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Additional tax filing & payment relief

Posted March 23, 2020
Last updated March 26, 2020

SEK is committed to keeping our clients informed with the latest developments surrounding the impact of the current COVID-19 situation on the upcoming tax filing deadlines.

Below is a summary of the revised
 federal deadlines as well as the states in our footprint:

Federal

The IRS has expanded tax return filing and payment relief under IRS Notice 2020-18. Prior guidance extended the due date for income tax returns and income tax payments from April 15, 2020 to July 15, 2020. The expanded relief allows for the 90-day deferral of Federal income tax payments due April 15, 2020 regardless of the amount owed, thus removing the previous limits of $1,000,000 for individuals and $10,000,000 for corporations.

The IRS has clarified that the deadline for funding contributions to Individual Retirement Accounts (IRAs) and Health Savings Accounts (HSAs) for the 2019 tax year have also been extended to July 15, 2020.

Additionally, the IRS has launched a People First Initiative program, where they are softening certain tax enforcement programs for the period April 1-July 15, 2020. Some of these initiatives during this time period include suspending payments under existing installment agreements, suspension of field collection activities, and not starting new field & correspondence examinations. More details on this program are available at https://www.irs.gov/newsroom/irs-unveils-new-people-first-initiative-covid-19-effort-temporarily-adjusts-suspends-key-compliance-program.

Maryland

The due date for Maryland personal and corporate income tax returns has also been extended until July 15, 2020. Income tax payments for 2019 can also be deferred until July 15, 2020 without interest or penalty.

Business-related tax filing and payments due in the months of March, April, and May 2020 have been extended to June 1, 2020.  This applies to business filings such as sales & use tax and withholding taxes.

Additionally, the State Department of Assessments and Taxation is automatically extending the due date of Personal Property Tax Return filings to July 15, 2020 for all entities.
 

Pennsylvania

The due date for Pennsylvania personal income tax returns has been extended to July 15, 2020.  Income tax payments for 2019 and the estimated quarterly tax payments for the first and second quarters of 2020 can also be deferred to July 15, 2020 without interest or penalty.

The due date for corporate income tax returns remains unchanged at May 15, 2020.
 

Virginia

Currently, income tax return deadlines remain unchanged. However, relief is provided for any income tax payment due between April 1 and June 1, 2020 will now be due June 1, 2020.
 

West Virginia

On March 25th, Governor Jim Justice has recommended that the filing and payment deadline for West Virginia also be extended to July 15, 2020. However, as of the time of this posting there has been no official directive issued by the West Virginia State Tax Department.

 

We expect this will continue to be an evolving situation with more information to come regarding state filing deadlines, etc. We will continue to update as more information becomes available. Please contact your Client Relationship Manager (CRM) with any questions or concerns.

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