714.505.9000 cpas@hmwccpa.com

Tax Alert from HMWC

Treasury Secretary Steven Mnuchin has extended the federal deadline to make tax payments for 90 days due to the coronavirus pandemic. Individual, trust, and estate payments up to $1 million are extended to July 15 (if payments are normally due April 15). Corporations can defer up to $10 million in tax payments also until July 15. Penalties and interest will not be charged during this time. This only applies to income tax due on April 15 (including 1st quarter 2020 estimates) and at this time does not apply to any other types of Federal tax or 2nd quarter estimates.

The State of California Franchise Tax Board (FTB) has also extended deadlines to July 15 for filing and payment for all individuals and business entities for:

  • 2019 tax returns
  • 2019 tax return payments
  • 2020 1st and 2nd quarter estimate payments
  • 2020 LLC taxes and fees
  • 2020 Non-wage withholding payments

This extension does not include the federal dollar limitations – it is granted to all California taxpayers. Taxpayers do not need to claim any special treatment or call FTB to qualify for this relief. Additional details are located on the FTB website.

If you anticipate a tax refund, prepare and file your return by April 15.

Your HMWC team is here to answer questions and address concerns. Also, news and information is available at hmwccpa.com/covid19 and eidebailly.com/covid19.