Tax Updates

Dear valued clients,

We will continue to monitor tax and financial updates as they evolve. As we await the federal stimulus package, it is essential we provide updates known at this time.

The Treasury Department and the Internal Revenue Service are providing special tax filing and payment relief to individuals and businesses in response to the COVID-19 Outbreak.
This filing and payment relief includes:

The 2019 income tax filing and payment deadlines for all taxpayers who file and pay their Federal income taxes on April 15, 2020, are automatically extended until July 15, 2020. This relief applies to all individual returns, trusts, and corporations. This relief is automatic, taxpayers do not need to file any additional forms or call the IRS to qualify.

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 the taxes paid by July 15.
Estimated Payments:

The deadline for taxpayers who make quarterly estimated personal income tax payments is also extended to July 15, 2020. That means estimated payments for the first and second quarters of 2020 will be due by July 15, 2020.

Estimated tax due dates for individuals are typically April 15, June 15, Sept. 15 and Jan. 15, or the first following business day if any deadline falls on a weekend or holiday.

Most local earned income tax jurisdictions to date are following suit
State tax returns:

The Pennsylvania Department of Revenue also announced the deadline for taxpayers to file their 2019 Pennsylvania personal income tax returns is extended to July 15, 2020. This means taxpayers will have an additional 90 days to file from the original deadline of April 15.

The Department of Revenue will also waive penalties and interest on 2019 personal income tax payments through the new deadline of July 15, 2020. This extension applies to both final 2019 tax returns and payments, and estimated payments for the first and second quarters of 2020.

More information pertaining to other states is available at https://www.taxadmin.org/state-tax-agencies.
Tax Filing Deadline Extended as Non-Life-Sustaining Businesses Close

The Department of Revenue (DOR) is waiving penalties for businesses that were required to make accelerated sales tax (AST) prepayments by the deadline of Friday, March 20. Additionally, the DOR is waiving the AST prepayment requirement for April sales tax payments, and is asking businesses to simply remit the sales tax that they have collected in March.
Property Tax/Rent Rebate Program Application Deadline Extended

In response to the COVID-19 outbreak, the deadline for older adults and Pennsylvania residents with disabilities to apply for rebates on rent and property taxes paid in 2019 has been extended from June 30 to Dec. 31, 2020, the Department of Revenue announced on March 19.

Under Pennsylvania law, the initial deadline for the filing of applications for the Property Tax/Rent Rebate Program is June 30. The Department of Revenue typically evaluates the program as the statutory June 30 application deadline approaches to determine if funds are available to extend the deadline. Due to the recent closure of commonwealth offices and to give applicants more time, the deadline is being extended earlier than usual this year.

Distribution of rebates will begin no earlier than July 1, as required by law. Rebates are distributed as claims are received and processed.
State Funding Approval to Help Small Businesses

The Commonwealth Financing Authority (CFA) took the first step in providing relief to Pennsylvania small businesses affected by COVID-19 by authorizing the transfer of $40 million to the Pennsylvania Industrial Development Authority (PIDA).

The transferred funds will ultimately be combined with existing funds in PIDA’s Small Business First Program and will be used to provide zero-interest loans to small businesses. Over $60 million for loans will be available to businesses with 100 or fewer full-time employees.

Loans of up to $100,000 will be available to small businesses to use as working capital. Interest rates are being dropped from about 3% to 0%. Detailed guidelines for the program are still being developed at this time. In addition to a 0% interest rate, there will be no application fee and the terms will include no payments and no interest during the first year of the loan.

The Commonwealth Financing Authority (CFA) was established as an independent agency to administer Pennsylvania’s economic stimulus packages. The CFA holds fiduciary responsibility over the funding of programs and investments in Pennsylvania’s economic growth. More information regarding programs administered by the CFA can be found on the https://dced.pa.gov/funding-programs/

Personalized guidance for your business and you.

Let's Talk

Share

Tax Updates

March 24, 2020