State-specific Updates: COVID-19
July 30, 2020
Below are the state responses to coronavirus (COVID-19). We are keeping this page updated as we continue to learn more. We have listed our region (Pacific Northwest) first because it is most relevant for our clients. The rest of the country follows, in alphabetical order.
March 27: Portland Business License Tax and Multnomah County Business Income Tax (including Pay Ratio Surtax, Heavy Vehicle Tax, and Residential Rental Program Fees):
- The Revenue Division is automatically extending the Portland and Multnomah County business tax return filing and payment due on 4/15/2020 until 7/15/2020.
- For C-Corporations that have a 5/15/2020 deadline with the State of Oregon, the deadline for the Portland and Multnomah County business tax return filings and payment due on 5/15/2020 is also extended until 7/15/2020. Tax returns due after 4/15/2020 (or 5/15/2020 for C-Corporations) are not extended at this time.
No penalties or interest will accrue until July 16, 2020 for any tax filing or payment extended under this directive.
Estimated Portland and Multnomah County business tax payments for tax year 2020 are not extended. Interest on the underpayment of quarterly estimated payments per PCC 7.02.710 B and the “safe harbor” provisions of PCC 7.02.710 C will still apply. More information here.
March 25: Per the Oregon Department of Revenue, they plan on having guidance available by Wednesday, March 25. Once this guidance is released, the Revenue Division will make a formal announcement about the Portland Arts Tax and the Portland and Multnomah County business taxes.
The Revenue Division has received several questions asking if the same relief will be provided for the City and County taxes. We are currently evaluating our options to provide relief to Portland and Multnomah County business and Arts Tax taxpayers.
The City and County generally follow the guidelines of the Oregon Department of Revenue. We will make a formal announcement after Oregon publishes their decision.
Oregon State (Deadline: July 15)
June 4: The Oregon Department of Revenue issued a new temporary administrative rule (150-317-1500) regarding penalty waivers for the underpayment of estimated corporate activity tax payments due to COVID-19 for excise tax purposes. The regulation includes measures establishing that no penalty will be assessed against taxpayers making a good faith effort to comply with estimated corporate activity tax payment deadlines for the current year. More info here.
April 17: The Oregon Department of Revenue reminded taxpayers that first quarter estimated payments for corporate activity tax (CAT) are due by April 30. The DOR provided information that (1) taxpayers expecting more than $5,000 of CAT liability for the calendar year must make estimated payments; (2) it won’t assess underpayment penalties to taxpayers making a good faith effort to estimate the first quarter payments for the CAT; (3) taxpayers must document and retain the information used to estimate the commercial activity as well as documentation used to show how they calculated the estimated excise tax payments; and (4) taxpayers won’t be required to submit the information when they file the return or make estimated payments, but must keep the information in records. More information here.
March 25: For Personal Income Tax (PIT), Transit Self-Employment Tax, and Fiduciary Taxpayers: the Oregon return filing and payment due date for tax year 2019 is automatically extended from April 15, 2020 to July 15, 2020. Estimated tax payments for tax year 2020 are not extended. The tax year 2019 six-month extension to file, if requested, continues to extend only the filing deadline until October 15, 2020.
For Corporate Excise/Income Taxpayers: the Oregon return filing and payment due date for tax year 2019 is automatically extended from May 15, 2020 until July 15, 2020. Fiscal year returns due after May 15, 2020 are not extended at this time. Estimated tax payments for tax year 2020 are not extended.
As a result of the extension of the due dates for filing Oregon tax returns and making Oregon tax payments to July 15, 2020, interest and penalties with respect to the Oregon tax filings and payments extended by this Order will begin to accrue on July 16, 2020.
Taxpayers do not need to file any additional forms or call to qualify for this automatic Oregon tax filing and payment extension. More information here.
March 17: Per the release by the Department of Revenue, the individual income tax return deadlines are based on the directive of the IRS that allows for an extension to pay. For individuals, the filing deadline remains 4/15/20 with payments not due until 7/15/20. For businesses (both C and S Corporations), the filing deadlines are 30 days after the federal deadline (4/15 and 5/15, respectively). However, as of 3/17/20, the Department of Revenue has not issued a statement as to how the state payment deadlines will be affected by the IRS payment deferral for business entities.
March 13: The Oregon Department of Revenue has issued several options to grant relief under specific situations for several areas of tax.
Personal Income Tax – Tax return deadline is tied to the federal deadline so the state will automatically connect to any changes issued by the IRS. Penalties may be waived for causes beyond the taxpayer’s control. Estimated payment dates for personal income tax are not extended but the department may waive interest if imposing the interest would be against equity and good conscience.
Corporate Activity Tax – First quarterly payments remain due on April 30, 2020. The department will not assess underpayment penalties to taxpayers making a good faith estimate for the first quarter. More info here. The Oregon Department of Revenue (DOR) has suspended its series of Corporate Activity Tax (CAT) update meetings due to concerns about the spread of the novel coronavirus, or COVID-19. The department will continue to announce alternative strategies for providing CAT update information to business taxpayers and tax professionals. More info here.
March 10: City of Seattle is offering relief to small businesses by extending the B&O tax filing and payment deadline until later this year. Eligible small businesses that reported taxable income of $5 million or less during the 2019 tax year. The 1st and 2nd Quarterly 2020 B&O tax returns will tentatively be due on or before Oct. 31, 2020. More information here and here.
July 21: Under guidance issued by the Washington Employment Security Department, Employers making state unemployment insurance (SUI) contributions can apply to have some of their COVID-19 UI benefits offset from the state’s COVID-19 unemployment account rather than having the benefits impact their experience rating (potentially resulting in a higher SUI tax rate in 2021). Application deadline is September 20, 2020. More information and application here.
July 15: The Washington Department of Revenue issued guidance for taxpayers who are working with the DOR on a collection related issue for sales and use, excise, property, and estate tax purposes. The DOR clarified that in such cases it will delay the issuance of tax warrants, notices of withhold and deliver, and revocations until Sept. 1. More information here.
June 1: The Department of Revenue updated timelines on penalty and interest waivers after the Governor issued Proclamation 20-20.3. Waivers will be provided as follows: 1) The interest on outstanding tax balances until the termination of the COVID-19 state of emergency, or June 17, whichever occurs first, and thereafter the interest will begin accruing on the outstanding tax balances; 2) the BLS delinquency fee on late renewals of licenses expiring in February through May; and 3) the penalties for nonprofit applications and renewals. More information here.
April 23: To request an extension for paying tax returns prior to the due date by sending a secure email in your My DOR account or by calling Revenue’s customer service team at 360-705-6705, Monday through Friday 8 a.m. to 5 p.m. If you miss the deadline for requesting an extension, request a penalty waiver when filing your return along with an explanation of how COVID-19 Pandemic caused the delay. More information here.
