COVID-19 Tax Resource Center

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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.

 
As a firm focused on taxation, Drucker & Scaccetti created this COVID-19 Tax Resource Center to keep our clients, staff and business partners informed about:
  • changes to tax filing and payment deadlines at the federal, state and local levels due to COVID-19; and
  • measures our firm is taking to address safety.

We encourage you to bookmark this page and reference it frequently for updates. 
 
If you have questions or concerns about your taxes and COVID-19, please email us at responseteam@taxwarriors.com.
 

Tax Season Continues

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.


How Clients Can Help

    • Expedite the delivery of your outstanding tax information. If you are missing a few items, please expedite the electronic delivery of the information you have now.

    • To prepare for possible limited access to mail in the coming weeks, we encourage all clients to send their information electronically. If you have an existing shared secure folder with us (Sharefile), please utilize this folder to upload your tax documents.  If you need a link to upload documents, you can use the blue button below and your engagement team will be notified of your upload.  To reduce the threat of identity theft, please do not send sensitive tax documents without passwords or without encryption of a secure file share software.
Upload and Securely Send Documents Here
    • To assist our internal accounting team, we request clients pay for D&S invoices using our online payment options.

 
Federal Resources
 

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:

  • Second quarter 2020 estimated income tax payments are still due on June 15, 2020.
  • If you do not anticipate filing a return due on April 15, 2020 by July 15, 2020, you will need to file Form 4868 or 7004 by July 15, 2020. All anticipated tax payments should be made by July 15, 2020 to avoid interest and penalties after that date.
  • Gift and Generation-Skipping Transfer Tax Returns (Form 709) and related payments have been extended to July 15, 2020.
  • The time available to fund eligible 2019 IRA, HSA and Archer MSA contributions has been extended from April 15, 2020 to July 15, 2020.
  • If your Federal income tax return for your fiscal year ended during 2019 is due on April 15, 2020, whether that is the original due date or the due date on extension, your due date is postponed to July 15, 2020. 
  • Any taxpayers who have filing or payment due dates other than April 15 have not been granted relief at this time.

  • No extension is provided for the payment or deposit of any other type of Federal tax, or for the filing of any Federal information return.
  • Any 2016 refund claims due on April 15, 2020 are NOT extended.
  •  Many states are simultaneously providing, or have already provided, their own relief.   See the State & Local Tax Resource Section below for more information.
If you have any concerns about your tax filings as relates to this Notice, or anything relating to the coronavirus pandemic, e-mail our response team here. 

 

Official IRS Guidance

  • IRS Coronavirus Tax Relief Page

  • Notice 2020-21 - On March 27, 2020 the IRS issued a notice provide guidance on the effective date for employment tax credits under the Families First Coronavirus Response Act.

  • Notice 2020-20 - On March 27, 2020 the IRS updated Notice 2020-18 to provide additional guidance regarding extended deadlines for non income tax filings.  Specifically, this notice extends the due date for 2019 Gift and Generation-Skipping Transfer Tax Returns (Form 709) and related payments until July 15, 2020.

  • IR-2020-59 - On March 25, 2020 the IRS unveiled its new People First Initiative.  This initiative temporarily adjusts or suspends key compliance programs in reaction to the COVID-19 pandemic.

  • IRS Filing and Payment Deadline FAQ - On March 24, 2020 the IRS created a web page with questions and answers relating to the extended federal filing and payment deadlines.  While there are many questions that remain unanswered, this page is a good start to what is quickly evolving guidance.

  • IR-2020-57On March 20, 2020 Treasury, IRS and Labor announced their plan to implement the Coronavirus related paid leave for workers and tax credits for small and midsize businesses to recover the cost of providing Coronavirus related leave.
  • Notice 2020-18 - On March 20, 2020 the IRS issued a REVISED Notice entitled "Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic," providing details about the relief being granted for tax filings and payments due April 15, 2020.  This notice supersedes Notice 2020-17 which was issued on March 18, 2020.
  • Notice 2020-15 -  On March 11, 2020 the IRS advised that high-deductible health plans (HDHPs) can pay for 2019 Novel Coronavirus (COVID-19)-related testing and treatment, without jeopardizing their status. This also means that an individual with an HDHP that covers these costs may continue to contribute to a health savings account (HSA).


