As the coronavirus continues to spread, federal and state governments are taking measures to lessen the economic impact of the pandemic.
Among these actions are changes to provide relief for millions of taxpayers.
While the situation is evolving daily, here’s a current snapshot of tax relief measures on both national and state levels.
Federal Filing Deadline Extended
The most significant COVID-related tax change is the extension of the filing deadline from April 15 to July 15, 2020.
Here are the key points to note:
- The extension applies to tax filing, tax payment, and estimated taxes due the first quarter of 2020.
- All taxpayers and businesses can take advantage of this additional time without penalties or interest.
- Relief is automatic; taxpayers do not need to file additional forms or call the IRS to qualify.
- Penalties and interest will begin to accrue on unpaid balances as of July 16, 2020.
Many other tax payment dates remain the same. For those who make quarterly payments, the “second” payment for 2020 is still due on June 15.
State of Oregon Relief Measures
On March 25, the Oregon Department of Revenue (DOR) announced the state’s tax filing and payment deadlines would align with the new federal deadline of July 15, 2020.
Oregon’s changes are like those of the IRS:
- All taxpayers and businesses are eligible.
- Relief is automatic; taxpayers do not need to file additional forms or call the DOR.
- Interest and penalties will not begin accruing until July 16, 2020.
One notable exception is estimated tax payments for tax year 2020—the April 15, 2020 estimated tax payment deadline remains.
Tax Changes for Other States
Several states have announced revised filing guidance, but most have not.
While the IRS will reportedly increase pressure on states to align with the new federal deadline, it’s important to check with your state tax agencies for further details.
An American Institute of Certified Public Accountants (AICPA) tax filing guidance summary by state and further information can be found here.
Additional Considerations
The deadline for making 2019 IRA and Health Savings Account contributions is extended to July 15, 2020.
The IRS has also advised that high-deductible health plans can pay for coronavirus-related testing and treatment without jeopardizing their status.
For Further Questions
If you have a special tax consideration or need clarification about the new rules, please contact Vista or your tax professional. We are happy to help.