COVID 19 Update: Tax Filing/Payment Deadlines (Updated 4/10/20)

The Federal government has extended tax season, extension payments, and the 1st and 2nd quarter 2020 estimated tax payments to July 15, 2020 for Individual 1040, Fiduciary 1041, Corporate 1120, and 709 Gift tax returns. Each state will make a decision to adopt the Federal Extension Due Date. Many states are waiving penalties for late filing and underpayment penalties.

With this in mind, we have requested that our staff take measures to, first and foremost, protect themselves and their families. Many are working remotely and we have asked that they work a traditional work week schedule vs. working overtime as we normally would at that time of year.

What does this mean for your tax return? The likelihood that your return will be delivered to you by April 15th will depend upon the timing of when we received your tax materials. There will be more returns this year that will be delivered by July 15th or go on extension. Rest assured that this does not increase the likelihood of audit, isn’t a reflection on you as a taxpayer, and that the vast majority of taxpayers throughout the country will file by July 15th.

We encourage you to submit your tax documents rather than waiting. We are committed to processing returns as quickly as possible. Many of you are due a refund and we want to ensure that you receive it in a timely manner. Others may owe, but our goal is to file your return as soon as possible, which still allows you to delay your tax payment until the new deadline. Many unknowns are still ahead and we hope to avoid the temptation to “relax” due to an extended filing date.

Should I pay my taxes now or later? Since you have until July 15, 2020 to pay your taxes, we suggest that you wait to pay but to set aside funds to pay the taxes on or before July 15, 2020. There will be no penalties or interest for waiting until July 15, 2020.

What about the STATE returns? Each state will make a decision to adopt the Federal Extended Due Date. Many states are waiving penalties for late filing and underpayment. We will continue to monitor state guidance and update as it becomes available.

As of 4/2/20, according to the AICPA, all states with a personal income tax have extended their 4/15 due dates (38 with a 7/15 deadline, and 8 states with other deadlines – as detailed below).

• 38 states (including DC) [AL, AR, AZ, CA, CO CT, DC, DE, GA, IL, IN, KS, KY, LA, MA, ME, MD, MI, MN, MO, MT, NC, ND, NE, NJ, NM, NY, OH, OK, OR, PA, RI, SC, TN, UT, VT, WI, WV] and USVI have changed filing and payments deadline from 4/15/20 to 7/15/20.
• 8 states [(IA (7/31), HI (7/20), ID (6/15), NH (6/15), MS (5/15), OR (4/30), VA (6/1), WA (6/15)] and Puerto Rico (6/15) have changed to other filing and payments deadline.

Here’s more detailed information as as it relates to states important to many of our clients:

• DELAWARE – adopted Federal Extended Due Date. DE returns due on April 30, 2020 will now be due on July 15, 2020. Estimated tax payments due on April 30, 2020 are extended to July 15, 2020. Note that second quarter payments remain due on June 15, 2020. See DE Division of Revenue notice.
  • City of Wilmington – the due dates of all 2019 earned income tax returns as well as due date for payment is postponed to July 15, 2020, which shall be treated as the original due date of such returns. No interest or penalties will accrue for the period from April 15, 2020 through July 15, 2020. NOTE 1: There is no postponement for remittance of withholding taxes and filing of withholding tax returns. NOTE 2: For City nonresidents who have City withholding and file for wage tax refunds based on the portion of their wages earned outside the City, no change was needed because these returns are not “due” on April 15. According to the statute, a wage tax refund claim for 2019 is timely if it is filed by December 31, 2022.
• CONNECTICUT – adopted Federal Extended Due Date. CT 1040 returns due on April 15, 2020 will now be due on July 15, 2020. Estimated tax payments due on April 30, 2020 and June 15, 2020 are extended to July 15, 2020. Corporate returns: Form CT-1065/CT-1120SI – Filing date extended to April 15, 2020; payment deadline extended to June 15, 2020. Form CT-1120 – Filing date and payment deadlines extended to June 15, 2020. Form CT-990T – filing date and payment deadlines extended to June 15, 2020. See the Department of Revenue Services notice.
• MARYLAND – adopted Federal Extended Due Date. MD returns due on April 15, 2020 will now be due on July 15, 2020. Estimated tax payments due on April 30, 2020 are extended to July 15, 2020. Business-related tax returns AND payments that were not collected in March, April and May are due June 1, 2020. See Maryland due dates chart. NOTE: The extension for filing returns and payment of income tax does not affect the filing of estate tax returns or the payment of estate tax.
• MASSACHUSETTS – MA moved the state personal income tax filing deadline to July 15, 2020, consistent with the federal government. See MA press release.
• NEW JERSEY – UPDATE 4/1: NJ individual and corporate returns due on April 15, 2020 are extended to July 15, 2020.
• NEW YORK – UPDATE 3/30: NY personal income, fiduciaries (estate and trusts), and corporation tax returns originally due on April 15, 2020, have been extended to July 15, 2020. In addition, all related tax payments due on April 15, 2020, may be deferred to July 15, 2020, without penalties and interest, regardless of amount owed. See NY Department of Taxation announcement and additional questions and answers.
• PENNSYLVANIA – adopted Federal Extended Due Date. PA returns due on April 15, 2020 will now be due on July 15, 2020. Estimated tax payments due on April 30, 2020 and June 15, 2020 are extended to July 15, 2020. See PA Department of Revenue notice.
  • City of Philadelphia – filing and payments extended to July 15, 2020 for businesses for the Business Income and Receipts Tax and the Net Profits Tax. This policy includes estimated payments.
• VIRGINIA – All income tax filing deadlines remain the same, including the May 1, 2020 individual income tax filing due date. However, Virginia already has an automatic, 6-month extension to file (7 months for certain corporations). Any income tax payments due during the time period of April 1, 2020 to June 1, 2020, will now be due on June 1, 2020. This includes individual and corporate income taxes paid to Virginia Tax. Visit VA website for the latest updates.