Tax Law Client Alert: IRS and PA Extend Tax Deadlines (UPDATED 3.23.2020)

This morning, the U.S. Secretary of Treasury announced that taxpayers with tax returns due on April 15, 2020, will now have until July 15, 2020, to file their returns without penalty.

Previously, on March 13, 2020, the IRS issued Notice 2020-17, which announced certain relief for the payment of Federal Income Tax payments. For certain taxpayers, who are required to make a payment of income tax due on April 15, 2020, may now make the payment by July 15, 2020, without incurring interest or penalties that would otherwise be due. Interest and penalties will be assessed for unpaid balances beginning July 16, 2020. These provisions generally apply to individuals, C Corporations, trusts, and estates. The provisions, at this time, apply only to income taxes. Employment taxes, estate, and gift taxes are not affected.

Aside from these announcements, many individual taxpayers receive refunds upon the filing of their individual tax returns. Being that the IRS has cut its staffing at return processing centers, there may be delays in the issuance of refunds; therefore, such persons should file their returns as soon as possible to ensure that their refunds are received in a timely manner.

PA Department of Revenue

As an update to our recent Tax Advisory issued on Friday, March 20, 2020, please note that Pennsylvania Governor Tom Wolf has extended the income tax filing deadline to July 15 for 2019 personal income tax returns; and for 2020 estimated tax payments for the first and second quarters.

 

Announcements have been made concerning relief for filing deadlines occurring after March 12, 2020, for Pennsylvania inheritance tax returns and for the filing of appeals with the Board of Appeals, which has closed its office in response to the crisis.

Local Taxes

Allegheny County Treasurer has announced the extension of the early discount due date for County Real Estate Taxes from March 31, 2020, to April 30, 2020. The Treasurer encourages property owners to pay their tax electronically through its website.

There are developments occurring daily in this uncertain time. We will keep you advised as circumstances change. Should you have any questions on this topic, please contact Kevin F. Israel at kfi@muslaw.com.

Meyer, Unkovic & Scott COVID-19 Resource Center

For updates on this and other legal matters associated with COVID-19, please visit our Coronavirus Legal Resource Center at: https://www.muslaw.com/coronavirus-covid-19-resource-page/

This material is for informational purposes only. It is not and should not be solely relied on as legal advice in dealing with any specific situation.

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