Tax Code Updates

CDL remains proactive in providing you the most up-to-date information regarding the tax changes that have been enacted due to COVID-19. 

The Federal Income Tax filing deadlines are extended from April 15 until July 15.  It remains unclear whether the extension will apply to the filing deadline for federal payroll tax returns and deposits, or payments and filings associated with estate and gifts.

Individual and C-Corporations can defer federal income tax payments, without making good-faith estimates of the tax liability, and regardless of the amount owed.

Individuals:

Individuals can defer payment of their 2019 federal income tax from April 15 to July 15.

They can also defer their initial 2020 quarterly estimated federal income tax payment, including self-employment tax to July 15.

C-Corporations (that use the calendar year for tax purposes):

C-Corporations can defer any amount of their 2019 federal income tax payments, with no interest and penalties.  The relief will cover the amount owed for 2019 tax year, and the amount due for the initial quarterly estimated tax payment for the 2020 tax year. 

Trusts and estates (that use the calendar year for tax purposes):

Federal income tax filings and payments for the 2019 tax year of trust and estates are due on July 15.  The initial 2020 quarterly estimated tax payments are also deferred to July 15.

President Trump signed into law the Families First Coronavirus Response Act.  The new law mandates paid leave benefits for small business employees affected by the COVID-19 emergency and establishes related tax credits and Social Security and Medicare (FICA) tax relief for their employers.  The provisions of this act are far reaching.  We will distribute a more in-depth summary of the act in the coming days.

For more details regarding this and the March 21 IRS Notice 2020-18, click here: 

https://www.checkpointmarketing.net/n.cfm/page/e120/key/406864079G3352J0N9N285608P0P3686T2/

We kindly request that clients use electronic delivery of documents via our Firm’s Sharefile, posted on www.cdlcpa.com.  While we recommend you stay at home, should you need to come to CDL, please call in advance so that we can take the necessary steps to protect you and our staff.  A drop off location has been set up near the elevator banks on the 9th floor of our lobby.

CDL will continue to operate our regular business hours.  Should circumstances change, we will notify you on www.cdlcpa.com, Facebook and LinkedIn.  Should you need additional information, please contact a Firm representative for more details. 

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