How Does the Coronavirus Tax Relief Impact You?

HORNE is continuing to monitor important implications to you as the nation addresses the impact of COVID-19. On Wednesday, the IRS extended the payment deadline for tax payments due 90 days, and today, the filing deadline was also extended 90 days to eliminate confusion for taxpayers.

Tax Day 2020 will move from April 15 to July 15 for both filing and payments due.

How does this impact you? Here are a few questions and answers.

When is the filing deadline for individual federal income tax returns? The filing deadline for tax returns is July 15, 2020.

What if I still can’t file by the deadline? Consider filing for an extension. The deadline to file an extension is July 15, 2020.

When is my tax payment due? Income tax payment deadlines for all individual returns are being automatically extended until July 15, 2020

What about self-employment and estimated tax payments? The Notice specifically addresses that this relief applies to federal income tax payments (including tax on self-employment income) due on April 15 for BOTH the 2019 taxable year and the 2020 taxable year, meaning estimated tax payments due on April 15 are also not due until July 15.  

What about trusts and estates? Yes, the relief applies to payments due from trust and estates.

What about corporations? Payment deadlines for Corporations (including consolidated groups) are automatically extended until July 15. No penalties and interest will accrue during this time. 

Do I have to do anything to qualify for the relief? No, IRS will automatically provide the relief. You don’t need to file any additional forms or call the IRS to be eligible.

When will interest and penalties start to accrue? Penalties and interest will begin to accrue on any remaining unpaid balances on July 16.

What about refunds? Refunds are not affected. If you are expecting a refund, you should file as early as possible. 

What about State tax deadlines? State and local taxing authorities are addressing relief separately. So far we know: 

Alabama - According to the Alabama Department of Revenue, the due date for filing State income tax, FIET, and BPT returns and making State income tax, FIET, and BPT payments due April 15, 2020, is automatically postponed to July 15, 2020. There is no limitation on the amount of the payment that may be postponed.

Louisiana - The Louisiana Department of Revenue has extended the deadline for State income tax to July 15, 2020. The extension applies to Louisiana individual, corporation, fiduciary and partnership income tax returns and payments.

Mississippi - The Mississippi Department of Revenue has extended the deadline to file and pay 2019 individual income tax and corporate income tax until May 15, 2020. Withholding tax payments for the month of April are also extended until May 15, 2020. The extension does not apply to sales tax, use tax, or any other tax types. 

Tennessee - The Tennessee Department of Revenue has extended the due date for filing and paying Hall income tax, franchise tax and excise tax from April 15, 2020 to July 15, 2020. Taxpayers will have until July 15, 2020, to file returns and make any payments (including quarterly estimated payments) originally due on April 15, 2020. The October 15, 2020, six-month extension date for the calendar year 2019 return remains unchanged. 

For a continually updated list of State guidance from the AICPA, click here.

As we communicated to you this week, your HORNE team is prepared to help you navigate this ever-changing environment. 

If you have questions or concerns about how this impacts you, please feel free to reach out to a member of the HORNE Tax team.