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May 22, 2020 Canada further extends filing deadlines due to COVID-19

Individual tax returns otherwise due April 30 were previously extended to June 1 with the deferral of the payment of tax payable to September 1st. Filing due dates for personal returns due June 15th (for self-employed persons) were not previously extended  but still had the deferral of tax payable due  September 1st.  Filing beyond these two dates still attracted the late-filing tax penalty.

CRA has announced on May 22nd that for individual filers including self-employed individuals, may file up to September 1st and tax payable at that time without the incurrence of a late-filing tax penalty.

On a similar note, corporate tax returns (T2) otherwise due in June, July or August may be filed up to September 1st without any late-filing penalty.

Trust returns (T3) otherwise due in June, July or August are extended to September 1st.

Information returns such as CRA Form T1135 that are due at the due date of the tax return filer have also been extended to September 1st.

Tax installments for the 2020 taxation year that would otherwise be due after March 18 are still due by September 1st will not attract interest penalties. Tax instalments due after September 1st are presently still payable on their otherwise due dates. This would for example be September 15 and December 15th for individuals.

HST/GST withholdings and remittances due after March 18 are due June 30th. Related filings are still due at their otherwise due dates with no extensions. Presently, there has been no announcement to defer payments that are otherwise due after June 30th.

CRA is extending businesses a temporary wage subsidiary for another 12- week period to August 29, 2020.

Information on this program may be examined at https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html.

Information and updates on all programs may be examined on the home page at https://www.canada.ca/en/revenue-agency.html.

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Extended deadlines to pay and file due to COVID-19

Canada

  1. Individual tax returns otherwise due April 30 are due June 1 unless further extended. You may defer payment of the tax payable including tax instalments that may have been otherwise due after March 18th   to August 31st. No penalties or interest will be levied during this extended period for tax payable that was due after March 18, 2019 including tax instalments.
  2. If installments were due prior to March 18 and are currently unpaid they will likely attract instalment interest charges where applicable.
  3. Self- employed individuals still must file their T1s by June 15th.
  4. CRA Form T1135 and other foreign information returns that attract penalties for late filing, appear to be due to coincide with extended filing date of your personal tax return.
  5. Trust T3 filings with a December 31, 2019 taxation year have extended due date of May 1 from March 31st. Any tax payable and installments are deferred to August 31st.
  6. Corporations that file T2 returns have the same extended due date for tax payable and tax instalment to August 31st but still have their 6-month filing due date for filing the T2.
  7. HST/GST withholdings and remittances and related filings are still due with no extensions.
  8. CRA is offering businesses a temporary wage subsidiary permitting eligible employers to reduce the amount of payroll remittances during the period March 18, 2018 and June 20,2020. Information on this program may be examined at https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/frequently-asked-questions-wage-subsidy-small-businesses.html.
  9. The Charities Directorate is extending the filing deadline to December 31, 2020, for all charities with a Form T3010, Registered Charity Information Return due between March 18, 2020 and December 31, 2020.

United States

  1. The IRS has extended the due date and tax payable date for individuals from April 15th to July 15th without interest and penalties for tax payable and instalments.  There is no need to file IRS Form 4868 extension form for extending the filing due date.  The cap on this tax deferral is $1M.
  2. This payment relief applies to individual tax returns including self-employed individuals and is extended to trusts and estates.
  3. For corporations (C corporations) income tax payment deadlines up to $10M are automatically extended until July 15th for their 2019 tax due. This also included estimated tax payments for 2020 that are due on April 15, 2020.
  4. For U.S. persons residing outside the United States, the normal due date or automatic extension is June 15th or 2 months after the April 15th due date. It appears that this automatic extended due date will become September 15th however that is not clear.
  5. It is advisable for those individuals residing outside the U.S, still should if needed, file the 4868 by June 15th that will give them an extended date of October 15th, however tax payable currently may be deferred till July 15th.
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