As the COVID-19 crisis evolves its impact expands in more and more areas of our lives and business, including taxes. The federal government has announced a deferral for 2019 tax payments and tax filings until July 15, 2020. Many states are evaluating the situation and some have issued guidance on their own extensions related to tax filings and payments.
On Saturday, March 21st, Pennsylvania extended the personal income tax deadline until July 15, 2020. In addition, the Department will waive penalties and interest on 2019 personal income tax payments through July 15, 2020. Additional information on Department’s response to COVID-19 may be reviewed on the Department’s website at https://www.revenue.pa.gov/Pages/default.aspx.
California has extended due dates for individuals and businesses until at least June 15, 2020. The extension applies to partnerships, LLCs taxed as partnerships, individuals and estimated tax payment. California is requesting that any taxpayer request relief include “COVID-19” in black ink at the top of the tax return.
Maryland has also issued guidance that the Comptroller’s office will not impose any interest or penalty if 2019 tax payments are made by July 15, 2020. The new guidance does not impact taxpayers already on a conventional federal extension.
California and Maryland, along with the federal government, have reacted to the developing cash flow concerns created by COVID-19, by issuing extension guidelines to taxpayers. Updates from other states are being issued daily and it is expected many more state and local jurisdictions will follow suit. It will be important to track and understand the specifics (tax payment only or payment and tax filing) of each deadline extension granted by the state or local governments.
Stay tuned to the Schneider Downs website for additional extension updates.
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Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.