April 17: The Washington Department of Revenue discussed business relief during the COVID-19 pandemic for excise, property, and estate tax purposes. The DOR will waive (1) interest on outstanding balances until the termination of the COVID-19 State of Emergency or May 4, whichever occurs first; (2) the Business Licensing Service delinquency fee on late renewals of licenses expiring in February, March, and April; and (3) penalties for nonprofit applications and renewals for exempt property for the months of February through May. The DOR will also delay issuing new compliance assessments, tax warrants, notices of withhold and deliver, and revocations until mid-May. Estates filing a state and federal estate tax return can request an extension until J uly 15. Estates filing only a state tax return and negatively impacted by the pandemic can request an extension during the governor’s state of emergency. More info here.
April 15: Clark County Assessor will allow companies until May 31, 2020, to file their business personal property listing before imposing any penalties for late filings. Assessor Van Nortwick determined the COVID-19 order is a reasonable cause and businesses should not be penalized for missing the April 30 due date.
This personal property late fee waiver is separate from Treasurer Topper’s previously announced relief program for businesses impacted by the mandatory closure and the due date extension for business personal property taxes.
The May 31 extension applies only to the penalty for not filing a personal property listing by the April 30 due date. More information here.
March 19: The Clark County Treasurer released a statement stating they are still planning on the April 30 deadline because the tax dollars support emergency responders like EMS, fire fighters, and police. However, business owners impacted by the recent closure orders due to the novel coronavirus will have the option of paying their business personal property taxes over time with no penalties or collection fees. The Office will begin accepting payment plan requests by email on Monday, March 23. For businesses wishing to discuss a current year 2020 business personal property payment plan, they can email email@example.com. More info here.
March 10: The Employment Security Department adopted rules to support taxpayers impacted by isolation or quarantine as a result of COVID-19 for sales and use, property, excise and estate tax purposes. The rules waive financial penalties for employers who file their tax reports late, pay their taxes late, or don’t respond to information requests in a timely fashion as a result of COVID-19. More info here.
Alabama (Deadline: July 15)
March 24: The Governor announced an automatic extension from April 15 to July 15 for filing and payment of all taxpayers, including indiviudals, trusts and estates, corporations and other non-corporate tax filers. The extension applies to all income tax types including corporate income tax, Financial Institution Excise Tax (FIET), and the Business Privilege Tax (BPT). More info here.
March 20: The state has not officially announced income tax relief but is anticipated to follow the IRS extensions for extended filing and payment for returns from 4/15/20 to 7/15/20. More info here.
March 19: Sales & Use Tax relief:
- Any food & beverage business unable to pay Feb, Mar, April 2020 state sales tax liabilities will receive a waiver for late payment penalties through June 1. Must be registered with the Department of Revenue as engaging in NAICS Sector 72 business activities (preparing meals, snacks, beverages for immediate consumption).
- Small Retail Business sales tax late payment penalty waived through June 1. Small retail businesses have average retail sales in prior year of $62,500 per month or less. More info here.
March 31: The State of Alaska extended the deadline to file tax returns, file reports, and make payments for all taxes except for the Oil and Gas Property Tax and Oil and Gas Production Tax types. All other tax types administered by the Tax Division and Charitable Gaming will have their deadlines extended until July 15, 2020. This extension will apply to returns (includes amended and information returns), reports, and payments due between April 10, 2020 (or sooner if the bill is signed sooner) and July 14, 2020. Because the tax deadlines are extended, penalty or interest will be not be assessed if returns and payments are received for the affected periods on or before July 15, 2020. More info here.
Arizona (Deadline: July 15)
March 20: For individual, corporate and fiduciary taxes, the State deadline for filing and paying state income taxes from April 15 to July 15, 2020. The new deadline means taxpayers filing state tax returns or submitting payments after the previous April 15 deadline will not be assessed late filing or late payment penalties.
Taxpayers anticipating they will need more time beyond the new July 15 deadline to file state income taxes should consider filing for an extension by submitting Arizona Form 204 by July 15. Taxpayers do not need to submit Arizona Form 204 if they have already received a federal extension from the IRS. More information here.
March 11: Governor Ducey issued an executive order and declared a public health emergency to help agencies respond to COVID-19. However, as of today, no resolutions have been issued related to the tax deadlines or payments. More info here.
Arkansas (Deadline: July 15)
April 1: The Arkansas Department of Finance and Administration extended due dates for 2019 returns and payments for S Corporations, fiduciaries and estates, partnerships, and composite returns to July 15, 2020. The Department confirmed that the 2020 estimated tax payment deadlines are not extended. More information here.
March 24: Arkansas extended the state deadline for Individual Income taxes from April 15th to July 15, 2020, to match the federal extension. All other taxes are still required to be reported and filed based on current deadlines. More information here.
March 16: Department of Finance and Administration has not issued updates to tax deadlines but issued a statement to encourage taxpayers to use online tools. The tax deadline remains at 4/15 for individuals with an automatic extension to taxpayers who have filed for automatic federal filing extension.
California (San Francisco)
May 1: The San Francisco Treasurer and Tax Collector May 1 announced that the property tax payment deadline for the second installment is extended to May 15 due to the COVID-19 pandemic. More information here.
April 1: Business Taxes for Small Businesses – Quarterly estimated tax payments of the Gross Receipts Tax, Payroll Expense Tax, Commercial Rents Tax, and Homelessness Gross Receipts Tax due on April 30, 2020, are waived for taxpayers or combined groups that had combined San Francisco gross receipts in calendar year 2019 of $10,000,000 or less. These quarterly estimated tax liabilities must instead be paid along with annual tax payments for tax year 2020, which will generally be due by March 1, 2021.
These bills are typically mailed in late March, but businesses with 2019 gross receipts of $10,000,000 or less will receive a letter instead of a bill.
Business License Fees – The Office of the Treasurer & Tax Collector collects annual license fees on behalf of the Department of Public Health, Fire Department, Police Department, Entertainment Commission and the Office of Cannabis. The due date for license fees otherwise due on March 31, 2020, is extended to June 30, 2020.
The license bills have already been mailed. For businesses that have already received them, our office will be following up with an email and letter confirming the due date change by the end of March. The bills will not be reissued. More information here.
March 20: Property Tax – The San Francisco Treasurer March 20 announced that it has not extended the April 10 deadline to pay property tax. The treasurer informed taxpayers who are unable to pay on time for reasons related to COVID-19 that they must submit an online request for a penalty waiver after the deadline passes. More information here.
