What you need to know
Income Tax Filing and Payment Deadline Extended to July 15, 2020
On March 18, 2020 the U.S. Treasury Department and Internal Revenue Service (IRS) issued guidance that will allow most individuals and businesses to delay federal income tax filing and payments due on April 15, 2020, until July 15, 2020, without penalties or interest. This emergency declaration will allow more liquidity for individuals and businesses during the COVID-19 pandemic.
How the guidance applies:
Individuals and other non-corporate tax filers
- May defer up to $1 million of federal income tax (including self-employment tax) payments due on April 15, 2020, until July 15, 2020, without penalties or interest
Corporate tax filers
- May defer of up to $10 million of federal income tax payments that would be due on April 15, 2020, until July 15, 2020, without penalties or interest
If you will be receiving a refund, it is in your interest to file as soon as possible to get your refund sooner. The guidance is unclear if the deferment applies to trusts or upcoming quarterly tax payments.
On March 18, 2020 the California Franchise Tax Board (FTB) also announced that it will be postponing the filing and payment deadlines for all individuals and business entities until July 15, 2020. The change in deadline applies to the following California state returns and payments:
- 2019 tax returns
- 2019 tax return payments
- 2020 1st and 2nd quarter estimate payments
- 2020 LLC taxes and fees
- 2020 Non-wage withholding payments
We recommend that you consult with your tax CPA on how the guidance applies to your unique situation. Signature Analytics is here to support you and can provide references to our partner network of tax experts.