Is the tax deadline delayed? What to know about coronavirus (COVID-19) and your taxes

Coronavirus Tax Updates
Coronavirus Tax Updates

Federal Tax Updates (Last Update: 3/20/20)

Today the Secretary of Treasury announced via Twitter that, at the direction of the President, they will extend the federal tax filing deadline to July 15, 2020. State deadlines may vary, click here to see state-by-state updates.

The federal tax filing deadline is July 15, 2020.

Taxpayers getting a refund are encouraged to file their taxes now. Last tax season close to 72% of taxpayers received a tax refund close to $3,000, which for many taxpayers is their largest paycheck of the year. During times like this, that is much needed money for many households. The IRS expects to continue to process refunds as normal. The IRS typically issues nine out of 10 tax refunds within 21 days or less from acceptance with e-file and direct deposit – the fastest way to get your refund.

Relief for Individuals and Businesses with Taxes Due

The Treasury and IRS also recently announced the deferment of federal tax payments, interest free and penalty free, for 90 days, until July 15. Individuals and self-employed taxpayers can defer up to $1 million for tax year 2019 federal tax payments. This deferment also applies to tax year 2020 estimated tax payments previously due on April,15, 2020. Corporations can defer up to $10 million in federal payments.

  • How do I know if I qualify for the extended payment deadline? According to the Secretary of Treasury, anyone with a Federal Tax Payment related to their 2019 taxes and their tax year 2020 estimated tax payments due 4/15/20 can defer their tax payment, free of penalties and interest for 90 days for purposes of the relief.

  • What is a federal tax payment?When you file your taxes you either get a refund or owe the IRS money. If you owe, the amount you pay to the IRS is called a federal tax payment.

Deferment of federal tax payments means that if you owe money on your federal taxes, you will get more time to pay what you owe.

Federal Tax Update Regarding the Families First Coronavirus Response Act

On Wednesday, March 18, President Trump signed into law legislation to provide additional relief for taxpayers impacted by Coronavirus (COVID-19).

The COVID-19 legislation, called the Families First Coronavirus Response Act or H.R. 6201, includes relief for individuals, self-employed and businesses. Get the latest information on the Families First Coronavirus Response Act and what it means to you here.

We’ve Got You Covered

Taxpayers can be confident that TurboTax is ready to help them file now up until the extended July 15 deadline. If you have any questions along the way, our team of credentialed TurboTax Live CPAs and EAs are available on demand to help you out.

Continue to check back here for the most up to date tax information and changes in response to Coronavirus.

State Tax Updates (Last Update: 3/19/20)

Get the latest on tax deadlines and guidance for your state below.

California

The FTB is postponing until July 15 the filing and payment deadlines for all individuals and business entities for:

  • 2019 tax returns

  • 2019 tax return payments

  • 2020 1st and 2nd quarter estimate payments

  • 2020 LLC taxes and fees

  • 2020 Non-wage withholding payments

For more details regarding FTB COVID-19 tax relief, please go to ftb.ca.gov and search COVID-19.

Connecticut

  • Announced an extension for certain business taxes by at least 30 days. In addition, the payments associated with these returns are also extended to the corresponding due date in June.

  • These are the impacted returns and the associated filing dates and payment deadlines:

    • 2019 Form CT-1065/CT-1120 SI Connecticut Pass-Though Entity Tax Return: Filing date extended to April 15, 2020; payment deadline extended to June 15, 2020

    • 2019 Form CT-990T Connecticut Unrelated Business Income Tax Return: Filing date extended to June 15, 2020; payment deadline extended to June 15, 2020

    • 2019 Form CT-1120 and CT-1120CU Connecticut Corporation Business Return: Filing date extended to June 15, 2020; payment deadline extended to June 15, 2020

Those who need to contact the Department of Revenue Service regarding their specific situation may e-mail them at DRS@po.state.ct.us or call 860-297-5962.

Maryland

  • Extended business-related tax filing deadlinesuntil June 1st due to COVID-19 to provide relief to small businesses who may be impacted.

  • The extension applies to certain business returns with due dates during the months of March, April and May 2020 for businesses filing sales and use tax, withholding tax, admissions and amusement tax, alcohol, tobacco, and motor fuel excise taxes, tire recycling fee and bay restoration fee returns. Business taxpayers who file and pay by the extended due date will receive a waiver of interest and penalties.

  • Maryland will follow the IRS decision, should it extend its April 15 filing deadline for corporate and individual income tax returns.

North Carolina

  • Announced that they are waiving penalties taking into consideration COVID-19. The waiver applies to the failure to timely obtain a license, file a return, or pay a tax that is due between March 15, 2020, and March 31, 2020, if the license is obtained, the return or extension application is filed, or the tax is paid by April 15, 2020.

  • Affected Taxpayers who cannot meet their filing or payment requirement as a result of COVID-19 should complete Form NC-5500, Request to Waive Penalties. Affected Taxpayers should write “COVID-19” on the top of the NC-5500. The form list is available on www.ncdor.gov.

  • Taxpayers that do not have access to the NC-5500 can attach a letter requesting a penalty waiver. The letter should contain the taxpayer’s name, address, SSN or FEIN, Account ID, and the tax type and tax period for which the taxpayer seeks waiver of penalty. The NC-5500 or letter should be mailed to the North Carolina Department of Revenue, Customer Service, P.O. Box 1168, Raleigh, NC 27602.

South Carolina

  • Is offering an extension for state tax returns and payments. Payments due April 1 – June 1 will now be due June 1, 2020. Penalty and interest will not be charged if payment is made by June 1st.

  • This includes South Carolina Individual Income Taxes, Corporate Income Taxes, Sales and Use Tax, Admissions Tax, Withholding Tax, and other taxes administered by the SCDOR. They are automatically applying this tax relief for all applicable returns and payments; you do not need to take any additional action.

Washington

  • The Department of Revenue announced it will work with businesses that cannot file or pay their taxes on time due to the COVID-19 outbreak.

  • Affected businesses that owe Washington taxes may qualify for the following assistance:

  • Filing extension for excise tax returns

  • Late payment penalty waiver request

  • Businesses can request an extension or penalty waiver by sending a secure email in their My DOR account or by calling Revenue’s customer service staff at 360-705-6705, Monday through Friday 8 a.m. to 5 p.m.

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