The federal income tax filing deadline has been extended to July 15 from April 15. Meanwhile, refundable payroll tax credits have become available under the Families First Coronavirus Response Act signed into law on March 18 and it was announced last week the Internal Revenue Service has established aThe IRS urges those due refunds to file as soon as possible as most are being issued within 21 days.
Under the automatic extension from April 1 taxpayers can defer payments without penalties or interest, regardless of the amount owed. This applies to all taxpayers: individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax. No additional forms need to be filed although those who need additional time can request an extension
The new payroll tax credits are designed to reimburse employers, dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees.
Employers receive to 80 hours of paid sick leave and expanded paid child care leave when employees' children's schools are closed or child care providers are unavailable. Employers receive 100-percent reimbursement with health insurance costs included and no payroll tax liability. Self-employed persons receive an equivalent credit. Businesses with fewer than 50 employees are eligible for an exemption.
Besides extending the deadline, the IRS has temporarily Taxpayer Assistance Centers and discontinued face-to-face service throughout the country until further notice.
