Corona Virus Business Resources
In these unprecedented times, staying informed on daily changes while still trying to operate a business is overwhelming. Visit the Corona Virus Resources page for regular updates including Families First Coronavirus Response Act Q&A from the DOL, SBA loan highlights, and more.
IRS Postpones Filing & Payment Date to July 15
Early last week the US government announced that certain individuals and corporations may delay their April 15th tax payments for 90-days. After much debate, it was announced that the 2019 federal tax filing and tax payment deadlines would be moved to July 15th, 2020. Now the federal filing deadline coincides with the federal tax payment deadline giving taxpayers additional time to file returns and make payments.
The relief provided is available solely with respect to 2019 federal income tax payments and 2020 federal estimated tax payments which would have been ordinarily due on April 15th. Furthermore some states are allowing additional time to file returns while other states are still contemplating the available options. Though Massachusetts has not officially stated an extension to July 15th, the Commonwealth has stated that it is prepared to follow the IRS in offering similar relief for taxpayers with Massachusetts tax filing obligations.
Additionally, Massachusetts has suspended the sales and use tax filing and payment schedule for some vendors, whose cumulative sales and use tax liability in the 12-month period ending February 29, 2020, is less than $150,000. Specifically, returns and payments due during the period beginning March 20, 2020, and ending May 31, 2020, inclusive, shall be suspended and all such returns and payments shall be due on June 20, 2020. This suspension does not apply to marijuana retailers, marketplace facilitators, or vendors selling motor vehicles.
S&G continues to approach the deadline as planned but realistically anticipate delays. We are closely monitoring the ever changing tax and business landscape, while taking several precautionary steps to ensure the health and safety of our clients and team members.
Massachusetts Tax Relief
The Massachusetts Department of Revenue (“DOR”) originally indicated it was prepared to follow the IRS in offering similar relief for taxpayers with Massachusetts tax filing obligations. On March 20th, when the IRS postponed the 2019 tax payment and filing deadline to July 15th 2020, it was assumed that Massachusetts would release similar guidance.
On March 27th, such relief was realized as Massachusetts announced an automatic extension of the 2019 state individual income tax filing and payment deadline from April 15 to July 15. The Massachusetts deadline which now aligns with the delayed federal government deadline. This income tax relief is automatic and taxpayers do not need to file any additional forms to qualify.
The Massachusetts Department of Revenue advises that detailed guidance is to follow. Of interest is whether the corporation or fiduciary tax return deadlines will be delayed, or if there will be any consideration for 2020 Q1 estimates.
Please stay connected as S&G will provide updates when official guidance is announced by the Massachusetts Department of Revenue.