Tax News

Income Tax Return Filing and Estimated Payment Deadline Changes due to COVID-19

BFJ Financial Group recognizes that the COVID-19 pandemic has had an economic impact on all of our lives and we are committed to helping you work through these stressful times by providing you with timely information regarding economic topics. As you may know, many income tax return filing and payment deadlines have been extended due to the pandemic. These deadlines continue to change, but below is a summary of the new deadlines for Federal, Maryland and surrounding states at the time of this email.

  • Federal

July 15 – The filing deadline for income tax returns has been extended from April 15 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. This means estimated tax payments for tax year 2020 that are due on April 15, 2020 are not due until July 15, 2020. Second quarter estimates, at this time, are still due on June 15, 2020. Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020. You will automatically avoid interest and penalties on taxes paid by the new July 15 deadline.

  • Maryland

July 15 – The filing and payment deadline for income tax returns has been extended from April 15 to July 15, 2020 for individuals, corporations, pass through entities and fiduciaries. Interest and penalty for late payments have also been waived if made by July 15. Fiscal and calendar year filers with tax years ending January 1, 2020 through March 31, 2020 are also eligible for the July 15, 2020 filing and payment extension. The due date for March quarterly estimated payments, normally April 15, has been extended to July 15, 2020. Second quarter estimates, at this time, are still due on June 15, 2020. The extension also extends the statute of limitations for filing a claim for refund of income tax. However, the extension does not affect the deadline for filing of estate tax returns or the payment of estate tax.

  • District of Columbia

July 15 – The filing and payment deadline for income tax returns has been extended from April 15 to July 15, 2020 for individuals, fiduciaries, partnerships and franchises. DC has not issued any guidance on the due dates for 2020 estimated tax payments. At this time, you should assume that estimated tax payments are still due on their original due dates.

  • Pennsylvania                      

July 15 – The filing and payment deadline for personal income tax returns has been extended from April 15 to July 15, 2020. Penalties and interest are waived on 2019 personal income tax payments made on or before the new July 15, 2020 due date. Penalties and interest are also waived for 2020 first and second quarter estimated tax payments if made on or before the new due date, effectively extending the due date for those estimated payments to July 15.

  • Virginia

May 1/June 1All income tax filing deadlines remain the same, including the May 1, 2020 individual income tax filing due date. Any income tax payments due during the time period from April 1, 2020 to June 1, 2020 will now be due on June 1, 2020, including individual and corporate income taxes. Late payment penalties will not be charged if payments are made by June 1, 2020. However, interest will still accrue from May 1, 2020, so payments should be made by the original due date, if possible, to avoid interest. Virginia has an automatic 6 month extension of time to file (7 months for certain corporations), but payments must be made by June 1, 2020 in order to avoid penalties.

  • Other States – For more details on the above state filing deadlines or information regarding tax filing deadlines for other states, see the attached State Tax Filing Guidance chart.

As mentioned above, these deadlines continue to change. We will update you on changes as they occur. We are available to answer your questions regarding your specific filing and payment deadlines.

 

 

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