California State (Deadline: July 15)
July 22: The California Franchise Tax Board updated frequently asked questions on the expiration of special tax relief offered from March 12 through July 15 related to COVID-19 for individual income, trust income, and corporate income tax purposes. More information here.
San Francisco: Effective July 13 (unless amended by the mayor), San Francisco Ordinance 104-20, would require large employers of 100 or more employees to guarantee reemployment to employees who were laid off following the declaration of emergency due to the coronavirus (COVID-19) on February 25, 2020. The ordinance outlines several factors and requirements for employers. More information here.
May 28: Due to the COVID-19 pandemic, the California Franchise Tax Board issued guidance stating that the deadline for submitting statute of limitations waivers using an e-signatures option is temporarily extended to July 15 for corporate income, individual income, and trust income tax purposes. More information here.
May 4: The California FTB has implemented a temporary suspension on certain collection activities within our personal income tax, business entity tax, and nontax debt (court-ordered debt and vehicle registration collection) programs through July 15, 2020:
- Wage attachments, bank levies, liens, and field agent calls/visits are suspended
- Suspension of business entities with the Secretary of State (SOS) are delayed
- The Top 500 Delinquent Taxpayers List is delayed
- An extension has been granted to taxpayers whose financial hardship was scheduled to expire
The board has also suspended most new and existing income tax refund offset requests. The board is delaying non-filer compliance activities by suspending Requests, Demands, and related Notices of Proposed Assessment for prior year returns until July 15, 2020.
Audit programs are continuing with modifications, but the board will allow taxpayers an extended time to protest or appeal to July 15, 2020. More info here.
April 3: The California Department of Tax and Fee Administration (CDTFA) has announced small business taxpayers (i.e., those with less than $5 million in taxable annual sales), can take advantage of a 12-month, interest-free, payment plan for up to $50,000 of sales and use tax liability. Under the program, qualifying businesses can enter payment plans to defer up to $50,000 of sales tax liability over a 12-month period, interest free.
For taxpayers choosing to defer their first quarter 2020 liability, for example, up to $50,000 of the obligation would now be paid in 12 monthly installments, with the first payment not due until July 31, 2020.
Payment plan requests can be made through the CDTFA’s online services system in the coming months. In a Payment Plan FAQ, the CDTFA advises as follows: (1) regarding the taxes and fees to which this payment program applies – at this point, it is available only for sales and use tax liabilities; (2) regarding how the payment plans work – qualifying sales and use taxpayers with deferred liabilities up to $50,000 will pay their tax due in 12 equal monthly installments; no interest or penalties will be assessed against the liability; and (3) regarding taxpayers who owe more than the $50,000 limit – if a taxpayer owes more than $50,000 and needs a payment plan for the amount over $50,000, the CDTFA will have to have the taxpayer enter into one payment plan and adjust the appropriate amount of interest off toward the end of the 12-month period. More information here.
April 1: The California Franchise Tax Board updated frequently asked questions (FAQs) on the impacts of COVID-19 to corporate income and individual income taxes. The FAQs updates include: 1) the July 15 extension applies to information return filings for any person or entity that made reportable transactions during 2019; 2) the amount required to be withheld and remitted for the transfer of real property is due by the 20th day of the month following the close of escrow; 3) information on non-resident nonwage withholding and payments extension dates; 4) penalties will be reviewed on a case-by-case basis for not submitting forms or payments due to office closures; and 5) electronic payments for real estate withholding aren’t allowed due to the closures. More Information here.
Property Tax – California Association of County Treasurers issued a statement indicating that the deadline of April 10 for the second installment of property taxes would remain in place but that the tax collectors have the authority to waive penalties and would accept requests for relief. San Francisco and San Mateo counties extended property tax deadline to May 4. More information here.
March 31: California Department of Tax and Fee Administration (CDTFA) announced all small businesses will have an additional three months to file returns and pay taxes administered by the department. Additionally, all businesses will have an extra 60 days to file claims for refund from CDTFA or to appeal a CDTFA decision to the Office of Tax Appeals.
CDTFA is providing a three-month extension for a tax return or tax payment to any businesses filing a return for less than $1 million in tax. For the approximate 99.5% of business taxpayers below the $1 million threshold for their current California sales and use tax obligation, returns for the 1st Quarter 2020 will now be due on July 31, 2020. The same provisions apply to the other tax and fee programs administered by CDTFA. Qualifying taxpayers are not required to file a request for extension or request relief from penalty or interest. This automatic extension will remain in effect through the reporting of taxes and fees due on or before July 31, 2020. More information here.
March 30: California Franchise Tax Board will allow for an extension of time for taxpayers to claim a refund, to file a protest of a Notice of Proposed Assessment (NPA) with the Franchise Tax Board (FTB) and to file an appeal or a petition for rehearing with the Office of Tax Appeals (OTA). It also allows an extension of time for the FTB to issue an NPA. The FTB will consider them timely if filed on or before July 15, 2020. More info here.
March 18: California Employment taxes: Employers may request up to 60-day extension of time from the Employment Development Department (EDD) to file state payroll reports and/or deposit payroll taxes without penalty or interest A written request must be received within 60 days from the original delinquent date of the payment or return. Mail request to Employment Development Department, PO Box 826880, Sacramento, CA 97280-0001. More info here.
After the IRS moved the federal payment deadlines to July 15, California updated its payment deadline to July 15 as well. The following California individual and entity deadlines are extended:
- 2019 tax returns
- 2019 tax return payments
- 2020 first and second quarter estimated payments
- 2020 taxes and fees for LLCs
- 2020 non-wage withholding payments
March 12: The Governor of California issued an executive order with the following measures: 1) extending the corporate income, individual income, sales and use, excise, property and trust income tax filing deadline to May 11 for taxpayers unable to file a timely tax return or make a timely payment due to compliance with public health requirements related to the COVID-19; and 2) requiring the Franchise Tax Board, the Board of Equalization, the Department of Tax and Fee Administration, and the Office of Tax Appeals to provide taxpayers with extensions for filing, payment, audits, billing, notices, assessments, claims for refund, and relief from subsequent penalties and interest. More info here and here.
March 1: Employers directly affected by the coronavirus can request an extension of up to 60 days to file and pay payroll taxes without penalties or interest for corporate income tax purposes. The extension applies statewide to employers who submit a written request within 60 days from the original delinquent date of the payment or return. More info here.
Colorado (Deadline: July 15)
July 17: Colorado recently enacted SB 20-207, which increased the employer state unemployment insurance (SUI) taxable wage base over the next several years. The bill also allows the state to use funds under received by the U.S. Department of Labor under the Coronavirus Aid, Relief, and Economic Security (CARES) Act to bolster the state UI trust fund, which is projected to have a deficit of approximately $2 billion by the end of fiscal year 2021. This move can help to lower the overall future-assigned SUI tax rates. More information here.
