Keep Calm and File Tax Returns!
To our valuable clients. We are open. Our staff is versed in a secure virtual private network (VPN) as well as receipt of telephone calls while working remotely. We are accepting accounting and tax work as scheduled prior to the COVID 19 pandemic. Our workflow is functioning normally.
We have successfully placed individual and business income tax returns to include partnerships (LLCs), S Corporations as well as C Corporations. That being said, California and the United States have changed the income tax and filing payments deadlines for April 15th 2020.
California has delayed the due dates for the first and second quarter 2020 estimates (that means the $800 fees we normally pay on April 15th are now due on July 15th).
California is waiving penalties and interest for 2019 tax return payments. Unfortunately, the instructions do not clarify whether California will waive estimate penalties (penalties for not paying during the tax year such as your $800 fee) or failure to pay penalties.
The Internal Revenue Service has extended the Individual and C-Corporate Tax returns (forms 1120) from April 15th to July 15th 2020.
The Internal Revenue Service has extended the first quarter estimate payment due date from April 15th to July 15th. This includes individuals, trusts, estates, C and S Corporations as well as partnerships. The IRS has not clarified whether payments due for 2019 income tax returns normally paid on April 15th will avoid estimate or failure to pay penalties.
The California Department of Tax and Fee Administration (CDTFA), the sales tax agency, normally grants extensions and penalty waivers, however at this time an extension and penalty delay specifically for COVID 19 is not available.
The Employment Development Department (EDD) (the payroll tax agency) will grant a 60 day extension for filings and deposit payments for states of emergency and will consider COVID 19 a state of emergency.
Keep Calm and File Tax Returns!
