2020-07: More extension news - Spidell

2020-07: More extension news


Clarification: This flash e-mail originally stated extensions are not needed for federal purposes. The new federal filing extension means taxpayers will not file an extension on April 15, and that they will have until July 15 to file without extension. The IRS has not issued any written guidance on this issue, so at this time we are not certain how further extensions will work. But information is rapidly changing, so click here for more recent developments.

New federal extensions

The Treasury Secretary announced today that the April 15 filing deadline has been extended to July 15 for all taxpayers and businesses. This means taxpayers will no longer be required to file extensions for federal purposes. They also have until July 15 to pay, so long as they fall below the thresholds of $10 million due for C corporations, and $1 million due for all other taxpayers.

The information released today did not address the March 15 filing deadline, second quarter estimate payments, payroll tax filing deadlines, or IRA contribution deadlines. We will update you on this information as it becomes available.

New California extensions

The FTB is postponing until July 15 the filing and payment deadlines for all individuals, trusts, and business entities for:

  • 2019 tax returns;
  • 2019 tax return payments;
  • 2020 1st and 2nd quarter estimate payments;
  • 2020 LLC taxes and fees; and
  • 2020 Non-wage withholding payments.

The FTB extended their initial extension period of June 15, 2020, to be more consistent with the IRS extension relief. Like the IRS extension, the FTB extension applies to both filing and payment deadlines, but does not limit the payment extension to those below $1 million ($10 million for corporations), and applies to estimated tax and withholding payments.

Like the IRS, the FTB is also extending this relief to all taxpayers, not just those “affected by the COVID-19 pandemic.”

Sign up for our March 26, COVID-19 and Filing Extensions: What Tax Pros Need to Know, and get details of the Families First Coronavirus Response Act and extended tax season deadlines. Click here to register online.