June 30: Colorado issued a publication – CARES Act Tax Law Changes & Colorado Impact – addressing how recent retroactive federal tax provisions interact with Colorado income taxation. More info here.
June 26: Colorado enacted H.B. 1024 which decouples Colorado’s net operating loss provisions from the CARES Act. More information here.
June 1: The Colorado Office of Economic Development and International Trade June 1 announced business resources to deal with the COVID-19 pandemic. The resources include loans and tax exempt loan forgiveness, individual income, corporate income, Social Security, and self-employment tax deferrals, and economic impact payments for taxpayers. More information here.
May 30: The Colorado governor allowed for another 30 day extension to 2020 statutory deadlines for property tax filing requirements providing for a new deadline of June 30. More info here.
May 4: The Colorado governor has extended the sales and use tax extension for filing and remitting State and State administered local sales tax until May 20, 2020. More info here.
April 18: The Department of Revenue issued emergency rules to extend certain state income tax payment deadlines to July 15, 2020, giving all Colorado individual and business taxpayers the option to make income tax payments for tax years ending in 2019 or 2020 (normally be due between April 15, 2020 and July 15, 2020) by July 15, 2020. This payment extension applies to any qualifying income tax payment, regardless of the amount. More info here.
April 7: The State of Colorado extended the sales and use tax filing and remitting due date to May 20 from April 20, due to COVID-19. The measures include directing the Department of Revenue to waive penalties and interest that would otherwise accrue during the period. The order expires May 5, unless extended further by executive order. More info here.
March 25: Governor Jared Polis has extended the income tax payment deadline for all Colorado taxpayers by 90 days until July 15, 2020. Interest from the due date of the payment until July 15, 2020 is waived. All income tax returns that were required to be filed by April 15, 2020 are granted an automatic six-month extension, and are due on or before October 15, 2020.
In addition, the deadline for estimated payments has also been extended for the 2020 tax year. The penalties for estimated payments are also waived until July 15, 2020. This extension and these waivers do not apply to payments due pursuant to a notice of deficiency, notice of final determination, demand for payment, installment agreement, closing agreement, or other agreement or requirement to pay.
This is similar to the Internal Revenue Service (IRS) extension, but applies to any income tax payment, regardless of the amount. Unlike the federal government, the state will not impose any caps on the amount of tax that can be deferred. More information here.
March 23: The state of Colorado will mirror IRS extension for filing and payment from April 15 to July 15. More info here.
Connecticut (Deadline: July 15)
April 14: The Connecticut Department of Revenue Services extended filing and payment deadlines for individual income, corporate income, trust income, gift, and estate tax purposes due to the COVID-19 pandemic. Previous declarations had not extended all tax types but DRS confirms extension to July 15 for individual income, trust & estate income, pass-through entity, corporation, gift, and unrelated business income tax returns and includes both tax payments and estimates. More information here.
April 7: Gift Taxes – Filing and payment deadline for gift tax returns for gifts made in 2019 extended from April 15, 2020 to July 15, 2020.
April 1: The State is providing relief for property and excise taxpayers due to the COVID-19 outbreak. The measures extends the deadline to file income and expense statements until Aug 15. More info here.
March 30: Sales Tax – DRS is granting an automatic extension of filing and payment deadlines for Sales Tax and Room Occupancy Tax. Taxpayers that have $150,000 or less in annual Sales Tax liability qualify for an automatic extension of time to file and pay. Similarly, taxpayers that have $150,000 or less in annual Room Occupancy Tax also qualify for this relief. A taxpayer that collects both Sales Tax and Room Occupancy Tax must evaluate each tax separately to determine eligibility for relief.
- For monthly Sales Tax and Room Occupancy Tax filers: returns and payments due March 31, 2020, and April 30, 2020, are extended to May 31, 2020.
- For quarterly Sales Tax and Room Occupancy Tax filers: returns and payments due April 30, 2020, are extended to May, 31, 2020.
More information here.
March 20: Individual & Trust Taxes – DRS announced that the due date for 2019 individual income tax & trust and estate returns and payments was extended to July 15, 2020. The deadline to remit first and second quarter estimated payments for taxable year 2020 has been extended to July 15, 2020.
The deadlines for filing and payment of sales and use taxes (Form OS-114) have not been extended. Connecticut has also not extended the deadlines for filing of withholding taxes. More information here.
March 16: Business tax – In conjunction with Governor Ned Lamont announcing a state of emergency, the Connecticut Department of Revenue announced that the filing deadline for returns due on or after March 15, 2020 and before June 1, 2020 are extended at least 30 days. In addition, payments associated with the returns are also extended to the corresponding due date in June. Individual returns will be adjusted according to Internal Revenue Service announcement. Deadlines for specific forms available at this website.
Delaware (Deadline: July 15)
March 23: Delaware has extended deadlines for personal income, corporate income, fiduciary income and corresponding payments due in April to July 15, 2020. All other returns are due without extension. More information can be found here.
March 20: No specific tax relief discussed. More info here.
April 27: The Florida Department of Revenue extended the corporate income tax (CIT) payments and returns filing deadlines due to COVID-19. The measures include extending the CIT or franchise tax returns due date to Aug. 3 for all entities and providing that the due date to pay the tax and submit a request for filing returns extension: 1) is extended to June 1 from May 1 for entities with a fiscal year ending Dec. 31, 2019; 2) remains June 1 for entities with a fiscal year ending Jan. 31; and 3) remains July 1 for entities with a fiscal year ending Feb. 29. The order took effect April 27 and expires on the expiration or rescission of the Governor’s executive order 20-52, unless extended. More info here.
March 26: For sales/use taxes, The Department will waive any penalty and interest for February 2020 reporting period for sales/use tax, tourist development tax, and solid waste and surcharge returns if the taxes are reported and remitted by March 31, 2020.
For March 2020 reporting period, taxpayers not adversely affected by the COVID-19 outbreak are required to continue to file and remit on or before April 20, 2020. For taxpayers adversely affected, the Department will extend the due date to April 30, 2020 for sales/use tax, tourist development tax, and solid waste and surcharge returns. Taxpayers who fall into the definition of adversely affected but who are able to file and pay timely are encouraged to do so. More information can be found here.
March 16: The governor indicated during a press conference that some corporate income tax payments can be deferred until the end of the fiscal year. Details for the new payment deadlines has not yet been released. More info here.
Georgia (Deadline: July 15)
June 30: Georgia enacted H.B. 846 which generally conforms Georgia’s tax code to the CARES Act for sales and use and corporate income tax purposes. More info here.
