Pandemic Relief
One other bright spot in all of this is the potential for tax relief available at the state and federal, and potentially local level. While the situation remains fluid and new guidance is issued daily, as of March 21, 2020 we are aware of several new developments.The executive summary provided below was provided courtesy of Jody Holehouse, ARB Board member and a partner with Nasif, Hicks, Harris & Co., LLP but we remind you that this should not be construed as advice and we encourage you to consult your tax advisor for the actual applicability to your tax and filing situation.
In short, both income tax payments and filing are extended automatically to July 15; however, we understand that local property taxes are still due by April 10, 2020 at this time.
The source of this summary is Internal Revenue Notice 2020-18, 3/20/2020 superseding 2020-17, March 13, 2020, published 3/18/2020, pursuant to President Emergency Declaration, Stafford Disaster Relief Act, as well as Executive Order N-25-20, Newson 3/12/2020 and FTB Media Release dated 3/19/2020. Santa Barbara County information is provided based on phone discussions.
Internal Revenue Notice 2020-18 applies to any person with a US federal income and self-employment tax payment due 4/15/2020. “Person” includes individual, trust, estate, partnership, association, company, or corporation. In short, it postpones until 7/15/2020, the filing and payment without penalty and interest.
- Applies to 2019 tax year balances due at 4/15/2020
- Applies to 2020 tax year estimated tax payments due 4/15/2020
- Does NOT apply to 2018 tax filings. File fiscal year returns timely.
- 7Does NOT apply to employment, excise or other federal taxes
The notice has been superseded multiple times, and the most recent notice removed limits on tax deferment. Please refer to IRS guidance for the most recent up-to-date information.
Also, the California Franchise Tax Board and Employment Development Department
Source Executive Order N-25-20, Newson 3/12/2020 and FTB Media Release dated 3/19/2020 applies to all individuals, limited liability companies, corporations, S corporations, trusts and postpones until 7/15/2020 the filing and payment deadlines for the following for individuals and business entities without limitation:
- 2019 tax returns and payments
- 2020 first and second quarter estimated tax payments.
- 2020 LLC minimum tax 4/15/2020 and fees due 6/15/2020
- 2020 Non wages withholding payments
Lastly, according to the County of Santa Barbara the EDD may waive the one week waiting period for unemployment and disability insurance applications. We encourage you to refer to the County site for new developments. At this time:
- Property taxes due as customary 4/10/2020
- Business property tax form 571-L due as customary
We encourage you again to please consult your tax advisor for the actual applicability and tailored advice to your tax and filing situation. In addition, you can follow the IRS on social media as well! We look forward to providing you additional information tomorrow regarding SBA lending. Stay well, and thank you for reading!
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