The information in this publication is provided only for educational purposes and to inform the reader of relevant topics. This is not to be perceived or utilized as formal tax or legal advice. It is up to the reader to seek the necessary and appropriate tax and legal professionals that specialize in these areas for specific guidance.
Please note the purpose of this publication was for timely education in response to the COVID-19 pandemic (in April of 2020). It is up to the reader to seek current education on the topical content included in the publication.
If you have questions about the content of this publication, please contact the authors.
Federal Tax Filing and Payment
The normal tax filing deadline for most tax filers that have a calendar tax year is April 15 unless they were to file for an extension. The United States Department of Treasury and the Internal Revenue Service (IRS) made two announcements about tax filing and payment deferment that had created a bit of confusion regarding tax filing and tax payment deadlines/deferment.
A final clarifying release was made on March 21, 2020 by the Treasury Department and the IRS. Due to the President’s issuance of an emergency declaration because of the Novel Coronavirus-19 pandemic, tax filing, and tax payments that may be owed by some taxpayers that meet specific criteria will automatically have their filing and payments deferred without penalty or interest until July 15, 2020. Any taxes still owed after this deadline will begin to accrue interest and possible penalties beginning on July 16, 2020. (IR-2020-58, March 21, 2020 and Notice 2020-20).1,2
The deferment applies to all taxpayers:
- Individuals
- Trusts and states
- Federal gift tax or generation-skipping transfer tax payment
- Corporations
- Non-corporate
- Tax filers that pay self-employment tax
- Also allows individuals to apply contributions to an IRA, HAS, and Archer MSA for 2019 tax year up to the July 15, 2020 due date
- Payroll taxes can only be deferred under specific circumstances (work with your trusted tax advisor)
The deferment for filing or taxes owed does not include any other filing obligations or dates other than those that were to be filed and tax paid due by April 15, 2020. The deferment also does not include:
- Excise taxes, estimated taxes, and generally payroll taxes except under specific circumstances
- Information returns
- Filing claims for the 2016 year, this still must be completed by April 15, 2020
- Form 4466, Corporation Application for Quick Refund of Overpayment of Estimated Taxes
South Carolina State Income Tax Filing Extension and Payment Deferment
Unfortunately, not all of the states have conformed to the Federal changes. As a tax filer/payer you must work with your local tax professional to determine what if any changes have been made for your own state.
The state of South Carolina has chosen to “align” with the U.S. Department of Treasury and IRS so they have extended the deadline for those income taxes that were to be filed and payments due on April 15, 2020 to July 15, 2020. Other South Carolina tax returns and payments that were due between April 1 and June 1 are now all due on June 1, 2020. This includes taxes such as Use Tax, Admissions Tax, Withholding Tax, and others. Further information can be found through the SC Department of Revenue at Information Letter 20-3 and Information Letter 20-4.3,4
References Cited
- Tax day now July 15: Treasury, IRS extend filing deadline and federal tax payments regardless of amount owed. Internal Revenue Service. Washington (DC): IRS. https://www.irs.gov/newsroom/tax-day-now-july-15-treasury-irs-extend-filing-deadline-and-federal-tax-payments-regardless-of-amount-owed.
- Update to Notice 2020-18, Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic, Related to Gift and Generation-Skipping Transfer Tax Filing and Payment Deadlines. Internal Revenue Service. Washington (DC): IRS. https://www.irs.gov/pub/irs-drop/n-20-20.pdf.
- SC Information Letter #20-3. State of South Carolina Department of Revenue. Columbia (SC): SC DOR. https://dor.sc.gov/resources-site/lawandpolicy/Advisory%20Opinions/IL20-3.pdf.
- SC Information Letter #20-4. State of South Carolina Department of Revenue. Columbia (SC): SC DOR. https://dor.sc.gov/resources-site/lawandpolicy/Advisory%20Opinions/IL20-4.pdf.
The Clemson Agribusiness Center
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