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In response to U.S. Secretary Steven Mnuchin’s 90-day tax filing and payment extension announcements, the IRS has issued clarifying guidance. Federal income tax filings and payments for all individuals, corporations, trusts and estates can now be deferred to July 15th without penalty or interest.
California Deadlines Also Extended
On March 18th, the California Franchise Tax Board (FTB) also announced special tax relief for California taxpayers impacted by the coronavirus, which includes an extension to file 2019 returns to July 15th, 2020. The relief includes moving tax filing and payment deadlines for all individuals and business entities, which traditionally occur between March and June, to July 15th, 2020. This change is effective for the following filing and payment requirements:
- 2019 tax returns
- 2019 tax return payments
- 2020 1st and 2nd quarter estimate payments
- 2020 LLC taxes and fees
- 2020 non-wage withholding payments
Taxpayers do not need to claim any special treatment or call FTB to qualify for this relief. The board has indicated they may push back due dates even more if the IRS grants a more extended relief period.
The California Department of Tax and Fee Administration (CDTFA) has also announced that taxpayers are able to submit requests for assistance through May 11th, 2020. With respect to the taxes and fees administered by the CDTFA, taxpayers can request extensions for filing returns and making payments, relief from interest and penalties, and filing a claim for refund.
Other States Likely to Follow
In addition to California, multiple other states, including Alabama, Colorado, New Mexico, New York, and Utah will follow the IRS extensions. Connecticut, on the other hand, has extended the filing deadlines to June 15, 2020 and April 15, 2020 for corporate and pass-through income tax returns, respectively. The payment deadline is June 15, 2020 for all entities. We expect more states to follow the IRS in extending the tax filing and payment deadline.
If you have questions about the information outlined above or need guidance during this uncertain time, JLK Rosenberger can help. For additional information, call us at 818-334-8625 or 949-860-9883 or click here to contact us.