Federal and State Tax Deadlines Extended
The COVID-19 crisis has created a seismic impact on companies, organizations, and individuals. The restrictions imposed, designed to prevent widespread transmission, has resulted in significant issues for many New Jersey and Pennsylvania businesses. To relieve some pressure, Treasury Secretary Steven Mnuchin announced last week a 90-day extension of the filing deadline from April 15, 2020, to July 15, 2020. On March 20, 2020, the IRS released Notice 2020-18, which provides specific guidance on the extension.
The Notice outlines that the extension not only applies to individual income tax returns but also includes trusts, estate, partnership, association, company, and corporate returns. There will be no penalties or interest charged on tax payments deferred during this period. The assessment of interest and penalties will resume on July 16, 2020. It is important to note that there are no extensions provided for the payment or deposit of any other taxes at this time.
- Pennsylvania Tax Deadline Extension – The Pennsylvania Department of Revenue announced a 90-day deadline extension to file their 2019 state income tax return to July 15, 2020. There will be a waiver of penalties and interest on income tax payments through the extension period. It’s important to note this extension applies to 2019 tax returns and payments and also includes estimated tax payments for the first and second quarters of 2020. The filing of electronic tax returns is being encouraged, especially for those entitled to a refund, as this will ensure timely payment. Both Keystone and Berkheimer have extended their filing deadlines to July 15, 2020.
- Philadelphia Deadline Extension – The Philadelphia Department of Revenue has announced that it will honor the federal extensions granted to businesses from the IRS for filing and payment until July 15, 2020, for the Business Income and Receipts Tax and the Net Profits Tax. This policy includes estimated tax payments
- New Jersey Tax Deadline – New Jersey has announced an extension of time to file state income tax and corporate tax business tax returns for 2019 from April 15, 2020, to July 15, 2020.
The extensions are a welcome relief for those impacted by the drastically changing economic conditions. Our tax team is monitoring the situation and will provide additional updates when they become available. In the meantime, if you need assistance with tax planning or other issues, we stand ready to help. For further information, click here to contact us.