BHT&D Certified Public Accountants Blog

The Internal Revenue Service has extended the federal tax return filing date from April 15, 2020 to July 15, 2020. 

They have also issued an update on their plan to implement the new paid leave provisions of the Families First Legislation.

The following are other tax related deadlines as of this posting:

• If you have a balance due on your 2019 personal tax return, you have until July 15, 2020 (originally April 15, 2020) to pay the balance without late payment penalty.
• 1^st Quarter 2020 Estimates can be paid by July 15, 2020 (originally April 15, 2020) without late payment penalty.
• At this time, Federal 2^nd Quarter Estimates have NOT been extended from its June 15, 2020 due date.
• On March 27, 2020, Governor Whitmer extended the tax return filing date from April 15, 2020 to July 15, 2020 for state of Michigan and city of Detroit income tax returns.
• Other Michigan cities with income taxes due on April 15 will now be due on July 15, while cities with income taxes due on April 30 will now be due on July 31.
• Your return can still be filed as soon as you have returned your signed Form 8879 to your accountant.

Update on Families First Leave Legislation:

The IRS issued an update on its planned implementation of the new paid leave provisions of the Families First legislation.  Click here for the IRS Notice.

In the notice, the IRS promised specific guidance that it will release this week. Some of the highlights include the following items:

• Employers will be able to claim credit for paid sick leave and/or paid EFMLA leave against the following:
  • Employee federal tax withholding
  • Employee SS & Medicare taxes
  • Employer SS & Medicare taxes
• If the employer’s credit is greater than the payroll taxes it owes, then it will be able to request “accelerated payment” from the IRS, which the IRS expects to process within two weeks or less. The IRS will be announcing the details of this new procedure this week.
• There will be a 30-day “temporary non-enforcement policy” in which the Department of Labor will not bring enforcement actions against employers for failing to comply as long as employers are acting reasonably and in good faith.

While our offices are closed to the public during this health crisis, we are still available to help you with questions you may have on this topic.  Please feel free to contact one of our CPAs at (616) 642-9467, or fill out this brief form to schedule a complimentary accounting consultation.

Photography by: Mario Alberto Magallanes Trejo