Updated: March 21, 2020 at 1:50 PM
As the coronavirus pandemic spreads and communities across the nation try to continue operating while maintaining social distancing policies, many people have been asking questions about tax deadlines. The federal tax payment deadline had been extended earlier in the week, but information continued to come out as the week continued.
Federal Income Tax Deadline
On Friday, March 20, 2020, the IRS issued Notice 2020-18 Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic, announcing that tax filings and payments, including estimated tax payments, for all federal income taxes, including self-employment tax, will now be due on July 15, 2020, a 90-day extension. The extension came days after the payment deadline extension that had been announced by the Treasury Secretary, which allowed deferring tax payments up to $1 million for individual income taxes and up to $10 million for corporations. Under the new guidance, there is no cap.
No forms have to be filed to take advantage of this extension. The announcement only applied to the federal deadline. Each state will still need to make a decision on whether or not they will extend their deadlines.
Pennsylvania Tax Deadlines
Pennsylvania law states that the filing deadline for personal income tax returns must align with the federal deadline, which is now July 15, 2020. The Pennsylvania Department of Revenue also made an announcement that they will be waiving penalties and interest on 2019 personal income tax payments and estimated payments for the first and second quarters of 2020 through the new deadline of July 15, 2020.
Other tax deadlines, including local tax deadlines, are not impacted and would need to change on a state level, which has not happened at the time of this update.
Accelerated Sales Tax Prepayments
On March 20, 2020, the Pennsylvania Department of Revenue said that they would be waiving penalties for businesses that are required to pay accelerated sales tax (AST) prepayments by the March 20, 2020 deadline. They are also waiving the AST prepayment requirement for April sales tax payments and asking businesses to remit the sales tax collected in March.
Pennsylvania Department of Revenue Closure
The Pennsylvania DOR is currently closed but continues to process electronically-filed tax returns and payments. For any notices of assessment that required a response by a certain date, the deadline to respond is suspended until the DOR offices re-open.
Maryland Tax Deadlines
Maryland has extended the filing deadline for individual and business income tax returns and payments that were due on April 15, 2020 to July 15, 2020.
June 1, 2020 is the deadline for certain business returns that were due during the months of March, April and May 2020 for businesses filing sales and use tax, withholding tax, and admissions and amusement tax, as well as alcohol, tobacco and motor fuel excise taxes, tire recycling fee and bay restoration fee returns.
As we collect more information regarding tax-related deadlines and delays, we will update this page.
Please contact your BSSF Advisor if you have any questions.
Disclaimer: This communication is intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.