State & Local Tax Resources

Bloomberg Tax - State Tax Coronavirus Roadmap

Chart - AICPA Federal and State Tax Filing Guidance for Coronavirus Pandemic

Links to State and Selected Local Taxing Authorities web-pages 

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:

  • 2019 tax returns
  • 2019 tax return payments
  • 2020 1st and 2nd quarter estimated payments
  • 2020 LLC taxes and fees
  • 2020 Non-wage withholding payments

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 2020-1The relief outlined in this TIM will be automatically provided to all affected taxpayers as follows:

  • Corporate tentative returns that would be due on April 15, 2020 pursuant to 30 Del. C. § 1904(a) will now be due on July 15, 2020.
  • Personal income tax returns that would be due on April 30, 2020 will now be due on July 15, 2020. If a taxpayer needs additional time beyond the extended due date, taxpayers may request an extension requesting additional time to file through the Division of Revenue’s online system. This will provide an automatic extension of time to file to October 15, 2020. This requires the submission of Form 1027, available on the Division of Revenue website
  • Estimated personal income tax payments that are due on April 30, 2020 are extended to July 15, 2020. Please note that the second quarter payments remain due on June 15, 2020.
  • Fiduciary income tax returns that are due on April 30, 2020 will now be due on July 15, 2020. If a taxpayer needs additional time beyond the extended due date, the Division of Revenue reminds all taxpayers that they may file an extension requesting additional time to file. This will provide an automatic extension of time to file to October 15, 2020. This requires the submission of Form 400-EX, available on the Division of Revenue website.

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:

  • Extends the deadline for declarations of estimated personal Income Tax (PIT)
  • Extends the deadline for payments of estimated PIT; and
  • Extends the deadline for the filing of informational returns related to the PA s-corporations, partnerships, estates and trusts.

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 20, 2020 - IRS Provides Expanded Relief for All Taxpayers with April 15th Deadlines

March 19, 2020 - Families First Coronavirus Response Act Enacted

March 18, 2020 - IRS Provide Guidance on Coronavirus Relief Package

March 11, 2020 - Coronavirus Relief Package Likely to Extend April 15th Tax Return Filing and Payment Deadline


Third-Party Articles

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.

  • March 20, 2020 -  IRS announces it has temporarily closed all Taxpayer Assistance Centers and will discontinue face-to-face service throughout the country until further notice.

  • March 11, 2020 - The Tax Court announced that it is canceling 15 trial sessions that had been planned for March. On March 13, 2020, it announced cancellations for April. The Court said that, in keeping with Court practice, it is expected that parties will continue to work together to exchange information and address pending issues. Unresolved cases will be scheduled for trial at a later date.
    The trial sessions canceled include:

    March 16, 2020: Hartford, CT; Philadelphia, PA; and San Francisco, CA; March 17, 2020: Provo, UT; March 23, 2020: Boston, MA; Los Angeles, CA; Milwaukee, WI; Pittsburgh, PA; and San Antonio, TX; March 30, 2020: Chicago, IL; Dallas, TX; Detroit, MI; Los Angeles, CA; New York, NY; and Philadelphia, PA; April 6, 2020: Little Rock, AK; Niagara Falls, NY; San Diego, CA; Seattle, WA; April 8, 2020: Chicago, IL; April 13, 2020: Washington, D.C.; April 14, 2020: Philadelphia, PA; April 20, 2020: Atlanta, GA; Bismark, ND; Chicago, IL; Clarksburg, WV; Denver, CO; Houston, TX; Omaha, NE; San Francisco, CA; April 22, 2020: Aberdeen, SD; April 27, 2020: Chicago, IL; Los Angeles, CA; New Orleans, LA; San Diego, CA; Syracuse, NY; April 30, 2020: Albany, NY; Shreveport, LA

 


Have more questions about COVID-19 and how it may affect your tax planning?  Click here.