June 4 Update
House Bill H.R. 7010 passed the Senate and is now on its way to the President to sign. In addition to amendments relating to the PPP loan program, the bill provides that the deferral of employment taxes is now available even for taxpayers who have PPP loans that re forgiven under the CARES Act. This will allow taxpayers who obtain PPP loans and intend to apply for loan forgiveness to also defer the applicable employment taxes.
April 30, 2020 Update
The IRS has issued Notice 2020-32, which provides further guidance on some certain tax consequences associated with PPP loans. In particular, the IRS has confirmed that expenses paid with PPP loans will not be deductible to the extent attributable to the portion of the loan forgiven.
The Internal Revenue Service announced further tax relief for individuals, trusts, estates, corporations and other non-corporate tax filers.
Individuals and Businesses Extensions
Penalties and interest have been waived for every U.S. taxpayer, including those living and working abroad, who wish to wait until July 15, 2020 to file their 2019 federal tax return and/or pay any taxes owed. Should an individual need an extension beyond the July 15 deadline, they must file Form 4868.
A business who needs an extension must file Form 7004. Granted extensions will allow individuals and business owners until October 15, 2020 to file. This extension will not extend the July 15 deadline to pay taxes owed. Taxpayers requesting the October extension should estimate their tax liability and pay in full by July 15 to avoid accumulating interest and penalties.