As the COVID-19 situation continually changes, we are still committed to putting our clients first & keeping you informed with the latest. Please read the information below for the changes the IRS & SC State have made to the 2019 tax deadlines.
Federal & SC State Deadline Changes
- Filing & Payment deadline has been extended from April 15, 2020 to July 15, 2020 (with no penalties or interest). Interest and penalties will begin to accrue on July 16, 2020.
- Second Quarter due date remains June 15, 2020, as there is no indication that there will be an extension.
- If you need additional time to file, you will need to file an extension by July 15, 2020 to extend to the following due date of October 15, 2020.
- 2019 IRA, Roth, 529 and HSA Contributions remain due April 15, 2020.
- You may read more about the announcement from the SC Department of Revenue here: https://s3.hatchbuck.com/MediaFiles/9242fff644c91d9384a4440ff82abe20ac2c5f698f22a4740a761937c2700cf7.pdf
Other State(s) Filing Changes
- Each state is determining their own deadline changes and/or waiving penalties.
SC State Tax Relief
- All tax returns & payments due between April 1-June 1 have been suspended – including state and local sales & use tax, property tax returns (filed with SCDOR), withholding taxes, moto fuel user tax, state accommodations tax, beer, wine & liquor tax. These returns and taxes are to be filed and paid by June 1, 2020. Nothing needs to be filed with the SCDOR to qualify for this tax relief.
*Please note, although the deadlines have been extended, we urge you to send us your 2019 tax documents to us as soon as possible. In lieu of drop offs, we encourage the use of electronic mediums to share your information with us via Email, Sharefile or Fax (803) 799-4212. If you need any assistance sending your documents, please contact Carlita at 803-799-0555 ext.24. If you are unable to send us your information electronically, please place your documents in our secured drop box located in the courtyard on Laurel Street.
For Employers (with < than 500 employees)
- Required to pay employees up to 10 days (up to $511 per day) that are unable to work due to COVID-19.
- Required to pay certain employees a percentage of their pay for up to 12 weeks (up to $200 per day) that are unable to work due to COVID-19.
- Tax credit eligibility – will relate to the pay amounts above & will be a ‘payroll tax credit’.
- The above requirements supersede any sick leave policy the employer may already have outlined.
For SC Employers (with lay-off workers)
- You may apply for unemployment benefits for your workforce.
- Benefits will be extended for up to 6 weeks for all lay-off workers.
- You may be eligible for unemployment benefits: https://dew.sc.gov/docs/default-source/default-document-library/coronavirus-and-unemployement-benefits.pdf?sfvrsn=43a3bfd8_0
Article: CARES Act Tax Provisions Aim to Stabilize Pandemic-Ravaged Economy
As a reminder, most of our team is working remotely, so email is the best and fastest way to get in contact with your CPA. If you have any general questions, you may call our office at 803-799-0555 and a member of our team will assist you.
Please check back frequently, as we will continue to share the most up to date information on our website (hobbscpa.com). Thank you for your patience and cooperation during this time.