Compare ... Contrast ... Comply
COVID-19 has generated a lot of moving regulatory parts … including deferments in tax deadlines as well as changes in penalties and interest for late-filers. The Federal postponements have received the most “press”, with Virginia requirements being somewhat less visible. In this article, we’ll tackle both so there are no surprises to taxpayers in the Commonwealth.
At the end of March, in a joint announcement, the Treasury Department and IRS confirmed that the federal income tax filing due date is extended from April 15, 2020, to July 15, 2020. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax.
As part of this extension, taxpayers may defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This federal tax filing and payment relief is automatic and does not require taxpayers to take any additional steps to qualify.
Both individual taxpayers and businesses may need additional time to file beyond the July 15 deadline. That’s easily done via Form 4868 requests by individuals and Form 7004 for businesses. Note: Blair + Assoc stand ready to help as needed. A phone call or email is all it takes. We’ll respond promptly.
The IRS urges taxpayers who are due a refund to file as soon as possible. Most tax refunds are still being issued within 21 days.
Treasury and IRS will issue additional guidance as needed and continue working with Congress, on a bipartisan basis, on legislation to provide further relief to the American people. Blair+ Assoc will stay alert to important developments and keep you posted as they occur.
Relief for Virginia taxpayers affected by the COVID-19 crisis has been granted. Income tax payments due during the time-period April 1, 2020, to June 1, 2020, are now extended to June 1, 2020. This deferment applies to both individual and corporate income taxpayers for the 2019 tax year. Final payments, extension payments and the initial estimated payment for 2020 are included.
Important: Payments made after May 1 will incur interest assessments.
Late payment penalties will not be charged if payments are made by June 1, 2020. Thereafter, balances due will accrue interest penalties.
All income tax filing deadlines remain the same, including the May 1, 2020 individual income tax filing due date. One exception is an automatic 6-month extension to file for corporations (7 months for certain corporations). When at least 90% of your tax liability is paid by June 1, 2020, no penalties are imposed as long as you file your return and pay the remaining amount of your tax liability by November 1, 2020.
Businesses impacted by coronavirus can request an extension of the due date for filing and payment of their February 2020 sales tax return due March 20, 2020, for 30 days. When granted, businesses will be able to file and pay no later than April 20, 2020 with a waiver of any penalties.
Blair + Assoc stand ready to help as needed. A phone call or email is all it takes. We’ll respond promptly.