April 1, 2020 Update: As anxiously anticipated, Governor Murphy joined all other States in providing New Jersey taxpayers relief by extending the income tax deadline to July 15, 2020, the same date that federal tax filings are due under the IRS extension. In a Joint Statement released in the late morning of April 1st, the Governor, along with Senate President Steve Sweeney and Assembly Speaker Craig Coughlin, stated they “have reached agreement that the state income tax filing deadline and the corporation business tax filing deadline will be extended from April 15th to July 15th.” They further announced that New Jersey’s fiscal year should be extended to September 30th and affirmed their commitment to “to working together to enact the necessary legislation and supplemental appropriations to accomplish these goals.” See the full text of the joint statement here.
Last week, we posted that, after a few false starts, the IRS announced the federal income tax filing due date was automatically extended to July 15, 2020, which meant that both tax returns and tax payments originally due to be filed April 15th with the IRS are extended three months.
As of close of business March 31, 2020, all States with an April 15 tax deadline provided some extension…except New Jersey.
In Pennsylvania, the deadline for taxpayers to file their 2019 Pennsylvania personal income tax returns is extended to July 15, 2020, matching the federal filing deadline. The PA Department of Revenue will also waive penalties and interest on 2019 personal income tax payments through the new deadline of July 15, 2020. This extension applies to both final 2019 tax returns and payments, and estimated payments for the first and second quarters of 2020. Like the IRS, the Department of Revenue is encouraging taxpayers who are able to file their returns do so and do it electronically so that the Department can continue to process returns as Commonwealth offices are closed, and issue applicable refunds. Visit www.revenue.pa.gov for information.
In New Jersey, despite near assurances from Gov. Murphy that an announcement confirming an extension of New Jersey’s tax filing deadline is imminent, no extension has been announced or formalized. On Friday, March 19, 2020, the State Senate approved Bill A3841, which provides for an automatic extension based on the IRS-extended filing and/or payment date. Because the Bill was drafted before the IRS announcement was made, it was general in nature, but includes an outside date to file and pay New Jersey income taxes by June 30, 2020 (i.e., two weeks before the new IRS deadline). The Bill further provides that a taxpayer shall not be subject to penalties or interest if the return is filed by the end of the extension. Although a number of COVID-19 Relief Bills were sent with A3841 and approved by the Governor on March 20th, Bill A3841 – or any similar legislation regarding an extension of New Jersey’s tax day – has not yet been approved. The deadline in New Jersey for filing income taxes remains, at this time, April 15. Visit www.state.nj.us/treasury/taxation/ for information.
Jacklyn Fetbroyt is a founding member of Kang Haggerty & Fetbroyt LLC and is currently a committeeperson of the Voorhees Township Committee. Among other things, Jackie focuses on counseling companies and business owners through all stages of their ventures from conception to dissolution, assisting her business clients in all of their needs for maintenance and growth. On Township Committee, Jackie strives to be a resource to and ears of the residents in her hometown.
*KHF does not provide tax counsel, but is happy to provide referrals to a tax attorney or other professional.
In this ever-changing landscape of information and legislation, please be aware that the information contained in this blog post may no longer be relevant or applicable. The content of this post is for informational purposes only and should not be construed as legal advice or legal opinion.