Tax

CA FTB Extensions to file and pay

Source Franchise Tax Board

• Individuals October 15, 2020

• Partnerships October 15, 2020

• C Corporation November 16, 2020

• S Corporation September 15, 2020

• LLC - please refer to deadlines above, filing due date depends on tax status

IRS guidance on April 15, 20202 tax deadline

Source Internal Revenue Service

Affected person

- any person with a Federal income tax payment due April 15, 2020

FILING due date REMAINS April 15, 2020 UNLESS filing for an extension

PAYMENT due date POSTPONED to July 15, 2020

-          the due date for making Federal income tax payments due April 15, 2020, in an aggregate amount up to the Applicable Postponed Payment Amount, is postponed to July 15, 2020

Applicable Postponed Payment Amount

-          individuals $1,000,000 regardless of filing status*

-          corporations up to $10,000

*_For example, the Applicable Postponed Payment Amount is the same for a single individual and for married individuals filing a joint return. In both instances the Applicable Postponed Payment Amount is up to $1,000,000

Payment Deadline Extended to July 15, 2020

Source Internal Revenue Department

Deadline for PAYMENT of federal income taxes is pushed by 90 days meaning no penalties and interest is assessed on late payments; for filing extension it is important to file for the 6 months extension - individuals and businesses

March 18, 2020 update: IRS indicates that individual taxpayers do not need to file any additional forms or call the IRS to qualify for this relief.



House-passed Coronavirus Response Legislation

Source US Department of Treasury - Statement of Treasury Secretary Mnuchin

• dollar for dollar reimbursement for coronavirus related sick leave costs

• cash deposited with the IRS used to pay sick leave wages

• Treasury will make advances to small businesses to cover such costs for businesses that would not have sufficient taxes to draw from

• currently no extension announced for tax filings due April 15, 2020; however, taxpayers (individuals and businesses) can efile for extensions; NOTE: extension to file does not equal extension to pay!