Federal Changes
US Treasury Secretary Mnuchin announced today that the filing deadline for tax returns due on April 15 has been postponed to July 15. This comes on the heels of an announcement earlier in the week regarding the timing of certain Federal tax payments also being deferred to July 15.
Individuals and businesses who have a Federal income tax payment normally due on April 15, 2020 may delay that payment until July 15, 2020 up to $1,000,000 for individuals and $10,000,000 for corporations. In addition to income tax, this delay includes Federal tax payments on self-employment income, but it does not include any other type of Federal tax.
First quarter 2020 Federal estimated tax payments have also been deferred to July 15. The limits above apply in the aggregate for all payments due on April 15.
During the period of April 15, 2020 to July 15, 2020, no penalty, interest, or additional tax for failure to pay Federal income taxes will be assessed.
California Changes
The California Franchise Tax Board announced an extension of time to file California tax returns and to make certain tax payments to June 15, 2020. Tax filing and tax payment deadlines that would normally occur between March 15, 2020 through June 15, 2020 are now due on June 15.
Taxpayers who choose to delay their California tax filings and tax payments must name the state of emergency relief being requested by writing "COVID-19" at the top of their tax returns.
We are monitoring the situation closely and will continue to keep you updated.