Tax Day Extended to July 15: What That Means for Pennsylvania Corporate Net Income Tax Payers

As previously discussed, the IRS recently extended the deadline for filing income taxes from April 15 to July 15 in an effort to provide relief to taxpayers. The 90-day extension will have a significant impact on Pennsylvania Corporate Net Income (CNIT) taxpayers.

Currently, the Pennsylvania Department of Revenue (Department) has only announced that the deadline has been moved for the state’s individual income taxpayers and has remained silent on whether the extension also applies to CNIT taxpayers.

The federal deadline being extended may in itself initiate changes to Pennsylvania’s CNIT group, since the state deadline is tied to the federal individual income tax deadline by Pennsylvania law. For example, IRS Notice 2020-18 states that corporations are included in the definition of “person,” to which the extension of the federal tax deadline would presumably be applicable, and Pennsylvania Section 403(a)(1)(ii) of the Tax Reform Code of 1971 states that the PA CNIT is due “… on or before 30 days after the return to the federal government is due …” Since the language in the statute expressly ties the Pennsylvania CNIT deadline to the federal deadline, by operation of law – and regardless of guidance from the Department – it’s likely the PA CNIT deadline will be extended to August 15. Stay tuned.

Payment Dates

As with the filing date, the Pennsylvania CNIT payment deadline is also likely extended to August 15 by operation of law pursuant to the extension of the federal deadline, since Section 403(a)(1)(ii) applies to both the filing date and the payment date of Pennsylvania CNIT. It’s currently unclear whether penalties or interest would accrue due to the extension, but if Pennsylvania CNIT receives similar treatment to the state’s Personal Income Tax, no penalties or interest will accrue, based on prior guidance from the Department.

Estimated Payments for 2020

The federal extension would likely have no impact on current due dates of estimated tax payments for Pennsylvania CNIT, since Pennsylvania tax laws pertaining to due dates are not tied to the federal code. PA HB 1232, approved by the state legislature and signed into law by Governor Wolf, allows the Department to extend estimated payment deadlines for Pennsylvania Personal Income Tax, but lacks language that would give the Department express authority to change estimated tax deadlines for CNIT taxpayers.

Our tax advisors will continue to monitor state legislation that affects CNIT taxpayers. If you have questions about how the extended tax deadline affects your Pennsylvania CNIT, contact Schneider Downs.

Please visit our Coronavirus resource page at schneiderdowns.com/our-thoughts-on/category/Coronavirus for related content.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at contactSD@schneiderdowns.com.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2020 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on

The IRS Wants to Verify Your Identity—Wait, Is This a Scam?
International, Tax BY Vicky Lu
IRS Releases New Proposed Partnership Schedules (K-2 and K-3) for International Tax Reporting
S Corporation Rollover Equity – Involve Your CPA Early and Often
Reshoring and Manufacturers
Third Party Risk Management Planning During COVID-19
Reflections from the Recent Employee Benefit Plan Season

Register to receive our weekly newsletter with our most recent columns and insights.

Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us

contact us

Map of Pittsburgh Office
Pittsburgh

One PPG Place, Suite 1700
Pittsburgh, PA 15222

contactsd@schneiderdowns.com
p:412.261.3644     f:412.261.4876

Map of Columbus Office
Columbus

65 East State Street, Suite 2000
Columbus, OH 43215

contactsd@schneiderdowns.com
p:614.621.4060     f:614.621.4062

Map of Washington Office
Washington, D.C.

1660 International Drive, Suite 600
McLean, VA 22102