The IRS and Treasury have announced that they do not intend to extend the July 15, 2020 filing deadline further. The July 15 due date extended the original due dates for almost all tax forms and payments due between April 15 and July 15, 2020. All payments for tax year 2019 and the first and second quarter estimated tax payments for 2020 must be paid by July 15, 2020.
Extensions for 2019 tax returns can be requested to extend the filing of the forms to October or November, 2020 depending on the type of return to be filed, but all taxes must be paid with the July 15 extension for the extension to be valid and avoid any interest and penalties. Note: The IRS did extend Storm Disaster Relief to some Southern states including North Carolina, Tennessee, and Mississippi. Victims of storm damage will have until October 15, 2020 to file returns and pay their taxes.
In other news, the Senate has passed an extension until August 8, 2020 for the Paycheck Protection Program (PPP) that was set to expire last night (June 30) at midnight. The House has not yet responded to this extension. The House would have to affirmatively vote on the extension, and the President would need to sign it before any additional applications could be accepted.
The PPP still has approximately $130 Billion available to give to small business taxpayers. It is hoped that this extension would encourage those who have not yet applied for a loan to do so. Some members of Congress have expressed a need to “revamp” the PPP to target businesses in most need of additional help. Both the House and the Senate are favoring a second stimulus package to be discussed in late July.
We will continue to keep you updated. Should you have any questions, please don’t hesitate to reach out to your tonneson + co representative.