New Federal extensions
The Treasury Secretary announced today that the April 15 filing deadline has been extended to July 15 for all taxpayers and businesses. This means taxpayers will no longer be required to file extensions for federal purposes. They also have until July 15 to pay, so long as they fall below the thresholds of $10 million due for C corporations, and $1 million due for all other taxpayers. If you have a refund coming you will want to file as soon as you can.
The information released today did not address the March 15 filing deadline, second quarter estimate payments (due June 15), payroll tax filing deadlines, or IRA contribution deadlines (by April 15). We will update you on this information as it becomes available. If no update is made be sure to fund your IRA by April 15.
Because the first quarter estimated payment is not due until July 15, and the second quarter estimated payment is due June 15, it seems reasonable to skip the second quarter estimated tax payment and add it (by making only one payment and using only the 1st quarter estimated tax voucher) to the first quarter estimated tax payment due July 15, thereby holding on to second quarter funds for an additional month. We will let you know if this (apparent oversight) changes. If you are not sure how to do this please let us know.
New California extensions
The FTB is postponing until July 15 the filing and payment deadlines for all individuals, trusts, and business entities for:
- 2019 tax returns;
- 2019 tax return payments;
- 2020 1st and 2nd quarter estimate payments;
- 2020 LLC taxes and fees; and
- 2020 Non-wage withholding payments.
The FTB extended their initial extension period of June 15, 2020, to be more consistent with the IRS extension relief of July 15. Like the IRS extension, the FTB extension applies to both filing and payment deadlines, but does not limit the payment extension to those below $1 million ($10 million for corporations), and applies to estimated tax and withholding payments.
Please reach out if you have questions.