March 25: Georgia Department of Revenue (DOR), in conformance with the U.S. Treasury Department and Internal Revenue Service (IRS), is automatically extending the 2019 income tax filing and payment deadline to July 15, 2020, without penalties or interest. This also includes state estimated income tax payments due on April 15, 2020, for the taxpayer’s 2020 taxable year. More information here.
March 24: Individual and Corporate Income taxes filing and payment deadline automatically extended from April 15 to July 15. More guidance to be issued by the state.
March 1: The Georgia Department of Revenue (DOR) March 1 issued a notice encouraging the use of online services due to concerns regarding the COVID-19 situation for individual income, corporate income, trust income, property, excise, and sales and use tax purposes. The DOR noted it offers several motor vehicle and tax-related services online, without the need for in-person interactions. More info here.
Hawaii (Deadline: July 20)
March 24: 2019 State income tax returns and payments ordinarily due from April 20, 2020 to June 20, 2020 are postponed to July 20, 2020. Additional action is not needed by Income taxpayers to participate in this tax relief program.
The Tax Announcement applies to individuals, trusts and estates, corporations, and other non-corporate tax filers as well as those who pay self-employment tax. The relief applies solely to returns and payments for Tax Year 2019 due from April 20, 2020 to June 20, 2020 and does not include estimated income tax payments for the 2020 taxable year. More information here.
March 18: The Department of Taxation released an Operational Status alert notifying taxpayers that they are maintaining filing and payment deadlines (April 20). More info here.
Idaho (Deadline: June 15)
March 23: The State extended tax filing and payment deadlines from April 15, 2020, to June 15, 2020. The extension applies to all taxpayers – including individuals, businesses, and entities – regardless of the amount owed. Penalty and interest won’t apply if taxpayers file their return and pay the income tax they owe by June 15.
Governor Little also has extended the deadline to apply for property tax relief programs from April 15 to June 15. The programs include property Tax Reduction (circuit breaker), Property Tax Deferral, & 100% Service-Connected Disabled Veterans Benefit. More information here.
March 13: Governor Little issued State of Emergency proclamation but no tax related updates have been issued. More info here.
Illinois (Chicago) (Deadline: July 15)
June 1: The Chicago Department of Finance has issued guidance announcing that it is extending due dates for July through September 2020 for the following taxes for Amusement tax, Bottled Water tax, Checkout Bag tax, Ground Transportation tax, Hotel Accommodations tax, Parking tax, and Restaurant tax. In addition, the filing deadline for 2020 annual tax returns has been extended from August 17, 2020 to October 15, 2020. More information here.
Illinois (State) (Deadline: July 15)
May 3: For Sales tax exemption renewals, the Illinois Department of Revenue announced that it is automatically extending the calendar year 2020 E-number expiration dates until December 31, 2020. Certificate holders do not need to take any action to be granted this extension. More info here.
April 3: The State of Illinois is reminding taxpayers if they have set up an electronic payment to be paid by April 15, 2020, the payment will not automatically be rescheduled to July 15, 2020. If the payment has not been processed, you may be able to cancel or reschedule it. You must cancel or reschedule the payment before its scheduled date. More information here.
March 25: The Illinois Department of Revenue (IDOR) is following the federal government in providing special tax filing and payment relief to individuals and businesses in response to the COVID-19 Outbreak.
The filing and payment deadline for Illinois income tax returns has been extended from April 15, 2020, to July 15, 2020. This automatic extension applies to all individual returns, trusts, and corporations and no additional forms required.
Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020. You will automatically avoid interest and penalties on the taxes paid by July 15, 2020. More info here.
This does NOT impact the first and second installments of estimated payments for 2020 taxes that are due April 15 and June 15. Taxpayers are required to estimate their tax liability for the year and make four equal installments. Taxpayers will not be assessed a late estimated payment penalty if the amount of the installments equals 90% or more of the current year’s liability or 100% of the previous year’s liability.
March 18: Estates with returns and payments due between March 16 and April 15 will receive a 30-day extension for filing and payment. More info here. For sales & use tax, all registered Illinois retailers operating eating and drinking establishments that incurred annual sales tax liability less than $75,000 in calendar year 2019 are eligible for relief from penalties and interest on late sales tax payments for reporting periods of February, March and April 2020. More info here. For income taxes, no specific declaration has been made by the state however, ILCS Sec 35 5/505 indicates that Illinois extension is linked to the federal extension and filing date for both individuals and corporations.
Indiana (Deadline: July 15)
April 17: The Indiana Department of Revenue announced that filing and payment requirements and dates for taxes collected by businesses remain unchanged for individual income, corporate income, sales & use, and excise tax purposes. Business taxes, including sales, withholding income, food & beverage, county innkeeper’s, and heavy equipment rental tax remain due on the standard due dates as listed on the DOR’s website. Interest and penalties will apply if filing and payment deadlines are missed. The deadlines won’t be automatically waived. Payment plans are available if a business owner is unable to make a scheduled payment after completing the required filing. More information here.
April 2: The Indiana Department of Workforce Development (DWD) announced that employers unable to timely file their first quarter 2020 state unemployment insurance (UI) contribution and wage report and pay the corresponding payment have until May 31, 2020 to file and pay without interest and penalty. More info here.
March 19: Governor Holcomb of Indiana announced that they will align with the IRS to delay state income tax deadline to July 15. In addition, penalties for property tax paid after May 11 will be waived for 60 days. More info here.
July 24: The Iowa Governor issued a proclamation continuing the relaxation of various provisions of the tax code during the COVID-19 outbreak for individual income, property, and excise tax purposes. The measures include temporarily suspending: 1) the imposition of penalty and interest for delay in payment until July 31; 2) requirements for county treasurers to hold tax sales for tax-delinquent properties until July 31; 3) the collection of delinquent taxes by an alternative remedy, including by personal judgment; 4) the requirement for class A beer and wine permit holders to report sales and pay taxes due on or before the tenth day of each calendar month, including the 10 percent penalty; and 5) the expiration of rights of redemption after tax sales. The proclamation took effect July 24, unless otherwise noted, and will expire Aug. 23 unless terminated sooner by the governor. More info here.
July 14: The Iowa Department of Revenue has published guidance describing Iowa’s nonconformity with provisions of the CARES Act of 2020 that commonly affect income taxes for individuals and businesses for tax years beginning in calendar year 2018 or 2019. Iowa generally conforms with federal tax changes, to the extent they affect Iowa income taxes, for tax years beginning on or after January 1, 2020. More information here.
June 29: Iowa enacted H.F. 2641 which decouples from recent federal changes that limit the deduction of business interest expenses, and allowing corporate taxpayers to deduct GILTI from state taxable income and exempts from state income tax any income taxpayers receive through the CARES Act.
