***Latest Update as of April 1, 2020 ***
On April 1, 2020, New Jersey Governor Phil Murphy has extended the state income tax filing date and the corporation business tax filing deadline from April 15th to July 15th to coincide with the federal deadline. Murphy also decided to extend the state fiscal year to September 30th to allow the Administration to focus on fighting COVID-19 and give it some time to reevaluate it’s budget for the coming year.
***Update as of March 29, 2020 ***
New York Governor Cuomo has issued an executive order authorizing the Tax Commissioner to provide relief from certain tax filing and payment deadlines.
Accordingly, the Commissioner has extended the April 15, 2020, due date to July 15, 2020, for New York State personal income tax and corporation tax returns originally due on April 15, 2020. In addition, the Commissioner is allowing taxpayers to defer all related tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed.
With the recent outbreak and rapid spread of the Corona Virus (COVID-19), both employees and employers are wondering how they are going to make ends meet while complying with the quarantine mandates that have shut down all “non-essential businesses” in New Jersey as of 9 p.m. on Saturday March 21, 2020. Typically, taxpayers would be getting ready to file by April 15th. However, there is great concern about how taxpayers will be able to afford to file their tax returns on time and pay any balances due because of the debilitating imprint of the COVID-19 Pandemic.
In light of these mounting concerns, the United States Dept. of Treasury through the Internal Revenue Service has postponed the 2019 federal tax filing date from April 15 to July 15, 2020. Taxpayers can defer their federal income tax payment until July 15 without facing any penalties or interest regardless of how much they may owe. This automatic extension applies to all taxpayers including but not limited to individuals, trusts, estates, corporations, non-corporations, and the self- employed. There is no need to file any form to take advantage of this automatic extension. However, if a taxpayer requires additional time beyond July 15th to prepare or to pay their 2019 federal tax liability, they must file a Form 4868 (Individual) or a Form 7004 (business) extension of time.
In the event that a taxpayer is owed a refund on 2019 their federal tax return, it is recommended that they file immediately, electronically, and request direct deposit in order to get access to their refund money as soon as possible. As of now, the IRS is still providing refunds within 21 days of filing. The IRS is also providing updates on how COVID-19 is impacting federal tax on a special page on their website. Click here to access it.
Also, the Treasury Department, IRS, and the Division of Labor have announced a plan to help businesses provide COVID-19 related paid leave to their employees as well as tax credits for small business to help cover COVID-19 related costs. This plan is under the Families First Corona Virus Response Act signed by President Trump on March 18, 2020. This plan impacts businesses with fewer than 500 employees by providing two new payroll tax credits that immediately and fully reimburse the business for the cost of providing COVID-19 related leave for their employees. The plan includes paid sick leave, an expansion of paid child care to include parents with children who have had their school district closed or have lost their child care services due to COVID-19 mandated shut downs. The complete coverage plan reimburses employees for 100% of the COVID-19 related paid leave costs. This credit includes health insurance costs and does not subject the employer to a payroll tax liability. An identical credit is available to self-employed individuals. For more specifics on this plan and how it may be implemented, click here.
As for New Jersey state tax return filers, a bill is up for consideration in the New Jersey Senate (A.B. 3841) that would extend the state filing date to June 30th, 2020. It has not yet been passed in the legislature and is not year official. We will update this bulletin as soon as any changes are signed into law.
In New York State, the following message was posted on March 16, 2020 on the NYS Department of Taxation and Finance Corona Virus Response website: “At this time, the New York State Tax Department has not extended the deadline to file personal income tax or other tax returns. We will update this page if new information becomes available.” Mazur & Associates, CPAs shall update this bulletin if and when there are changes to the April 15, 2020 New York State individual and corporation tax filing deadline.
Here at Mazur and Associates are doing our part to fight COVID-19 and protect those in our country and community as well as prepare and review 2019 individual and business tax returns. Our office is operating with staff on premises daily. However, Governor Murphy’s order and common-sense dictates that until further notice we cannot meet with any client at our office. As always, feel free to telephone our office or email us with any questions you may have. And revisit our website often for updates on any changes to the 2019 or 2020 tax deadlines or available tax credits.
In closing, we wish you and your family a safe and healthy quarantine period and a trust that our citizens can return to their schools, workplaces and social activities in the very near future!