In response to the COVID-19 situation, certain tax filing and payment deadlines at both the State and Federal levels have been changed for the 2019 tax year.
At the Federal level, the Treasury Department and the IRS extended the 2019 income tax filing and payment deadlines for all taxpayers who file and pay their Federal income taxes on April 15, 2020 to July 15, 2020, including estimated tax payments for tax year 2020 that were due on April 15, 2020. Federal payroll taxes and federal information returns are not covered by the postponement.
The deadlines for the payment of 2019 individual retirement account contributions, health savings account contributions, and employer qualified retirement plan contributions have been moved to July 15, 2020.
In addition, under the CARES Act, employers can defer the employer portion of their Federal social security taxes for the rest of 2020. Half of the deferred 2020 taxes will be due in 2021 and the remainder will be due in 2022. For employers who are not taking a Paycheck Protection Program (“PPP”) loan, all of the employer’s portion of 2020 social security taxes can be deferred, and for employers who receive a PPP loan, the employer’s share of 2020 social security taxes can be deferred until the date the employer’s loan is forgiven.
In Colorado, the Department of Revenue department adopted emergency rules specific to income tax payments that would otherwise have been due April 15, 2020 (these rules do not apply to fiscal years that have other tax due dates). The income tax payment deadline for payments that would have been due April 15, 2020 for tax year 2019 has been extended to July 15, 2020, without interest, for all taxpayers. The estimated tax payments deadline for payments that would have been due between April 15, 2020 and June 15, 2020 has been extended to July 15, 2020, without penalties. In addition, the income tax filing deadline for all income tax returns that were required to be filed by April 15, 2020 has been extended to October 15, 2020.