We want to update you on the status of your tax payment and filing requirements for April 15, 2020. The IRS has just issued Notice 2020-17 which allows for taxpayers to defer payment of final 2019 tax payments and first quarter 2020 estimated tax payments in the maximum amount of $1m otherwise due April 15 until July 15 without interest or penalties. The notice also provides that there are no automatic extensions of time to file any returns otherwise due April 15.
The California Franchise Tax Board previously announced the extension of tax payments for those impacted, directly or indirectly, by the crisis for 60 days until June 15. California does not require an extension to be filed, they are automatic. It is possible that the FTB will match the 90 day payment extension of the IRS.
What does this mean for our clients? Federal returns will have to be filed or extended by April 15, but no payments will be required up to the $1m threshold. Second quarter 2020 estimated tax payments will be due June 15.
Our team continues to work at a high level, and we will be in touch regarding your individual circumstances.
Please let us know if you have any questions.