May 26: As part of the re-opening of the state, the Iowa governor issued a proclamation further extending the following: 1) suspension of penalty and interest on property taxes; 2) the temporary prohibition against tax sales; and 3) time to make contributions to the Iowa educational savings plan trust. More info here.
March 19: The Iowa Department of Revenue extended filing and payment deadline for the following taxes for any tax due associated with a tax return that is due on or after March 19 but before July 31, 2020. The extension does not apply to estimated tax payments. There will be no late-filing or underpayment penalties for qualifying taxpayers who comply with the extended filing and payment deadlines.
- IA 1040 Individual Income Tax Return and all supporting forms and schedules
- IA 1040C Composite Return and all supporting forms and schedules
- IA 1041 Fiduciary Return and all supporting forms and schedules
- IA 1120 Corporation Income Tax Return and all supporting forms and schedules
- IA 1120F Franchise Tax Return for Financial Institutions and all supporting forms and schedules
- IA 1065 Iowa Partnership Return and all supporting forms and schedules
- IA 1120S S Corporation Return and all supporting forms and schedules
- Credit Union Moneys and Credits Tax Confidential Report
If you need assistance with Iowa tax returns, email firstname.lastname@example.org or call (800) 367-3388. More info here.
The Iowa Department of Revenue (IDR), Iowa Economic Development Authority (IEDA), and the Governor’s Office partnered to provide a small business relief program to businesses impacted by the COVID-19 pandemic. While the IEDA deadline for a small business relief grant has expired, IDR will continue receiving applications from businesses requesting a tax deferral. Complete and submit a Small Business Relief Tax Deferral application to request deferral. More information here.
Kansas (Deadline: July 15)
May 26: The governor of Kansas issued another executive order extending a previous order that established the extended filing due dates of July 15th. More info here.
April 2: Individual Income Tax, Corporate Income Tax, Privilege Tax – The Director of Taxation will waive any applicable penalty and interest for taxpayers whose first-quarter 2020 estimated tax payments are made after April 15, 2020 but on or before July 15, 2020. More information here.
March 24: Individual and Corporate Income taxes filing and payment deadline automatically extended from April 15 to July 15.
Kentucky (Deadline: July 15)
July 17: The Kentucky Department of Revenue released frequently asked questions (FAQs) concerning the income tax withholding requirements and the assertion of nexus for employees temporarily working in the state due to the COVID-19 emergency. The guidance is limited to state personal income and state business taxes, because the Department does not administer license, occupational or other excise taxes imposed by local Kentucky taxing jurisdictions. More information here.
July 1: The Kentucky Department of Revenue released an FAQ on COVID-19 related tax relief for corporate income and individual income tax purposes. The FAQs provide, in part, that taxpayers must make adjustments on their income tax returns to account for federal or state differences with regard to the CARES Act and that employers employing Kentucky residents or nonresidents who reside in states with which Kentucky has a reciprocal agreement won’t need to change their withholding practices during the period when employees are working from home. More information here.
April 17: The Kentucky Department of Revenue adopted the income tax relief set forth in Internal Revenue Service (IRS) notice 2020-18, Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic, as well as the additional relief provided in IRS notice 2020-20 and notice 2020-23 for individual income, corporate income, and trust income tax purposes. The information includes (1) the applicability of tax relief to individual, corporate, limited liability, fiduciary, and pass-through filers with filing and payment deadlines on or after April 15 and before July 15; (2) the extension to July 15 from April 15 for Kentucky income tax returns and payments; (3) an automatic return filing extension to October 15 for taxpayers who previously requested a deadline extension; and (4) the filing extension to November 15 for C-corporations that previously requested extensions. More info here.
April 3: The Kentucky Department of Revenue announced taxpayers who submit an automatic return filing extension for individual income, corporate income, and trust income taxes, the extended return filing due date will be Oct. 15 or, for C corporations, Nov. 15. More information here.
March 24: The Department of Revenue extended the filing and payments for individual income, fiduciary income, corporate income, and privilege taxes to July 15, 2020. No penalty or interest shall be imposed if paid on or before July 15, 2020. However, estimated tax payments are still due April 15, 2020. More information here.
Louisiana (Deadline: July 15)
July 13: Louisiana enacted H.B. 19, which authorizes COVID-19 affected retail businesses with no more than 50 employees nationwide to participate in the Quality Jobs Program. More information here.
Louisiana also enacted H.B. 37, which requires the Secretary of the Louisiana Department of Revenue, when a taxpayer’s health or their preparer’s health was impacted by COVID19, to waive penalties and interest for the late filing and/or late payment of tax due in or for 2019 or 2020, with an original due date from March 11, 2020 to July 15, 2020. More information here.
May 26: The Louisiana Department of Revenue announced it will waive penalties for state sales tax filers who submit their March 2020 and April 2020 returns, and remit the sales tax and any interest owed, by June 30, 2020. Those who cannot pay the full amount due will still be eligible for penalty relief if they enter into an installment agreement by June 30, 2020. More information here.
March 30: The Louisiana Department of Revenue (DOR) ruled: 1) it will automatically waive the penalty for any underpayment of estimated individual income and corporate income tax otherwise due for the April 15 and June 15 declarations, provided 90 percent of the amount of last year’s corresponding payments are timely paid; 2) any late filed election by a pass-through entity to pay tax on its income for the 2019 tax year filed before July 16 shall be considered filed timely; and 3) it will extend the deadline for a tax credit transfer or for the execution of a binding agreement to transfer such credit by 30 days for income and franchise tax returns originally due between March 1 and May 30. Corresponding relief is granted for fiscal year filers. More info here.
March 23: Louisiana Department of Revenue (LDR) is extending the deadline for state income taxes to July 15, 2020. The extension applies to Louisiana individual, corporation, fiduciary and partnership income tax returns and payments.
For sales tax, the State extended the deadline for the return and payment due March 20, 2020 to May 20, 2020. This extension is automatic, and the taxpayer does not need to do anything. Delinquency penalties will be waived if the payment is received by May 20, 2020. More information here.
March 17: Officially announced the extension of the income and franchise tax returns to July 15. The automatic extension includes individuals, fiduciary, partnership and corporation returns. More info here.
April 30: Maine Revenue extended second quarter estimated tax payments to July 15th for individual income tax, corporate income tax, franchise tax, and fiduciary income tax for estates and trusts. The extended payment due date also includes any estimated or final payments, originally due April 16, 2020, through June 15, 2020, for fiscal-year filers, for these taxes. More info here.
