UPDATED MARCH 27, 2020 (5:30 pm EDT) - Scroll down to view all resources.
Due to the COVID-19 (coronavirus) pandemic, the landscape of business is changing rapidly. Similarly, federal, state and local tax governments are quickly responding to the need for extensions of time to file or pay tax liabilities due during the pandemic.
measures our firm is taking to address safety.
March 24, 2020
Our physical office is closed. But the firm remains functional.
On March 19, 2020, Governor Wolf ordered all non-life sustaining businesses in Pennsylvania to close physical locations to slow the spread of COVID-19. Our staff continue to work remotely to support our clients and we are able to retrieve mail on a very limited basis.
If you have not yet sent in your information, please contact the partner managing your engagement and discuss solutions to your filing requirements.
With our offices closed, we have limited access to receive tax notices from the IRS or municipalities where we have Power of Attorney. If you receive such a notice, send them to us electronically. Should there be a delay in responding to a tax notice, we would expect failure to respond timely will have a reasonable exception in this unprecedented national crisis.
Drucker & Scaccetti will continue to assist you remotely. We are a phone call or an email away. Our thoughts are with each of you and all in the world impacted by COVID-19.
On March 20, 2020, the Treasury Department and the IRS issued Notice 2020-18, restating and expanding relief provided in Notice 2020-17. On March 24, 2020 the IRS released Filing and Payment Deadline FAQs relating to Notice 2020-18.
Notice 2020-18 provides guidance on how Affected Taxpayers may defer tax filings and tax payments due to the coronavirus (COVID-19).
Any person (individual, trust, estate, partnership, association, company or corporation per IRC §7701(a)(1)), with a Federal income tax payment or a Federal income tax return due April 15, 2020 is considered affected by the COVID-19 pandemic, and is an Affected Taxpayer.
For an Affected Taxpayer, the due date for filing Federal income tax returns and making Federal income and self-employment tax payments due April 15, 2020, is automatically postponed to July 15, 2020 without the need to file Forms 4868 or 7004 and without regard to the amount of the payment that is being postponed.
Other Important Notes (clarified by IRS FAQ released March 24, 2020) and Notice 2020-20:
Official IRS Guidance
State & Local Tax Resources
Below is a summary of the guidance available in the states and localities a lot of our clients file in:
California – On March 18, 2020 the Franchise Tax Board updated its previous guidance further extending relief being offered to CA taxpayers. The FTB is postponing, until July 15, the filing and payment deadlines for all individuals and business entities for:
Connecticut – On March 20, 2020, at the direction of Governor Lamont, the Connecticut Department of Revenue Services extended the filing and payment deadline for personal income tax returns 90 days, to July 15, 2020. The extension also applies to Connecticut estimated income tax payments for the first and second quarters of 2020.
Delaware – On March 23, 2020 the Delaware Division of Revenue issued Technical Information Memorandum 2020-1. The relief outlined in this TIM will be automatically provided to all affected taxpayers as follows:
Massachusetts – On March 27, 2020, Governor Baker announced “Massachusetts will move the state personal income tax filing and payment deadline to July 15, consistent with the federal government, in order to provide additional flexibility to filers during this crisis..."
New Jersey – As of March 25, 2020, no extension of time to file corporate or individual income tax returns has been granted. Legislators in the New Jersey Assembly passed A. 3841 which would extend corporate and individual filing and payment deadlines to coincide with the federal extensions granted to June 30, 2020; however, this action has not yet become law as it awaits the Governor’s signature.
New York & New York City - As of March 25, 2020, no extension of time to file corporate or individual income tax returns has been granted. On its COVID-19 page, the Department of Taxation and Finance currently states: “We also understand many of you have concerns about your income tax or other tax returns. We're listening and taking steps to help.”
Pennsylvania - Late on March 25, 2020 the PA Legislature amended House Bill 1232. This Bill, among other things, temporarily authorizes the Department of Revenue to extend filing and payment deadlines to coincide with the extended federal deadline of July 15, 2020, as follows:
The Pennsylvania Department of Revenue announced it has extended 2019 individual income tax filing and payment deadlines to July 15, 2020. Additionally, the first and second quarter 2020 individual estimated tax deadlines were also extended to July 15, 2020.
Philadelphia, PA - On March 23, 2020, The Philadelphia Department of Revenue announced it extended the 2019 tax year filing and payment deadlines to July 15, 2020 for the Business Income and Receipts Tax (BIRT) and Net Profits Tax (NPT). Philadelphia HAS NOT extended filing or payment due dates for Use & Occupancy (U&O), School Income Tax (SIT) or Wage and Earnings Tax. The Department of Revenue has indicated they will publish guidance about the taxes not currently extended as soon as possible. Regardless of extensions granted, the City encourages all taxpayers who can file and pay on time to do so in order to ensure the continuity of critical city and School District services.
Philadelphia non-resident employees based in Philadelphia are not subject to Philadelphia Wage Tax during the time they have been ordered to work outside of Philadelphia. Read more here.
Various PA Localities – Late on March 25, 2020 the PA Legislature amended House Bill 1232. The legislation authorized the Department of Community and Economic Development (DCED) to coordinate with the governing bodies and local agencies of political subdivisions to extend filing and payment deadlines for the local Earned Income Tax (EIT). Both Berkheimer and Keystone Collections Group, the two major tax administrators and collectors for local jurisdictions in PA with earned income tax, note on their web sites that 2019 local earned income tax returns and first quarter estimated tax payments for individual normally due April 15, 2020 are now due July 15, 2020, in alignment with the relief granted by Pennsylvania.
Tax Warrior Blogs & Alerts
March 27, 2020 - President Signs CARES Act
March 25, 2020 - Update on Federal and State Tax Deadlines
March 19, 2020 - Families First Coronavirus Response Act Enacted
March 18, 2020 - IRS Provide Guidance on Coronavirus Relief Package
March 26, 2020 - Calculate how much you’ll get from the $1,200 (or more) coronavirus checks (The Washington Post)
March 24, 2020 (Updated) - Here's What We Know About Closings, Extensions, Other Tax Relief Due to Coronavirus Concerns (Kelly Erb, Forbes)
March 23, 2020 - States Worry Tax Extensions Will Have Dire Fiscal Results (Maria Koklanaris, Law360)
March 19, 2020 - IRS to Reduce Staff by 50% at Return Processing Centers Amid Virus (Bloomberg Tax)
March 17, 2020 - Federal Treasury Secretary Says Tax Payments Deferred until July 15, 2020 (AccountingToday)
March 16, 2020 - Amid COVID-19, Countries Up Tax Relief To Keep Economies Afloat (Alex M. Parker, Law360)
Other Important Information
Applications Now Open! Philadelphia COVID-19 Small Business Relief Fund - Providing some small businesses impacted by the COVID-19 pandemic with immediate relief through a mix of grants and loans.