The state Franchise Tax Board announced Friday that individuals and businesses would get an extension to file tax returns to June 15. Partnerships and limited liability companies taxed as partnerships were excused from the filing deadline that was scheduled for Monday. Individual filers with an April 15 deadline have a two-month extension, as do those who have to file quarterly estimated tax payments on April 15.
The board, which handles the administration of income taxes in California, made the announcement following an executive order from the Democratic Gov. Gavin Newsom. On Thursday, Newsom issued an order that included a variety of public health and economic relief actions aimed at easing what is expected to be severe fallout from the new coronavirus on both fronts. The extension granted to tax filers was part of that series of actions.
Betty T. Yee, who is both the state controller and chairwoman of the board, said Californians who are struggling to file because of constraints caused by COVID-19 should not have to worry about being in arrears.
"During this public health emergency, every Californian should be free to focus on their health and well-being," Yee said in a statement. "Having extra time on their taxes allows people to do this, as the experts work to control the spread of the coronavirus."
California's action comes as the nation waits to see if the Internal Revenue Service will also extend the federal filing deadline of April 15. On Wednesday, President Donald Trump called for an extension of the income tax filing deadline and asked Congress to provide immediate payroll tax relief in an attempt to stem the negative impact that COVID-19 has had on the economy.
In a rare Oval Office speech, Trump said he had instructed the U.S. Department of the Treasury to allow deferred tax payments by affected individuals and businesses without penalties or interest.
Meanwhile, other jurisdictions are taking steps to provide relief through deferred filing. Among them is the District of Columbia, which is scheduled Tuesday to consider emergency legislation that includes deferred payment of property taxes for businesses.
According to a memo circulated Saturday by staff of the district's Committee of the Whole, led by Democratic Council Chairman Phil Mendelson, the district would provide a 90-day deferral of property taxes for hotels and a 60-day deferral for other businesses.
Mendelson could not immediately be reached for comment Monday evening.
--Additional reporting by Abraham Gross and Stephen Cooper. Editing by Neil Cohen.
For a reprint of this article, please contact reprints@law360.com.
