I hope that everyone is managing the shut-down/quarantine well.
The deadline for federal tax filing and payments has been extended, as has the deadline for Virginia state income taxes. You may have noticed recent news headlines around changes to tax deadlines in response to COVID-19.
We’re here to help simplify what you need to know and how these recent changes may impact you.
The deadline to file and pay your 2019 federal taxes without penalty is now July 15, 2020. Once filed, tax payments can be made with no interest or penalties on or before July 15. This due date extension is automatic for individuals. If more time to file federal tax returns beyond July 15 is required, a filing extension can be requested. The IRS offers a few different kinds of payment plans if you still need more time to pay beyond July 15. While interest will apply, setting up a payment plan can help you avoid penalties. Virginia grants an automatic 6-month extension to file your return.
In response to the Coronavirus pandemic, any income tax payments due during the time period of April 1, 2020, to June 1, 2020, will now be due on June 1, 2020. This includes individual and corporate income taxes paid to Virginia Tax. (Please keep in mind that “filing” your return due date differs from “paying” the tax liability due date.)
For Virginia, late payment penalties will not be charged if payments are made by June 1, 2020. However, interest will still accrue, therefore it is recommended to pay by the original filing due date. Virginia’s Tax Bulletin 20-4 regarding the Virginia Income Tax deadlines can be found here. The American Institute of Certified Public Accountants (AICPA) is presently lobbying to have all states match the automatic extension terms of the federal due dates, payments, and penalty waivers. Virginia has provided extensions to June 1, 2020 for payments, while federal income tax payments are now due July 15, 2020. Typically, federal and state returns are filed together. A rather informative article from the NY Times regarding the COVID-19 relief bill can be found here.
Please feel free to reach out to WPR CPA if you have any questions!