COVID-19 Tax Relief
The U.S. Treasury Department and Internal Revenue Service (IRS) have provided relief for individual and business taxpayers affected by the COVID-19 crisis. See below for the latest developments impacting Federal taxes.
On April 9, 2020, the U.S. Department of Treasury and the IRS announced that additional tax deadlines for individuals and businesses have been extended due to the COVID-19 pandemic. Last month, the IRS announced that taxpayers generally have until July 15, 2020, to file and pay federal income taxes that are due on April 15, without being subject to interest and late-filing or late-payment penalties. [read more]
On March 24, 2020, the IRS issued guidance in the form of a Q&A to the most frequently asked questions about this change in filing deadlines due to the coronavirus pandemic. Your Tronconi Segarra & Associates tax advisors are all working remotely and safely to continue serving you through this unprecedented time. If you have any questions about this IRS guidance, or any other questions regarding your tax situation, please email or call your Tronconi Segarra & Associates tax advisor, or contact our COVID-19 Response Team at .
The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020.
Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax. See IR-2020-58 for additional information.
U.S. Treasury Secretary Steven Mnuchin announced during a March 17 news conference that President Trump has authorized him to make the following announcement today: “If you owe a payment to the IRS, you can defer up to $1 million as an individual — and the reason why we are doing $1 million is because that covers lots of pass-throughs and small businesses — and $10 million to corporations, interest-free and penalty-free for 90 days. [read more]
Note: these dollar amounts have since been rescinded. There are no longer dollar amount caps or limits for deferred payments.
State and Local Tax
The Tax Department extended the April 15, 2020, due date to July 15, 2020, for New York State personal income tax and corporation tax returns originally due on April 15, 2020, and for all related tax payments, including estimated tax payments, that were due on April 15, 2020. See N-20-2, Announcement Regarding Relief from Certain Filing and Payment Deadlines due to the Novel Coronavirus, COVID-19.
The due date for estimated tax payments due on June 15, 2020, for personal income, fiduciary and corporate taxpayers remains in place.
Accordingly, for purposes of 2020 estimated tax payments:
- Individuals and fiduciaries should consider the estimated tax payment due on June 15, 2020, as the 1st installment payment towards the 2020 tax year.
- Individuals and fiduciaries should consider the estimated tax payment due on July 15, 2020, as the 2nd installment payment of the 2020 tax year.
Penalties with respect to the underpayment of estimated tax for individuals and fiduciaries will be calculated based on these revised dates. [N-20-8, Announcement Regarding June Estimated Tax Payments]
The Tax Commissioner’s authority to abate interest, in addition to late filing and payment penalties, for taxpayers who were required to file returns and remit sales and use taxes by March 20, 2020, for the sales tax quarterly period that ended February 29, 2020, was scheduled to expire on May 19, 2020. Governor Cuomo’s Executive Order 202.32 has temporarily extended this authority. As a result, those who were unable to timely file and pay quarterly and annual sales tax returns that were due on March 20, 2020, as a result of COVID-19, must now file and pay any amount due by June 22, 2020, in order for the relief outlined in N-20-1, Announcement Regarding the Abatement of Penalties and Interest for Sales and Use Tax due to the Novel Coronavirus, COVID-19, to apply.
For more details, see N-20-6, Extension for the Abatement of Penalties and Interest for Sales and Use Tax due to the Novel Coronavirus, COVID-19
Pursuant to the authority of Governor Cuomo’s Executive Order 202.31, the Commissioner is extending the period during which the Department will accept digital signatures until July 15, 2020. At that time, the Commissioner will determine whether there is a continuing need to allow for the acceptance of digital signatures due to the COVID-19 State emergency. As a result, the provisions outlined in N-20-3, Temporary Authorization to Use Digital Signatures on Certain Documents Due to the Novel Coronavirus, COVID-19, will continue to apply until July 15, 2020.
For details, see N-20-5, Temporary Authorization to Use Digital Signatures on Certain Documents Due to the Novel Coronavirus, COVID-19, Extended
Governor Cuomo has issued an executive order in response to the Coronavirus COVID-19 situation temporarily authorizing the Tax Department to accept digital signatures in place of handwritten signatures on documents related to the determination or collection of tax liability. This notice defines the requirements for Tax’s acceptance of digital signatures and sets forth the types of documents to which digital signatures may be applied.
For details, see Notice N-20-3, Temporary Authorization to Use Digital Signatures on Certain Documents Due to the Novel Coronavirus, COVID-19.
On March 7, 2020, Governor Andrew M. Cuomo declared a State Disaster Emergency for all of New York State due to the impact of the novel coronavirus, COVID-19 outbreak. The Governor has subsequently issued Executive Order # 202.12 authorizing the Commissioner to provide relief from certain tax filing and payment deadlines. Accordingly, the Commissioner has extended the April 15, 2020, due date to July 15, 2020, for New York State personal income tax and corporation tax returns originally due on April 15, 2020.
Except as specified below, this extension applies to returns for individuals, fiduciaries (estate and trusts), and corporations taxable under Tax Law Articles 9, 9-A and 33. In addition, the Commissioner is allowing taxpayers to defer all related tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed.
Taxpayers do not need to file any additional forms or call the Tax Department to request or apply for this relief. The returns due on April 15, 2020, will automatically be granted the filing and payment deadline extension and relief from penalties and interest. Taxpayers who are due a refund are urged to file as soon as possible.
For more details, see N-20-2, Announcement Regarding Relief from Certain Filing and Payment Deadlines due to the Novel Coronavirus, COVID-19
COVID-19 Response Team
Please contact a member of our coronavirus (COVID-19) response team at if you have any questions about Federal, state and local relief measures or require assistance assessing how these measures can benefit your business. Our nearly 100-member team of CPAs and accountants is ready to help your business with its financial, accounting and tax needs during these extraordinary times.
Serving You During the Coronavirus Crisis
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