IRS and Franchise Tax Board Provide COVID-19 Tax Relief
On March 13, 2020, the Franchise Tax Board (FTB) announced special tax relief for California taxpayers affected by the COVID-19 pandemic. Affected taxpayers are granted an extension to file 2019 California tax returns and make certain payments until June 15, 2020. The FTB will also waive interest and any late filing or late payment penalties that would otherwise apply. The June 15, 2020, deadline may be pushed back even further if the IRS grants a longer period of relief. Taxpayers do not need to be directly impacted to be eligible for relief (for example, some taxpayers may not be able to get their tax returns prepared due to the unavailability of their paid tax preparers).
Yesterday (March 17, 2020), Treasury Secretary Steven Mnunchin announced that although the filing deadline will not be extended, individual taxpayers will be granted an additional 90 days (through July 15, 2020) to pay taxes up to $1 million without interest or penalties being charged.
IRS and FTB COVID-19 Tax Relief remains fluid. If you have been adversely affected by COVID-19 and you expect it to affect your ability to timely file or pay taxes, or have other tax-related COVID-19 questions, please contact the tax attorneys at SCMV for guidance and support.
Update: On March 20, 2020, Treasury Secretary Mnuchin announced that the filing deadline will also be extended through July 15, 2020, and the extended filing deadline and corresponding payment deadline will apply to all taxpayers (not just individual taxpayers).