Extended due dates remain the same amid COVID-19 July 2020 Tax News

The COVID-19 pandemic has changed many things this year. One of the biggest changes, as it relates to income taxes, was moving the due date for income tax returns from April 15 to July 15. That due date is fast approaching and you may have clients impacted by COVID-19 that are concerned about filing timely. If you are unable to file your client’s income tax return by July 15, don’t forget that California has an automatic extension that allows you to file their individual return by October 15, 2020.

Keep in mind that the automatic extension is only to file the tax return, but the due date for taxes payments is still July 15. If your client does not pay their tax liability by July 15, 2020, they will incur a late payment penalty plus interest.

Your client can use Payment for Automatic Extension for Individuals (Form 3519) if:

  • They owe income tax for 2019 and are unable to file by July 15, 2020
  • Their estimate tax was too low and they need to pay additional tax

Paying tax due as soon as possible could help them avoid or minimize further accumulation of penalties and interest. If the taxpayer does not file their tax return by October 15, 2020, they will incur a late filing penalty plus interest from the original due date (July 15, 2020) of the tax return.
Businesses also have an automatic extension to file their tax returns. Visit our website to find COVID-19 tax return and payment due dates, original due dates, and extension due dates for personal and the different business entity types:

  • Calendar year filers
  • Fiscal year filers
  • Estimated tax payments

If your client is unable to pay their tax bill and want to get on a payment plan, they can apply for an installment agreement. From our home page at ftb.ca.gov go to Pay, then select Payment Plan for more information.