No Action Necessary to Obtain Extension. Safe Harbor and COVID. The payment should equal the balance of the amount of tax that will be reported as due on Nov. 15. The IRS will not charge an underpayment penalty if you pay at least: 90% of the tax you owe for the current year, or; … Nov. 15 is … The SBA previously had extended the safe harbor from May 7 to May 14. 2020 saw an extension to allow contractors and developers to take possession of products due to COVID. No Other Changes to Guidance Issued on May 13, 2020 That Is Detailed Below. The guidance issued Tuesday stated that the extension will be promptly implemented through a revision to the SBA’s interim final rule providing the safe harbor. As for the extension, MOST States don’t require their own extension. The extension of the safe harbor and administrative convenience necessitate a corresponding date change to the interim final rule that SBA posted on its website on April 28, 2020, which was published in the Federal Register on May 4, 2020 (85 FR 26321), regarding PPP loan The IRS has provided a safe harbor to help taxpayers avoid these penalties. Threshold to require estimates starts at having a tax liability of $400, at least that was what it was in prior years. Run the numbers and if using Safe Harbor #3 probably use an estimated percentage rate of 8% as a good round number for most states. This extension will be promptly implemented through a revision to the SBA’s interim final rule providing the safe harbor. If all of the tax due was paid with the entity's first extension, use franchise tax Webfile or submit Form 05-164, Texas Franchise Tax Extension Request, to request a second extension. However, there are still COVID disruptions in global supply … The SBA intends to provide additional guidance before May 14 on how it will review borrowers’ certifications. The safe harbor extension for the return of PPP funds to May 18 is granted in the answer to Question 47 on the PPP’s FAQ page. Same rules as fed: pay 100% of prior (110% if AGI over 150K) or 80% of current year. UPDATE: Safe Harbor Extension Deadline Extended to May 18, 2020. However, in 2021, no such allowances will be made. SBA previously announced this intended extension in nonbinding guidance published on May 5, 2020. SBA intends to provide additional guidance on how it will review the certification prior to May 14, 2020. Safe Harbor Rule & Payment Information. Just do a quick Google Search for your State’s rules regarding your extension. Current Year—f the estimated taxes you pay turn out to be at least 90% of your final bill for 2021 and you made payments on time, no penalties will apply. 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