Dear clients,
At BradyRenner CPAs, we wanted to provide you with an update on IRS and other tax changes resulting from the COVID-19 situation. Please note that these updates are accurate as of March 20, 2020 and are subject to change or revision as policy updates are announced.
Federal Tax Changes
The U.S. Department of the Treasury has announced that the tax payment deadline for the 2019 filing year are being delayed by 90 days. This means that most taxpayers will have until July 14, 2020 (90 days from the April 15th original date) to pay their 2019 tax obligation.
NOTE: Please take note that the deadline to file your taxes is still April 15th. It is essential to understand that this deadline has not changed. Some analysts are predicting that it may be changed, but as of today (March 20th), that has not happened. The filing deadline remains April 15, 2020.
In addition, the IRS has NOT announced any changes to the 2020 first quarter estimated tax payment deadline, which is normally April 15th.
Maryland Tax Changes
The State of Maryland has followed suit with a similar announcement that individual tax payments may also be delayed by 90 days without interest or penalties. And again, like the federal announcement, it does not impact the due date for tax filings themselves.
The state also announced a June 1 extension date will be applied for certain business returns with due dates during the months of March, April and May 2020. A press release states that this applies to businesses filing sales and use tax, withholding tax, admissions and amusement tax, as well as alcohol, tobacco and motor fuel excise taxes. Tire recycling fees and bay restoration fee returns are also included.
Business taxpayers who file and pay by the extended due date will receive a waiver of interest and penalties. If the IRS extends its April 15 filing deadline for corporate and individual income tax returns, Maryland will conform to the decision of the IRS according to officials.
Virginia Tax Changes
Ralph Northam, Governor of the Commonwealth of Virginia, announced that the individual state tax return filing deadline will remain May 1, 2020 but the payment deadline will be extended to June 1, 2020. In addition, businesses owning sales taxes in Q1 2020 may file for an extension request so that they may have until April 20, 2020 to do so.
District of Columbia Tax Changes
As of today, no changes have been announced by the District government in business or individual filing or payment deadlines, although again, this is subject to change.
>> In Summary:
Filing deadlines have not changed, and some payment due dates are in flux. We will keep you informed as more information becomes available. But for now, priority one remains to prepare, complete and file all applicable taxes in a timely manner. Our team is dedicated to making that happen in support of each and every client.
Thank you.
Sincerely,
Matt Brady, CPA
President