send letters or other documents to receive this relief. An Affected
Taxpayer may file a Form 720 for excise taxes and pay the corresponding excise taxes
on sport fishing and archery equipment by the normal due date (July 31, 2020) if the
Affected Taxpayer so chooses. An Affected Taxpayer who takes advantage of this
postponement should file only one Form 720 for the sport fishing and archery
equipment numbers by the postponed deadline of October 31, 2020, on an IRS Number
line if the taxpayer has excise tax liability for the tax corresponding to that Number and
this Notice postpones the payment of that tax (in other words, avoid duplicate filings).
Any Affected Taxpayer that, pursuant to this Notice, files its second quarter Form
720 for the sport fishing and archery equipment numbers after July 31, 2020, must
adhere to the following instructions:
• Any Affected Taxpayer that wants to take advantage of the postponement
must file a paper Form 720, rather than an electronic Form 720, to file its
return for excise taxes on sport fishing and archery equipment after July 31,
2020. In addition, an Affected Taxpayer must write “Notice 2020-48” on the
top-center of the Form 720 on which its excise taxes on sport fishing and
archery equipment are reported after July 31, 2020.
• An Affected Taxpayer may also choose to file a Form 720 for excise taxes on
sport fishing and archery equipment by the normal due date (July 31, 2020).

4
For taxpayers who do not want to take advantage of this filing deadline
postponement, a return filed by July 31, 2020, may be filed electronically.
• If any Affected Taxpayer that wants to take advantage of this postponement is
required to file a Form 720 for excise taxes other than for sport fishing and
archery equipment on July 31, 2020, the Affected Taxpayer must file the
Form 720 by the normal due date for those taxes (July 31, 2020) with the
sport fishing and archery lines blank. The Affected Taxpayer then must file a
paper Form 720 by October 31, 2020, that reports the sport fishing and
archery excise taxes subject to the relief provided by this Notice. In such a
situation, the first Form 720 (reporting excise taxes other than on sport fishing
and archery) may be filed electronically; however, the second Form 720
(reporting excise taxes on sport fishing and archery equipment) must be filed
on paper and must be labeled “Notice 2020-48” in the top-center of the Form
720.
• Any Affected Taxpayer that wants to take advantage of the postponement
must not combine second quarter (the calendar quarter containing April, May,
and June 2020) and third quarter (the calendar quarter containing July,
August, and September 2020) excise taxes onto one Form 720. Such
Affected Taxpayers must file separate Forms 720 for the second and third
quarters by October 31, 2020. Moreover, second and third quarter Form 720
excise tax payments must be made separately, and Affected Taxpayers
should clearly designate payments with respect to the type of tax and tax
period for which the payment is made.

5
As a result of the postponement of the July 31, 2020, due date for timely filing
Forms 720 for the excise taxes on sport fishing and archery equipment and timely
making such excise tax payments to October 31, 2020, the period beginning on
August 1, 2020, and ending on October 31, 2020, will be disregarded in the calculation
of any interest, penalty, or addition to tax for failure to file a Form 720 for the excise
taxes on sport fishing and archery equipment or to pay such excise taxes shown on that
form and postponed by this notice. Interest, penalties, and additions to tax with respect
to such postponed Forms 720 and payments will begin to accrue on November 1, 2020,
if the taxes are then unpaid or the Forms are not timely filed.
SECTION 4. CONTACT INFORMATION
For further information regarding this notice, you may call the COVID-19 Disaster
Relief Hotline at (202) 317-5436 (not a toll-free call).