Can’t pay your taxes by the April 15th deadline? If you need more time, the federal government is granting filers an extra 90 days to pay income taxes that are due, up to $1 million in tax owed by individuals and up to $10 million for businesses. During this period, you will not be subject to interest and penalties for what you owe for 2019.
In California specifically, Governor Newsom has issued a delay for the deadline for state tax filing by 60 days for individuals and businesses unable to file on time. This is based on compliance with public health requirements related to COVID-19 filings.
Located in another state outside of California? The AICPA has provided tax filing guidance and tax developments for the coronavirus pandemic for individual states. The AICPA is also a great resource for news and other resources to keep the profession up-to-date. You can find a list of available resources here.
The goal of this delay is to help individuals and businesses during these tough economic times. Those who do owe may find that waiting to submit their returns will reduce concerns of cash-flow with the extra 3 months provided to file.
If you are able to file your taxes on time, you are still encouraged to do so, for it may be to your benefit. One of the main reasons for this is because you may want to utilize any refunds you receive to help you and your family during this difficult time our economy is facing due to COVID-19 (coronavirus). On March 6th, the IRS processed over 65 million income tax returns. According to the IRS, the average filer received about $3,000.
For more information on requesting a tax extension, read our blog. If you would like to learn more about how we can help you and your business needs during tax season, reach out to our team. For more information on other tax and business topics, check out our blog.