As a response to COVID-19 pandemic, the federal and state of California government agencies have issued the below relief related to tax filings and tax payments.
IRS TAX PAYMENT EXTENSION:
The IRS announced today they will give an additional 90-day extension of tax payments.
- Individuals and business that have an April 15 deadline will be able to extend their tax payments for up to 90 days;
- Individuals can only defer up to $1 million in tax liability.
- Business can only defer up to $10 million in tax liability.
It appears interest and penalties on the late payment of tax liabilities below the amounts identified above will be waived. No specifics were given regarding waiving the deferral of late filing penalties for either the March 15 or April 15 deadline. It is recommended to either file or extend your tax return on or before the due date of the return.
No statement was made regarding extending the quarterly estimated tax payment due April 15, 2020.
CALIFORNIA TAX FILING AND TAX PAYMENT EXTENSION:
The state of California has offered the following relief to its tax payers.
- [Updated March 18, 2020] Any business entity with a California return or payment due between March 15 and June 15 qualifies for an extended deadline of June 15, 2020. This includes Corporations, S-Corps, LLCs, Partnerships, and other entity types with returns due during this period now have an extension to file and pay by June 15.
- Individual filers whose tax returns are due on April 15 now have a 60-day extension to file and pay by June 15.
- Quarterly estimated tax payments due on April 15 now have a 60-day extension to pay by June 15.
Taxpayers claiming the special COVID-19 relief should write the name of the state of emergency (for example, COVID-19) in black ink at the top of the tax return to alert FTB of the special extension period. If taxpayers are e-filing, they should follow the software instructions to enter disaster information.
We will do our best to get more information out to you as it becomes available. Feel free to contact me with any specific questions you may have concerning these extensions.