The Internal Revenue Service recently released IRS Notice 2020-17 outlining tax payment relief for taxpayers due to COVID-19 (Coronavirus) pandemic. In the media there has been uncertainty as to when are my taxes due and when do I have to pay. IRS Notice 2020-17 sheds light on it.
IRS Notice 2020-17 does not grant an automatic extension to taxpayers whose tax returns are due April 15, 2020 (Fiduciaries, Individuals, and C-Corporations) due to the Coronavirus. It does grant a payment extension of income and self-employment taxes that would have been due April 15, 2020. This includes all C-Corporation income tax payments, individual income tax payments, individual self-employment payments, and fiduciary income tax payments. It covers not only payment of 2019 tax liabilities, but 2020 first quarter estimates as well. The deferral of taxpayment for non-corporate taxpayers is up to $1,000,000. For corporate taxpayers, it is $10,000,000.
This does not mean you cannot get an extension to file your taxes for this year. The option is still available to file a Form 4868 for individuals or a Form 7004 for C-Corporations, Trusts, and Estates. With either form, the taxpayer will be granted a six-month extension to file their taxes.
As an Oregon taxpayer, the rules are similar to the IRS’ rules. Per the Oregon Department of Revenue, Oregon is tied to the Internal Revenue Service filing and payment due dates for personal income taxes. The Oregon Department of Revenue specifically states estimated tax payment due dates have not been extended. Per Oregon law though, the Oregon Department of Revenue can grant an abatement of penalties and interest if the department determines that by reason of casualty, disaster, or other unusual circumstances.
To summarize the latest, personal, fiduciary, and C-Corporation returns are still due April 15, 2020. If you wish to have an extension to file, Form 4868 or Form 7004 must be filed. There is an automatic extension granted of payment to taxpayers from April 15, 2020 to July 15, 2020 free of interest and penalties.
If you need help navigating through the ever-changing tax landscape, we are here to help!
Fitzpatrick Johnson & Associates CPAs is a full-service accounting firm with a team of Certified Public Accountants providing tax, financial statement, and bookkeeping services. We are based in McMinnville, Oregon in the heart of Oregon’s wine country, the Willamette Valley.