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Aaron Szager, CFP®
In response to the COVID-19 crisis, the IRS and State of California have announced the postponement of tax filing for tax year 2019. You may be in the midst of your tax planning, wondering how this date change impacts you. Working with our long-time partner, David Holland with Holland & Associates, we’ve compiled this list of key provisions of the new rulings that may affect you.
The U.S. Department of Treasury has announced a 90-day extension for filing 2019 federal income tax returns and making 2019 federal income tax payments originally due April 15, 2020. From April 15 to July 15, no interest or penalties will be charged for late filing or late payments.
This extension and new July 15 deadline applies to:
The deferment to July applies to all taxpayers, including individuals, trusts and estates, corporations, and other non-corporate tax filers, as well as those who pay self-employment tax.
The extension of federal tax returns to July 15, 2020 is automatic. Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief. All anticipated tax payments should be made by July 15, 2020, to avoid interest and penalties after that date.
Certain federal tax provisions are unchanged, so please note that:
The IRS is expected to release further guidance on these provisions in the days ahead.
The State of California has announced multiple extensions as well. In line with the federal extensions, the California Franchise Tax Board (“FTB”) has postponed until July 15.
The filing and payment deadlines for all individuals and business entities for:
Since California conforms to the underlying code sections that grant tax postponements for emergencies, FTB is extending the relief to all California taxpayers. Taxpayers do not need to claim any special treatment or call FTB to qualify for this relief.
In addition, Governor Gavin Newsom has extended the filing and payment deadline to July 31 for a broad spectrum of business taxes. Specifically, businesses are eligible for the extension if they owe less than $1 million.
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Advisor Group Manager