As a follow up to our March 20, 2020 blog entry, all federal income tax returns and income tax payments that were originally due on April 15 are now due on July 15. This includes self-employment tax as well. Originally, there was a limit on the amount that could be deferred, but Notice 2020-18 issued on Friday confirmed that there is no limit to the amount of the deferral. Note that second quarter estimated tax payments due on June 15 are not affected. They are still due on June 15.
Several states, including Maryland and the District of Columbia, have announced they will conform to the decision of the IRS for corporate and individual tax returns, although the District has yet to clarify that 2020 estimated tax payments can be delayed. Virginia has not yet announced whether it will extend April 15 or May 1 deadlines. The American Institute of CPAs has created a portal with updated information detailing the plans of each state. Note that this is a fast-moving story, so even if your state has nothing planned as of today, that may change by tomorrow.
As more IRS and state announcements are made, we will share them with you. Please contact your MCB Tax Advisor with any questions.
The information contained within this communication is provided for informational purposes only and is not intended as a substitute for obtaining accounting, tax, or financial advice from a certified professional. Continue to check back here for the most up to date tax information and changes in response to Coronavirus.