The IRS has issued Notice 2020-18 concerning the delay for FILING AND PAYMENTS on income taxes due. It also included an FAQ referenced below.
To date, not all states have complied with this delay in filing.
For a comprehensive list of states, please refer to page 1 of this document: https://www.aicpa.org/content/dam/aicpa/advocacy/tax/downloadabledocuments/coronavirus-state-filing-relief.pdf
We are still diligently preparing returns for clients who have delivered their materials on a timely basis.
It is important to note the following:
- Qualifying returns are 1040 personal returns and 1120 Corporation returns, Trusts and Estates
- Other fiscal year returns due 4/15/2020 also qualify.
- No relief has been granted for Partnerships/LLCs (1065) or S-Corporations (1120S) that were due 3/15/2020.
- Federal returns do not have to be extended on 4/15/2020 (But not all states have delayed their filing deadlines to match!)
- Returns not filed by 7/15/2020 will need to file an extension.
- Penalties and interest UP TO 4/15/2020 will still be owed.
- AFTER 7/15/2020, penalties and interest start again.
- Quarter 1 Estimates can be delayed to 7/15/2020
- Quarter 2 Estimates are still due 6/15/2020
- IRA and SEP contributions for 2019 can be delayed to 7/15/2020
- HSA funding for 2019 can be delayed to 7/15/2020
- Some collections processes are suspended. See the link below.
- For information on Payroll tax deferment, click here.
For more details and the FAQ go here: https://www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers
For details on suspended collections go here: https://www.irs.gov/newsroom/irs-unveils-new-people-first-initiative-covid-19-effort-temporarily-adjusts-suspends-key-compliance-program
Keep checking back here for more COVID-19 Tax Updates and FAQs.