The Internal Revenue Service (IRS) and the California Franchise Tax Board (FTB) addressed tax relief measures for

taxpayers affected by the coronavirus pandemic.

These measures include a 90-day extension of time to file federal individual and business tax returns and pay certain federal income tax payments to July 15, 2020 and a 90 to 120-day extension of time to make California tax payments (also to July 15, 2020).  More to follow in the near future regarding the U.S. Treasury’s announcement issued March 20, 2020.

California Tax Filing and Payment Relief

To conform with the IRS guidance under Notice 2020-17, the FTB also announced, on March 18, 2020, that it will extend until July 15, 2020 the time to file 2019 California tax returns and make payments that were otherwise due between March 15, 2020 and July 15, 2020.

Also, to conform with the federal tax relief provisions, the FTB simplified its definition of an “affected taxpayer” to mean all individuals and business entities. Note, taxpayers claiming the COVID-19 relief no longer need to claim any special treatment nor call the FTB to qualify.

State Payroll Taxes

The California Employment Development Department (EDD) announced that employers directly affected by COVID-19 may request up to a 60-day extension of time to file their state payroll reports and/or deposit payroll taxes without penalty or interest. The EDD has not provided any insight into what it means by “directly” affected.

To obtain the EDD payroll relief, a written request for extension must be received within 60 days from the original delinquent date of the payment or return. It is not known at this time whether the EDD will update its relief based on the FTB’s recent announcement.

What does the Tax Relief Due to COVID-19 Pandemic mean to me?

  1. The IRS and California have extended the filing deadline and payment due date to July 15, 2020.
  2. If you have Federal Q2 payments, they are still due on or before June 15, 2020 (our goal would be to finalize your return before any further such payments are due, as long as we have complete information from you).

Please do not hesitate to come to us with your questions or concerns, we are here for you as we all navigate through these uncharted waters. Please visit our website to find out the latest information regarding additional tax updates due to the COVID-19 at www.gscpa.com.

Your Gumbiner Savett Inc. Tax Team