Tax Relief

Keep up to date on deadline extensions and relief

Concerned about your tax payments?

The City. State, and Federal Governments are providing temporay tax relief for individuals and businesses.

City of Kansas City

The City of Kansas City is extending the 2019 Earnings Tax filing and payment deadline to July 15, 2020, mirroring the guidance issued by the Internal Revenue Service and the state of Missouri Department of Revenue.

Industy Tax Guides

Missouri Department of Revenue

The Missouri Department of Revenue is providing tax relief for individuals and businesses. The deadline to file income tax returns has been extended from April 15, 2020, to July 15, 2020.

Income tax payment deadlines for individual and corporate income returns with a due date of April 15, 2020, are extended until July 15, 2020. This payment relief applies to all individual income tax returns, income tax returns filed by C Corporations, and income tax returns filed by trusts or estates. The Department of Revenue will automatically provide this relief, so filers do not need to take any additional steps to qualify.

Internal Revenue Service (IRS)

Coronavirus Tax Relief and Economic Impact Payments

The IRS offers tax help for taxpayers, businesses, tax-exempt organizations and others – including health plans – affected by coronavirus (COVID-19).

Two refundable payroll tax credits help reimburse small and midsize businesses, dollar for dollar, for the cost of providing coronavirus-related leave.

Deferral of Employer-Paid FICA Payroll Taxes

Businesses can now defer the employer portion of FICA taxes through the end of 2020, with all 2020 deferred amounts due in two equal installments, one at the end of 2021, the other at the end of 2022.

Employee Retention Tax Credit

Employee Retention Tax Credits could pay for 50% of your payroll for the rest of 2020 if:

  • You can afford to still pay at least 50% of your payroll for the near future
  • Your business has suffered a significant loss due to COVID-19 (defined as a quarter being 50% less than the same quarter last year)
  • You think that the economic injury might continue (the tax credit only lasts until a subsequent quarter hits 80% of the same quarter last year, or Jan. 1, 2021)

Compare that to the Paycheck Protection Program, which offers a forgivable loan equal to 8 weeks of payroll and a small portion of non-payroll expenses.

Work with your accountant and run the numbers. While you can do the EIDL and PPP (as long as they’re for different expenses), you can’t do the Employee Retention Tax Credit and the PPP. Consult an accountant/CPA to help you with your business.

Filing and Payment Deadline Questions and Answers

These Q&As address the federal filing and payment extension to July 15 due to the COVID-19 (coronavirus) outbreak. These Q&As currently include information on the additional extension to Oct. 15, first quarter estimated tax payments, IRAs and HSAs.

Source: City of Kansas City/KC Sourcelink COVID-19 Resource Page