For the most part, the answer is no – that is to say, individuals are still required to pay taxes, as are businesses. That being said, there are a few COVID-related exceptions.
First, in the CARES Act, Congress allowed for a deferral of the employer’s portion of Social Security taxes for periods between March 27, 2020 and December 31, 2020, payable 50% on December 31, 2021 and 50% on December 31, 2022 — all without interest or penalties. Note that this does not include a deferral of the employer-portion Medicare taxes, nor does it include a deferral of any taxes withheld from an employee’s paycheck – those must continue to be reported and paid on time as usual.
Second, New Mexico’s legislature enacted a deferral of New Mexico personal, corporate, and fiduciary income tax payments, as well as certain payroll, gross receipts, and compensating taxes, to April 2021, provided the related tax returns were timely filed by the July 15, 2020 deadline. If the tax returns weren’t timely filed, the payments cannot be deferred.
Please keep in mind that you’d be merely deferring these tax payments – meaning you’d still need to pay them by the revised deadlines. If businesses spend money that should be paid in taxes on other priorities, they will need to pay those taxes with money made in the future – money that will also be subject to taxes. In a sense, businesses could be robbing Peter to pay Paul.
If you’re serious about deferring taxes, reach out to an accountant or tax attorney to go over the specifics of what you can and can’t defer. Taxes are complicated in the best of times. In a pandemic, they’re hard to wrap one’s head around. It’s always a good idea to have an expert weigh in so that you’re not underpaying or overpaying
Do you have more questions about taxes this year? Do you need help with an installment agreement or perhaps an offer in-compromise? Maybe you would like some advice about how to deal with sales or gross receipts tax this year. Contact us today and we can help. We have a tax attorney available for you to consult with.