Clarification on Federal, State, and Local Tax Filing and Payment Deadlines
In the tax world, today does not feel like any April 14th we have experienced in previous years. What we are experiencing are questions from clients asking for clarification as to what (if any) tax form needs to be filed, or what tax should be paid by midnight on April 15th. With the abundant number of announcements, extensions, and updates from Federal, State and Local entities, today our Daily Update will focus on deadlines, extensions and payments.
Federal
On March 21, 2020, the IRS and US Treasury announced the 2019 income tax filing and payment deadlines for all taxpayers who file and pay their Federal income taxes on April 15, 2020, are automatically extended until July 15, 2020. This relief applies to all individual returns, trusts, and corporations and is automatic. Taxpayers do not need to file any additional forms or call the IRS to qualify.
This relief also includes 2020 estimated tax payments that are due on April 15, 2020 and June 15, 2020.
Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020.
On April 9, 2020, the IRS extended more tax deadlines to cover individuals, trusts, estates corporations and others. To learn more, visit https://www.irs.gov/newsroom/irs-extends-more-tax-deadlines-to-cover-individuals-trusts-estates-corporations-and-others
Delaware
Corporate, fiduciary and personal income tax returns that would be due on either April 15, 2020 or April 30, 2020 will now be due on July 15, 2020.
Estimated personal income tax payments that are due on April 30, 2020 are extended to July 15, 2020. Please note that the second quarter payments remain due on June 15, 2020.
As of today, no formal announcement to extend corporate estimated tax payment due dates has been made.
For a complete list of due dates in the State of Delaware, visit: https://revenuefiles.delaware.gov/2020/TIM2020-01_COVID-19_filing_extension.pdf
New Jersey
Bill S-2338 extending the time to file and pay 2019 calendar year Individual Gross Income Tax, Partnership, and Corporation Business Tax originally due on April 15, 2020 has been signed into law. These taxpayers will have until July 15, 2020 to file returns and make applicable tax payments, which includes 1st quarter 2020 estimated tax payments.
For a complete list of due dates in the State of New Jersey, visit https://www.state.nj.us/treasury/taxation/duedates.shtml
Pennsylvania
Personal income tax returns that would be due on April 15, 2020 have been extended to July 15, 2020.
2020 estimated tax payments due April 15 and June 15 have been extended to July 15, 2020.
For a complete list of due dates in the State of Pennsylvania, visit https://www.revenue.pa.gov/Pages/COVID19.aspx#PITDeadline
For questions regarding tax filing deadlines, extensions, or payment dates for other states, please visit state tax administration website.
City of Philadelphia
Good news for individuals who work in the City of Philadelphia, but do not live in the City. On April 14, 2020, the City of Philadelphia provided wage tax policy guidance for non-resident employees. This is important for employees who normally work within the City limits, but due to the work at home order, are now working outside of the City limits. According to the update, “Non-resident employees who had Wage Tax withheld during the time they were required to perform their duties from home in 2020, can file for a refund with a Wage Tax reconciliation form in 2021. Employees file for a refunds after the end of the tax year and will need to provide a copy of their W-2 form.”
Philadelphia Business Income and Receipts Tax (BIRT) and Net Profits Tax (NPT) returns that would be due on April 15, 2020 have been extended to July 15, 2020. The School Income Tax (SIT) return is due April 15, 2020. To read the entire update regarding Business Income & Receipts Tax (BIRT), Net Profits Tax (NPT) filing and payment extensions policy, click here.
Pennsylvania Local Business Privilege Tax (BPT) Returns
Some of the local municipalities have extended the due date for BPT returns. A current list of the revised due dates can be found here.
Additional Resources
IRS: Filing and Payment Deadline Extended to July 15, 2020 – Updated Statement: https://www.irs.gov/newsroom/payment-deadline-extended-to-july-15-2020
Federation of Tax Administrators/State Tax Agency links: https://www.taxadmin.org/state-tax-agencies
DISCLAIMER: The WM Daily Update COVID-19, COVID-19 Business Resources and COVID-19 Client News Alerts and other related communications are intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.
Wouch Maloney
