New York State and Federal Income Tax Filing Deadlines Moved to July 15
New York City business and excise taxes penalties waived between March 16 and April 25
To help our clients navigate the coronavirus (COVID-19) crisis, Keane & Beane is providing numerous Legal Alerts on a variety of issues. The information contained in this Legal Alert is applicable as of today, March 23, 2020. Many situations are so fact specific and nuanced that this Legal Alert only addresses some of the more pressing ongoing issues. The discussion below is therefore general and does not address all considerations and specific analyses that may need to be undertaken prior to taking action.
Federal Income Tax Return Filing Deadline Moved To July 15
On Friday, March 20, 2020, Treasury Secretary Steven Mnuchin announced that the 2019 tax return filing and payment deadline for individuals and businesses will be moved from April 15 to July 15 in light of the coronavirus pandemic. All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.
- The April 15, 2020 due date for filing 2019 federal income tax returns and remitting 2019 federal income tax payments has been automatically postponed to July 15, 2020.
- The April 15, 2020 due date for 2020 first-quarter estimated income tax payments has similarly been extended to July 15, 2020.
- This will apply to individuals, trusts, and estates, but only for income tax filings and payments.
- Gift tax payments and estate tax payments will not qualify for the extended filing and payment date.
- There is no limitation on the amount of payment that may be postponed. Notice 2020-18 supersedes an earlier announcement that had implemented a maximum aggregated payment deferral amount of $1 million, which no longer applies.
- Notice 2020-18 did not address second-quarter 2020 estimated income tax payments. The due date for these payments remains June 15, 2020. *However, it is unlikely that the second-quarter payment would be due before the first.
New York State Income Tax Return Filing Deadline Moved to July 15
- New York State taxes are due on April 15th of every year. If you cannot finish your tax return by that date, you can apply for an automatic extension for filing your tax return. New York grants a free six-month extension to any taxpayer who files for an extension on or before the April 15th deadline. https://www.tax.ny.gov/pit/file/ext.htm
- In 2020, New York will follow the IRS in waiving penalties and interest for late tax returns and payments filed by July 15, Robert F. Mujica, the state budget director, said Friday at a news conference with Gov. Andrew M. Cuomo.
- State Budget Director Robert Mujica, announced on March 20, that New York State will move its state income tax filing deadline to July 15 as electronic filing is tied to the federal deadline.
- New York State will also waive penalties and interest on sales tax collections due March 20th from businesses. The sales tax deadline will stand, but penalties and interest won’t be charged.
- It is unclear whether the April 15, 2020 due date for 2019 IRA contributions has been similarly extended.
New York City Department of Finance Memorandum Business Tax Filing Extensions and the COVID-19 Outbreak
- The New York City Department of Finance (DOF) recognizes that taxpayers and return preparers affected by the COVID-19 outbreak may be unable to meet certain New York City filing and payment deadlines. Therefore, DOF Commissioner Jacques Jiha is exercising his authority under the Administrative Code of the City of New York to allow for a waiver of penalties for DOF-administered business and excise taxes due between March 16, 2020, and April 25, 2020.
- Taxpayers may request to have the penalties waived on a late-filed extension or return, or in a separate request. If you file an extension or return or make a tax payment in accordance with these rules, you will not be subject to any late filing, late payment, or underpayment penalties.
- For purposes of the above filings, while late filing and late payment penalties are waived, interest, where applicable, at the appropriate underpayment rate, must be paid on all tax payments
- All paper filings under this announcement should be marked “COVID-19” on the top center of the first page. The same relief will be provided to adversely affected electronic filers.
Penalty Abatements may be requested by writing to:
NYC Department of Finance
P.O. Box 5564
Binghamton, NY 13902-5564
Or through the online portal at www.nyc.gov/dofaccount, or send an email to Penalty_Abatements@finance.nyc.gov. Please include the letter identification on your notice, or your EIN. https://www1.nyc.gov/assets/finance/downloads/pdf/fm/2020/fm-20-2.pdf
Prior Keane & Beane Covid-19 Legal Alerts
Keane & Beane, P.C. has prepared several Legal Alerts concerning the State’s response to COVID-19 and the impacts on local governments. Our Legal Alerts are available at the links below:
- Remote Notarization Allowed Under Cuomo Executive Order through April 18, 2020
- Force Majeure Clauses and the Coronavirus
- Executive Order 202.4 – COVID-19: Reduction in Workforce By Municipalities
- Open Meetings Law Considerations in Light of COVID-19
- Updates From Governor’s March 16, 2020 Press Conference
- Governor’s Executive Order Prohibits Municipalities from Unilaterally Issuing Emergency Orders in Response to COVID-19 Outbreak
- President Trump Signs Families First Coronavirus Response Act
- New York Enacts Law Providing Job Protection and Pay for New Yorkers Quarantined as a Result of COVID-19
Consult Counsel Regarding Specific Questions
Given the fluidity of this rapidly developing situation, we encourage you to reach out to a member of the Keane & Beane Trust and Estates Practice Group with questions regarding specific situations. We note that there are legislative developments in Congress and New York which impact each of these questions, and which we are closely monitoring. Because of the frequent developments, you should consult counsel regarding specific questions.
We understand many of you have concerns about your income tax or other tax returns. We’re listening and taking steps to help.
As always, if you have any questions on trust and estates issues or need immediate assistance, please email Steven A. Schurkman David Glasser, Patrick J. O’Sullivan, or Jeffrey A. Cohen White Plains based counsel at Keane & Beane, P.C. and members of the firm’s coronavirus response team.