COVID-19 Tax Relief: IRS Extends Tax Payment and Filing Deadlines; Some States Grant Tax Relief (UPDATED)
March 24, 2020
Please note that this alert reflects information that was current as of 11:21 AM on March 24, 2020.
In IRS Notice 2020-18, the IRS announced relief for all taxpayers whose tax payment or tax return would normally be due on April 15, 2020: the deadline to pay taxes or file a return is extended by 3 months to July 15, 2020. (IRS Notice 2020-18 superseded and replaced IRS Notice 2020-17, which only extended the payment deadline.)
Deferral of filing and payment due date:
For all individual and business taxpayers, both the filing and payment deadlines for federal income tax returns and federal income tax payments that would normally be due on April 15 have been extended by three (3) months, to July 15.
The deferral relief applies to (1) federal income tax returns that would normally be due on April 15, 2020, in respect of 2019, (2) federal income tax payments that would normally be due on April 15, 2020, in respect of 2019, and (3) federal estimated tax payments that would normally be due on April 15, 2020 in respect of 2020. The payment relief extends to payments of self-employment tax.
This will provide welcome relief to filers and preparers alike. Taxpayers who are in a position to file and expect to receive a refund should file as soon as possible so that such refund is processed and paid.
State level relief:
The American Institute of Certified Public Accountants (AICPA) is maintaining a state-by-state chart of tax relief measures (note that rules and relief are changing rapidly and the chart may not reflect the absolute latest information).
Maryland has officially extended the filing and payment deadlines to July 15. With respect to certain business taxes (sales and use, withholding, admissions & amusement, excise, and certain other taxes) that would normally require a Maryland filing in March, April, or May, Maryland has extended the filing deadline to June 1.
Virginia has extended its income tax payment to June 1 for all income taxes due between April 1 to June 1, but has not extended the filing due date. No penalties will apply for late payments, but interest will still accrue.
Washington DC has announced an extension to July 15 for individual and fiduciary income tax returns, partnership tax returns, and franchise tax returns. The payment deadline is extended to July 15 as well.
The contents of this Alert are for informational purposes only and do not constitute legal advice. If you have any questions about this Alert, please contact the Shulman Rogers attorney with whom you regularly work or a member of the Shulman Rogers Tax Law Group.