The Corona Virus and Your Income Taxes
Spread the love

California is under the Shelter in Place mandate and it’s a little freaky out there. All these crazy changes to our way of life, our way of shopping (do you have enough toilet paper yet?), to our economy. Temporary, we expect. We hope. Of course one thing doesn’t ever change, does it? And you know I’m talking about taxes.

The IRS has just announced today that the new filing and payment deadline for your 2019 individual income tax return is July 15, 2020. You do not have to file any additional paperwork to enjoy the new extension. It is automatic.

And if you are anticipating a refund, it is wise to file early so you can get your money sooner.

Having to pay is a different story. It’s natural to want to put that off to the last minute. The good news is that the IRS has extended your payment deadline to July 15, 2020. So if you have a liability, you may pay it at that time without being charged any interest or penalties. This good news includes an extension for the payment of your first installment of 2020 estimated tax payments. Those may be paid by July 15 as well without penalty or interest.

According to Spidell Publishing, an education resource for tax professionals:

“Any person with a federal income tax payment due April 15, 2020, who is affected by the COVID-19 emergency is eligible for the following relief:

  • Deferral of up to $1 million in aggregate for all taxpayers other than C corporations, regardless of filing status (so the $1 million limit applies to joint filers); or
  • Deferral of up to $10 million in aggregate for C corporations (the $10 million limit applies at the consolidated group level if the corporation is part of a consolidated group).

The relief only applies to:

  • 2019 income tax payments due on April 15, 2020 (including self-employment taxes); and
  • The April 15, 2020, estimated income tax payment due on April 15, 2020, for the 2020 taxable year (including self-employment taxes).

This federal relief is granted under IRC §7508A, which California conforms to. As a result, we believe California conforms to the July 15 payment extension.”

Stay safe, stay healthy. We will make it through this!

Leave us a Reply

Your email address will not be published. Required fields are marked *

* *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top
© 2019 Taxpertise | Bonnie Lee, E.A. | Ph: 707.935.1755 Fax: 707.938.1891 | 450 2nd Street West, Sonoma, CA 95476