March 17, 2020 – San Francisco – To the community –
UPDATED: 3/24/2020 – INFORMATION SUBJECT TO CHANGE, RAPIDLY EVOLVING SITUATION
Amid the growing uncertainty related to the Coronavirus COVID-19 outbreak, Safe Harbor would like to assure you that we are here for you during this challenging time. For our latest analysis on COVID-19 tax changes, click here.
To safeguard the well-being of our staff and clients, we are enforcing policies that follow the latest guidelines provided by the Center for Disease Control (CDC) and other government agencies. As a result, the majority of our workforce is now working remotely and we have cancelled all non-essential travel. However, we want you to know that the Safe Harbor team is committed to providing exceptional service with as little disruption as possible.
In my 30-plus years in this profession, I have learned that the strongest relationships are forged during times of adversity. We understand that the COVID-19 crisis is unprecedented in the history of American business. Our aim is to be the trusted advisor you count on to help you navigate the risks and complexities of this challenging time. In addition, the IRS and FTB have extended due dates past April 15th to July 15, 2020. See details below.
Tax Planning in the Wake of COVID-19
PART ONE: IRS TAX RELIEF
In a 3.20.2019 IRS update tax returns are due July 15, 2020 or pushed out 90 days, tax payments for any amounts due will be delayed for 90 days. Bullet points below:
- Any April 15th tax due payments and extended out 90 days, unless there is a tax liability of $1 million or more for individuals and $10 million or more for corporations.
- The first quarter estimated tax payments if required are also extended out 90 days.
- There will be no interest of penalty during this 90-day payment deferral
- Returns are due July 15, 2020 without extension.
PART TWO: CALIFORNIA TAX RELIEF
The California Franchise Tax Board (FTB), administrators of the state’s Personal Income Tax and the Corporation Tax programs, has announced their initial relief plans for California taxpayers affected by the COVID -19 pandemic. In accordance with the Executive Order issued by Governor Newsom on March 12th, the following extended deadlines and other changes now apply:
- Partnerships and LLCS taxed as partnerships with March 15 due dates receive a 90-day extension to file and pay by June 15, 2020
- Individual filers with tax returns due April 15 receive a 90-day extension to file and pay by July 15, 2020
- Quarterly estimated tax payments due April 15 receive a 90-day extension to file and pay by July 15, 2020
- The FTB will waive interest and late filing and payment penalties that would otherwise apply
See the IRS website at https://www.irs.gov/coronavirus for more information.
Thank you for checking in with us, Please, also stay safe and healthy, we shall be talking soon.
Safe Harbor CPAs.