Maryland (Deadline: July 15)
July 24: Unemployment – Maryland legislation (H1663) signed into law by Governor Larry Hogan establishes that individuals are not required to be separated from employment to be eligible for Maryland unemployment insurance (UI) benefits and that employers are prohibited from terminating an employee solely on the basis that the employee is isolated or quarantined due to COVID-19. The legislation also contains a fiscal note concerning the noncharging of employer accounts for COVID-19 UI benefits under existing law. However, the DOL’s frequently asked questions (FAQs) do not include information concerning how employer UI accounts will be charged for COVID-19 UI benefits. Hopefully the DOL will soon confirm and clarify. More information here.
Income Tax: The Maryland Comptroller issued a tax alert concerning the impact of the Coronavirus Aid, Relief, and Economic Security (CARES) Act on individual income, corporate income, and trust income tax liabilities. The comptroller provides that the CARES Act amendments impacted the state’s provisions concerning: 1) business interest expense deductions; 2) limitation of excess business losses for noncorporate taxpayers; 3) net operating losses; and 4) qualified improvement property and bonus depreciation. The comptroller also provides examples to clarify the changes introduced by the CARES Act. More info here.
April 17: The Maryland Department of Assessments and Taxation issued information on individual income, corporate income, sales & use tax, excise tax, and property tax for businesses due to COVID-19. The department provided information that (1) the law establishes a refundable, 50% payroll tax redit covering up to $10,000 paid per employee, including benefits from the period of March 13 to December 31; (2) businesses and individual taxpayers will get a 90-day extension for tax payments without interest or penalty for late payments if 2019 tax payments are made by July 15; (3) the comptroller extended business-related tax filing deadlines to June 1; (4) businesses who paid sales & use taxes for March may request a refund of the payment; and (5) the current year’s deadline to submit annual reports and personal property tax returns is automatically extended to July 15. More info here.
April 14: Estimated income taxes – The due date for estimated income tax payments for the second quarter of 2020, originally due on June 15, 2020, is extended to July 15, 2020. Previously, the comptroller had only extended the first quarter payment from April 15, 2020 to July 15, 2020.
Income tax refund claims – The statute of limitations for filing an income tax refund claim for tax year 2016 is also extended. Normally, a claim for refund must be filed by three years from the due date of the return. Due to the state of emergency, claims for refund from tax year 2016 must be submitted on or before July 15, 2020. More info here.
April 1: The Maryland Comptroller issued a tax alert superseding the previous alert issued on March 20 on individual income, corporate income, trust income, sales and use, excise, and estate tax filing and payments. The alert provides: 1) an extension of the April 15 filing and payment deadline to July 15 for individual, corporate, pass-through entity, and fiduciary taxpayers; 2) the extension doesn’t affect the filing or payments of estate taxes; 3) information on the cessation of comptroller collection efforts; 4) an extension of returns due in March, April, and May to June 1 for sales and use, withholding, admission and amusement, alcohol, tobacco, and motor fuel excise taxes, as well as tire recycling fees, and bay restoration fee returns; and 5) an extension to July 31 for unclaimed property reporting and payments for insurance companies for the calendar year. More info here.
March 23: The Comptroller extended sales and use taxes, withholding taxes, alcohol taxes and cigarette and tobacco taxes taking place in February, March, and April of 2020 to June 1, 2020. More information here.
March 20: Businesses that paid sales & use tax early may request a refund by emailing email@example.com or calling (410) 260-4020. Other questions related to COVID-19 can also be directed to the email set up.
March 18: State of Maryland will follow the federal extension for individual and corporate taxpayers to file and pay until 7/15/20. Includes fiscal year filers with tax years ending 1/1/20-3/31/20. A federal extension form is required but no separate extension form is required. More info here. Due date for March quarterly payments is extended to July 15. Business-related tax filings extended to June 1 which applies to business returns with due dates in March, April or May, 2020 (sales & use tax, withholding, admissions & amusement, alocohol, tobacco, motor fuel taxes, tire recycling fee and bay restoration fees). More info here.
Massachusetts (Deadline: July 15)
July 21: The Massachusetts Department of Revenue renewed an emergency regulation on sourcing income of non-residents telecommuting due to COVID-19. The emergency regulation includes measures: 1) providing that all compensation received for services performed by non-resident employees engaged in Massachusetts immediately prior to the pandemic and now performing such services from outside the state will continue to be treated as Massachusetts source income subject to individual income tax and withholding; 2) allowing a credit for resident employees working in Massachusetts due to the pandemic for income tax liability in another state due to that state’s sourcing rule; and 3) clarifying that employers of such resident employees aren’t obligated to withhold Massachusetts tax to the extent the employer remains required to withhold the tax in such other state. The emergency regulation is effective through the earlier of Dec. 31, or 90 days after the Governor lifts the state of emergency. More information here.
May 28: The Massachusetts Department of Revenue issued guidance on tax appeals and collections stating that the DOR is assisting taxpayers by not canceling payment agreements for missing payments and that the DOR encourages taxpayers filing a new appeal to use MassTaxConnect. More information here.
April 3: The Massachusetts Department of Revenue issued information on tax filing and payment relief due to COVID-19. The information includes: 1) the 2019 individual income, trust income, and corporate excise tax return filing and payment deadline are extended to July 15 from April 15; 2) the first and second installments of estimated personal income tax due on April 15 and June 15 are extended to July 15; 3) the Commissioner of Revenue will waive late filing and payment penalties for corporate excise returns and payments due on April 15 if the returns and payments are filed and made by July 15; and 4) personal income taxpayers are eligible for an automatic extension and the extension will be based on the original due date of the return. More information here.
March 27: The State of Massachusetts extended the 2019 state individual income tax filing and payment deadline from April 15 to July 15 due to the ongoing COVID-19 outbreak. This income tax relief is automatic and taxpayers do not need to file any additional forms to qualify. More information here.
March 19: For sales tax, meals tax, and room occupancy taxes for certain taxpayers, the State has extended taxes due March 20, 2020 thru May 31, 2020 will now be due on June 20, 2020. Additionally, all penalties and interest will be waived. More information here.
March 18: For income/franchise taxes, following IRS tax relief and most taxpayers will be granted automatic 6-month tax extension. DOR may waive penalties under certain circumstances and will work with impacted taxpayers to waive pentalies. For meals tax & occupancy tax, the DOR will waive late-file or late-pay penalties for returns and payments due during the period March 20 through May 31, 2020 . Statutory interest will continue to accrue. To qualify for waiver of penalties, returns and payments must be filed by June 20, 2020. Other types of sales tax penalty abatements will be handled on a case-by-case basis and will be based on reasonable cause. More info here.
July 20: The Michigan Department of Treasury issued an administrative bulletin regarding the application of the sales and use tax industrial processing exemption to personal protective equipment and safety equipment used to prevent the spread of infectious diseases, such as COVID-19. More information here.
