In response to the COVID-19 pandemic, there are several changes to the traditional tax deadlines and new developments that impact you and your business. Below is a summary of the updates occurring at the federal and state level.
Federal Developments – Summary
- Federal income tax filings and payments originally due on April 15, 2020 have been extended to July 15, 2020 without assessment of interest or penalty.
- 1st Quarter Estimated Tax Payments have also been extended to July 15, 2020;
- Other types of federal tax – No deferral is currently provided for the payment or deposit of any other type of federal tax, or for the filing of any other type of federal tax or information return.
- The Families First Coronavirus Response Act (FFCRA)
- On March 18, 2020, the U.S. Senate passed the House Coronavirus Bill (H.R. 6201) in a 90-8 vote. The act has now been signed into law by the President.
- The FFCRA provides for (1) mandated paid emergency sick leave, and (2) paid family and medical leave for many American workers. Employers will receive a payroll tax credit intended to offset wages paid under this program. (Please contact your employment law attorney for more information and guidance)
- Financial Assistance for Small Businesses – SBA Loans
On March 6, 2020, President Trump signed the Coronavirus Preparedness and Response Supplemental Appropriations Act, which provides for emergency supplemental appropriations in the amount of $8.3 billion to address issues caused by the coronavirus outbreak. As part of this Act, the Small Business Administration (“SBA”) was authorized to provide disaster assistance loans on a state-by-state basis.
- The Tax Responsibility for Workers and Families Act
As the third component of the stimulus packages working its way through Congress, we will provide updates on our website when the bill is passed and signed into law, and when we receive guidance regarding implementation:
State of Arizona Developments – Summary
- The Arizona Department of Revenue (ADOR) has extended the deadline for filing and paying state income taxes from April 15, 2020 to July 15, 2020
- The announcement by ADOR includes individual, corporate and fiduciary tax returns.
- The new deadline means taxpayers filing state tax returns or submitting payments after the previous April 15, 2020 deadline but before July 15, 2020 will not be assessed late filing and late payment penalties and interest.
- Arizona tax credits- Many clients take advantage of the ability to reduce their state income tax liability by donating to various charities and schools sanctioned by the Dept of Revenue. The deadline for claiming these credits on your 2019 state tax returns remains April 15, 2020.
We appreciate your understanding and flexibility during these times of uncertainty. We expect that additional developments will occur and will keep you updated.