COVID-19 Tax Relief Updates

COVID-19's effect on the economy

In response to the COVID-19 National Emergency, Holtz, Slavett and Drabkin will be maintaining this web page containing updates to Taxing Agency COVID-19 Relief Policies including tips and potential pitfalls.  (Updated as of April 8, 2020).

 

Internal Revenue Service

  • IRS Tax Collection Relief: On March 25, 2020, the IRS issued its most recent COVID-19 Tax Relief Policy. It primarily provides suspension of tax collection actions and postponement of installment payments and payments related to Offers in Compromise. More precisely, the IRS announced that it will suspend filing tax liens and tax levies. In addition, it suspends all installment payments due between April 1 and July 15, 2020. More information.
  • IRS Currently Due Tax Payments Relief: The IRS announced that Taxpayers can defer federal income tax payments due on April 15, 2020 to July 15, 2020. More information.
  • IRS Tax Examination Relief: The IRS announced that it will be included to not start any new tax return audits (with exceptions where the statute of limitations may be expiring). However, they will continue working on currently opened tax return examination audits remotely. More information.
  • IRS Tax Return Filing Relief: The IRS indicated that the income tax return filing deadline of April 15, 2020 will be extended to July 15, 2020. More information.
  • IRS Employment Tax Relief and Sick Leave Benefits and Credits. The IRS announced various employment related relief policies such as:
    • Paid Sick Leave for Workers
    • Employers receive 100% reimbursement for paid leave pursuant to the Relief Act.
    • Employers with fewer than 50 employees may be exempt from the requirements to provide leave to care for a child whose school is closed or child care is unavailable in cases where the viability of the business is threatened.
    • Employers in certain cases may suspend paying payroll taxes for 30 days and seek expedited claims for benefits to cover employees leave payments.

    More information.

California Franchise Tax Board

  • FTB Tax Collection Relief: No COVID-19 policy announced.
  • FTB Currently Due Tax Payments Relief: The FTB announced that Taxpayers can defer payments of most currently due income tax to July 15, 2020. More information.
  • FTB Tax Examination Relief: No COVID-19 policy announced.
  • FTB Tax Return Filing Relief: The Franchise Tax Board extended most tax filing deadlines from April 15, 2020, to July 15, 2020. More information.
  • FTB Refund Deadline Extension Relief:  In cases where an applicable statute of limitations to file a timely claim for refund expires during the period of March 12, 2020, through July 15, 2020, the FTB will consider the claim timely if filed on or before July 15, 2020.
  • FTB Protest Notice of Proposed Assessment Deadlines Extension Relief:  If the period to file a timely written protest of an NPA expires during the period of March 12, 2020, through July 15, 2020, the FTB will consider the protest timely if filed on or before July 15, 2020.  More information.
  • FTB Appeal Notice of Proposed Assessment and Rehearing Deadlines Extension Relief:  For time periods that expire during the period of March 12, 2020, to July 15, 2020, to file a timely appeal with OTA or a petition for Rehearing challenging FTB’s determination, the appeal or petition will be considered timely if filed with OTA on or before July 15, 2020.  More information.

California Employment Development Department

  • EDD Tax Collection Relief: No COVID-19 policy announced.
  • EDD Tax Examination Relief: No COVID-19 policy announced.
  • EDD Tax Return Filing Relief: If your business is directly affected by COVID-19, you can request up to a 60-day extension to file your state payroll reports and deposit state payroll taxes without penalty or interest. Include the impact of COVID-19 in your written request for the extension. Your request must be received within 60 days from the original past-due date of the payment or return. More information.
  • EDD Currently Due Tax Payment Relief: If your business is directly affected by COVID-19, you can request up to a 60-day extension to file your state payroll reports and deposit state payroll taxes without penalty or interest. Include the impact of COVID-19 in your written request for the extension. Your request must be received within 60 days from the original past-due date of the payment or return. More information.

California Department of Tax and Fee Administration:

  • CDTFA Tax Collection Relief:  Effective April 2, 2020, small business taxpayers, those with less than $5 million in taxable annual sales, can take advantage of a 12-month, interest-free, payment plan for up to $50,000 of sales and use tax liability.  More information.
  • CDTFA Tax Examination Relief: No COVID-19 policy announced.
  • CDTFA Tax Return Filing Relief:  No COVID-19 policy announced. However, may be covered by the Governor’s Executive Order providing for a 60-day delay in filing and payment requirements. More information.
  • CDTFA Currently Due Tax Payment Relief: No COVID-19 policy announced. However, may be covered by the Governor’s Executive Order providing for a 60-day delay in filing and payment requirements. More information.