COVID-19 Extended Tax Deadlines
Following the surge of COVID-19 cases in the United States, both the IRS and the State of California have enacted extended deadlines for the 2019 tax filing season.
Federally, individuals can defer up to $1 million of income tax payments until July 15th, 2020 and corporations can defer up to $10 million. In addition, the federal filing deadline has also been extended to July 15th, 2020. Taxpayers are still encouraged to file sooner rather than later (especially if they will be receiving a refund), but there will be no penalties or interest as long as either a return or an extension is filed by July 15th. This is an update to an earlier relief measure that moved the payment deadline, but not the filing deadline.
In addition, the State of California has announced similar tax relief measures due to the COVID-19 pandemic. California taxpayers will also have until July 15th, 2020 to make tax payments and file their returns without penalty or interest. All taxpayers are eligible for these new deadlines and do not need to claim any special treatment. California’s extended payment and filing deadlines are an update to an earlier relief measure that extended the deadlines to June 15th, 2020.
Other states will likely follow the federal government’s and California’s lead. So far it is not clear what states will enact extended deadlines, but we are expecting many states to extend deadlines in the coming days.
While the COVID-19 pandemic will have far reaching impacts across our economy, these extended tax deadlines will give taxpayers a much needed economic boost. If you have any questions about how these relief measures might impact you, reach out to your tax preparer.
To see original and revised filing deadlines broken down by return type click here.
To see how our office is safeguarding our clients and employees click here.
For further information:
https://home.treasury.gov/news/press-releases/sm948