Families First Coronavirus Response Act Summary of Tax Credits and Filing and payment extensions

Mar 24, 2020

The Federal government continues to grapple with how to assist businesses and individuals with the growing impact of the COVID-19 outbreak. On Wednesday, March 18, 2020 the President signed into law H.R. 6201, “Families First Coronavirus Response Act,” which provides for supplemental appropriations related to the COVID-19 public health emergency, as well as waivers and modifications of Federal nutrition programs, employment-related protection and benefits, health programs and insurance coverage requirements, and related employer tax credits and exemptions.

To review a summary of the Family and medical leave and emergency paid sick time requirements for the employers impacted by the new law as well as the Employer and self-employed tax credits that may be available click here. As the new law is interpreted and more guidance becomes available we will provide updates.

On March 20, 2020 Treasury Secretary Steven Mnuchin announced that the 2019 federal tax return filing deadline for individuals and businesses will be extended from April 15 to July 15. 

Earlier last week, the US Treasury Department granted federal payment relief, which includes the following highlights:

  • Individuals: The income tax payment deadline has been extended until July 15 for up to $1 million of 2019 tax due. This includes self-employed individuals, trusts, estates, and all entities other than C-Corps. The IRS will automatically provide this relief; no additional forms need to be filed.
  • Corporations: For C Corporations, the guidance also allows a similar deferment of up to $10 million of federal income tax payments that would be due on April 15, 2020, until July 15, 2020, without penalties or interest. If you file your tax return or request an extension by April 15, you will automatically avoid interest and penalties on the taxes paid by July 15.

This guidance was updated in Notice 2020-18 to state that there is NO LIMITATION on the amount of the payment that may be postponed and that the filing deadline will automatically be postponed.

The California Franchise Tax Board, in accord with the federal announcement, also extended the state tax filing and payment deadlines to until July 15 for all individuals and business entities for the following:

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

An additional five states have issued guidance at this point including Alabama, Connecticut, Maryland, Minnesota, and Oregon.

We will continue to monitor the situation and update you on any legislation or additional guidance in order to meet any filing requirements. We are continuing to work remotely and have full capacity to complete any and all necessary work.

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