Coronavirus update 3/20/2020

Note: for more information on this topic, please visit our web page at: https://oniskoscholz.com/covid-19-updates/

While everyone is busy wondering how to store another 1000 rolls of TP in their garage, many are unaware of a sidebar problem – tax filings due April 15 can be affected if you are waiting on data from sources that have shut down or are working with less staff than normal. Many people affected by the pandemic will be hard-pressed to find time to complete their tax filings, and many will be hard-pressed to pay any taxes due given the economic convulsions of the past few weeks. Besides, who can locate 1099 forms and tax receipts buried under all that toilet paper and cases of bottled water? It’s a problem…

Seriously, Federal and state tax authorities are trying to provide help. Last Thursday the State of California issued a notice delaying the filing date and deferring the payment date for 2019 taxes to June 15, 2020.

Earlier this week the Treasury Department announced that 2019 Federal tax payments due April 15 would be deferred until July 15, 2020. However, they did not defer the filing date of April 15.

I don’t believe we have heard the last on this topic. The AICPA jumped on the IRS like a duck on a Junebug and immediately called for them to extend the filing date to July 15 as well. California tax advocacy groups are calling for the Franchise Tax Board to conform to the July date, same as Federal.

It’s a very fluid situation that we see changing almost daily until things sort out. Please visit our web page noted above for the most recent developments.

As far as our firm’s situation goes, the COVID-19 virus has not yet affected any of our team or their families. As a precaution, we have shortened tax season office hours back to normal, and are discouraging face to face meetings with clients if at all possible. Should we be forced to work remotely every person on our team has the ability to do so, and some already are. We are taking all the necessary precautions to avoid spreading any virus around.

Stay healthy, and we will keep you updated.

Read more tax articles from Paul’s tax blog