The Treasury Department and the Internal Revenue Service are providing special payment relief to individuals and businesses in response to the COVID-19 Outbreak.
The filing deadline for tax returns extended to July 15, 2020. The IRS urges taxpayers who are owed a refund to file as quickly as possible. For those who can't file by the July 15, 2020 deadline, the IRS reminds individual taxpayers that everyone is eligible to request a six-month extension to file their return.
Payment Relief - Individuals
Income tax payment deadlines for individual returns, with a due date of April 15, 2020, are being automatically extended until July 15, 2020, for up to $1 million of their 2019 tax due. This payment relief applies to individuals, trusts and estates. IRS will automatically provide this relief to taxpayers. Taxpayers do not need to file any additional forms or call the IRS to qualify for this relief.
Payment Relief - Corporations
For C Corporations, income tax payment deadlines are being automatically extended until July 15, 2020, for up to $10 million of their 2019 tax due.
Estimated Tax Payments
This relief also includes estimated tax payments for the tax year 2020 that are due on April 15, 2020.
Penalties and Interest
Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020. If a tax return or extension is filed by April 15, 2020, the taxpayer will automatically avoid interest and penalties on the taxes paid by July 15.
The Franchise Tax Board announced special tax relief for California taxpayers affected by the COVID-19 pandemic. Affected taxpayers are granted an extension to file 2019 California returns and make certain payments to July 15, 2020, for all tax filings and payments due between March 15, 2020, through July 15, 2020.
FTB Business Calendar Year Filers:
COVID-19 Due Dates for 2020 Annual Tax Payments and Estimated Annual Tax Fees is also extended to July 15th, 2020 for LLC's, SMLLC's, S Corporations and C Corporations
For more information: https://www.ftb.ca.gov/about-ftb/newsroom/covid-19/extensions-to-file-pay.html
SELF EMPLOYED INDIVIDUALS:
Application Process: In the event of a disaster, the affected state will publish announcements about the availability of Disaster Unemployment Assistance. To file a claim, individuals who are unemployed as a direct result of the disaster should contact their State Unemployment Insurance agency. Individuals who have moved or have been evacuated to another state should also contact the state agency. Applications for Disaster Unemployment Assistance (DUA) must filed by an individual within 30 days of the announcement of the availability of DUA in the state. Individuals must follow the instructions in the announcement and file for DUA based on the filing methods used by the state (i.e. in person, mail, telephone, or internet). So, it will be an application with California EDD. www.Benefits.gov
Pending House of Representatives and Presidential approval:
Coronavirus Rescue bill increases “maximum unemployment benefit by $600 per week and ensures that laid-off workers, on average, will receive their full pay for four months. It ensures that all workers are protected whether they work for businesses small, medium or large, along with self-employed and workers in the gig economy.” https://www.capitolnewsforum.com/post/senate-cuts-coronavirus-rescue-deal-schumer-s-explanation
What can be done today:
Freelancers relief fund: https://www.freelancersunion.org/resources/freelancers-relief-fund/
Here are some free filing options for those with simple returns to utilize that are expecting or getting refunds:
The IRS also offer Free E-filing Services: https://www.e-file.com/?utm_source=google&utm_campaign=free_broad&utm_term=%2Bfree%20%2Btaxes&ccid=246276516&gclid=Cj0KCQjw6sHzBRCbARIsAF8FMpXJgNwJ9IlSUvWqeSst1f9Sh49ddVlz6yaoHD8vYHhd31hPKo13S7caAmTDEALw_wcB
State of CA free Filing Option: https://www.ftb.ca.gov/file/ways-to-file/online/calfile/index.asp
January 29, 2020: Last day to e-file W-2 forms for the January 31, 2020 Deadline
January 31, 2020: Last day to provide W-2 forms to employees and 1099_MISC forms to contractors & Last day to e-file 1099 forms for timely processing with the IRS
March 15th, 2020: Business Tax Filing Deadline
April 15th, 2020: Individual Tax Filing Deadline
May 15, 2020: Nonprofit Tax Filing Deadline
July 15, 2020: CA Payment Relief for Individuals
July 15, 2020: IRS Payment Relief for Indiv's & C Corp's up to 10M
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