The U.S. Treasury Department and Internal Revenue Service have announced that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020. Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax.
N.C. Department of Revenue recently announced that they will extend the April 15 tax filing deadline to July 15 for individual, corporate, and franchise taxes to mirror the announced deadline change from the Internal Revenue Service. In addition to the filing extension, the NCDOR will not charge penalties for those filing and paying their taxes after April 15, as long as they file and pay their tax before the updated July 15 deadline.
The Treasury Department and IRS today began implementing the Employee Retention Credit included in the CARES package signed into law last week.
The program provides a fully refundable tax credit for 50 percent of wages, up to $10,000, for each employee kept on the payroll by businesses that have taken a financial hit because of the pandemic.
Businesses qualify if they have been fully or partially shuttered by government order, or if their gross receipts are below 50 percent of what they took in during a comparable quarter in 2019. They are no longer eligible once their gross receipts rise above 80 percent of the comparable quarter.
The IRS published guidelines today for businesses that want to apply for the credit, which is applied against the employers’ share of payroll taxes.
The agency also issued a notice to shield employers from penalties they may have incurred for failing to deposit employment taxes when tapping a tax credit Congress created to help them cover wages for sick leave and family leave.