May 27: The Michigan Department of Treasury (DOT) issued information on an installment payment option available for business taxpayers deferring sales and use, and withholding tax (SUW) payments for individual income, corporate income, and sales and use tax purposes. The DOT information includes: 1) taxpayers can make SUW tax payments for the February, March, April, and May tax periods on June 20 to either pay the outstanding balance in its entirety or in monthly payments over the next 6 months; 2) monthly filers must submit the outstanding returns for the February, March, April, and May tax periods by June 20 to establish the installment balance; and 3) quarterly filers must submit the outstanding first quarter return by June 20 to establish the installment balance. The DOT further notified taxpayers that the SUW tax deadline in July and deadlines through the remainder of the year will proceed as normally scheduled. More information here.
May 26: The Michigan Department of Treasury May 26 announced a waiver of penalty and interest for the late payment and filing of sales, use and withholding taxes monthly or quarterly returns due May 20 through June 22 due to COVID-19 for individual income, corporate income, and sales and use tax purposes. The waiver extends through June 22, and applies to any payment or return for which penalty and interest were previously waived through May 20. This includes any monthly or quarterly payments or returns originally due on either March 20 or April 20. Taxpayers are encouraged to remit tax and file returns as of the original due date. The waiver isn’t available for accelerated sales, use, or withholding tax filers. More information here.
May 1: The Michigan Department of Treasury has announced that 2019 City of Detroit Income Tax Returns are now due July 15, 2020. More information here.
April 17: The Michigan Department of Treasury issued additional taxpayer guidance regarding new state income tax return filing and payment deadlines, income tax extensions, and estimated tax payments due to the COVID-19 pandemic. The guidance explains a March 27 executive order that includes: 1) a deadline extension for individual income and trust income tax returns and payments due on April 15 through July 15; 2) a deadline extension for corporate income tax annual returns due on April 30 through July 31; 3) a penalty and interest waiver until the new deadlines in July; 4) an option for individual and corporate income taxpayer to request a further extension subject to certain conditions; and 5) an extension of the second quarter estimated tax deadline through July 15. The guidance also encouraged taxpayers to file their state income tax returns to receive their refunds. More information here and here.
April 14: Business taxpayers scheduled to make sales, use and withholding tax payments for March and April or for the first quarter of 2020 can postpone filing and payment requirements until May 20, 2020. The state Treasury Department will waive all penalties and interest. However, Business taxpayers are encouraged to file sales, use and withholding tax returns and pay taxes owed as of the original due date if able to do so. More information here.
April 2: The State of Michigan extended the first quarter 2020 estimated income tax payments due on April 15, 2020 to July 15, 2020 or April 30, 2020 to July 31, 2020. However, the Second quarter estimated tax payments deadlines was not extended and are still due on the original due date. More info here.
March 27: The State of Michigan has temporarily suspended so as to extend the deadline for all taxpayers required to file an annual state and city income tax returns and payments in April 2020, as follows:
- Any annual state and city income tax returns and payments otherwise due on April 15, 2020 will instead be due on July 15, 2020.
- Any annual state and city income tax returns and payments otherwise due on April 30, 2020 will instead be due on July 31, 2020.
The State also extended until July 15, 2020 the deadline for all taxpayers required to pay estimated state and city income taxes that would otherwise be due on April 15, 2020.
The State temporarily suspended penalties and interest for failure to file a state and city income tax return or failure to pay state and city income taxes are aligned with the extensions. Any applicable penalties and interest will not begin to accrue until July 16, 2020 for any remaining unpaid balances due on July 15, 2020, and will not begin to accrue until August 1, 2020 for any remaining unpaid balances due on July 31, 2020
The extensions in this order are automatic. Taxpayers do not need to file any additional forms or call the Michigan Department of Treasury to qualify. More info here.
March 17: For sales, use, and withholding tax, Governor Whitmer granted a 30-day waiver for penalty and interest only for sales, use and withholding payment tax returns due March 20, 2020. Returns must be filed with payment by April 20, 2020. More info here.
Minnesota (Deadline: July 15)
July 17: The Minnesota Department of Revenue issued guidance on COVID-19 related penalty abatements. Taxpayers can request the DOR to abate late-payment or late-filing penalties or interest if they have a reasonable cause or are negatively affected by the COVID-19 pandemic.
May 22: The Minnesota Department of Revenue issued guidance stating that no action was taken during the 2020 legislative session in response to the federal COVID-19 changes. The Department also announced that it is working to adjust Minnesota tax forms to reflect the impact of the CARES Act and FFCRA. More information here.
April 14: The Minnesota Department of Revenue issued information on the abatement of late-payment and filing penalties for corporate income, individual income, trust income, sales and use, excise, property, and estate tax purposes. An abatement is a cancellation of a penalty or interest on a penalty. Taxpayers may request the abatement if they were affected by the COVID-19 pandemic. The DOR provided: 1) a list of circumstances to support an abatement request; 2) conditions and procedures for the abatement; 3) a table to determine where the abatement request should be sent depending on tax type; and 4) information on abatement request processing procedures and probable outcomes. More information here.
April 9: The Minnesota Department of Revenue updated to provide additional grace period for sales and use tax for identified businesses as follows: (1) identified businesses with a monthly sales and use tax payment due March 20, 2020 will now have until May 20, 2020 to make that payment; (2) identified businesses with a monthly or quarterly sales and use tax payment due April 20, 2020 will have until May 20, 2020 to make that payment (previously, the Department allowed identified businesses with a monthly sales and use tax payment due March 20, 2020, a 30-day extension to make that payment). During this time, the Department will not assess penalties or interest. These businesses should still file their returns by the due dates but do not have to make payments until May 20, 2020. There is no grace period to make the Sales and Use Tax payment for April Sales and Use Tax—the payment and the return will remain due on May 20, 2020. Identified businesses can request additional relief from penalty and interest for reasonable cause after April 20 for reasonable cause, including emergency declarations by the president and governor due to COVID-19. More info here.
March 24: Individual Income taxes filing and payment deadline automatically extended from April 15 to July 15.
March 13: For sales/use tax, Minnesota Department of Revenue is granting a 30-day Sales and Use Tax grace period for businesses identified in Executive Order 20-04. During this time the department will not assess penalties or interest. More information can be found here.
Identified businesses with a monthly Sales and Use Tax payment due March 20, 2020, have until April 20 to make that payment. These businesses should still file their return by March 20. At this time, this grace period for penalty and interest is only for monthly filers and only for the March 20 payment. Businesses can request additional relief from penalty and interest for reasonable cause after April 20.
Mississippi (Deadline: May 15)
July 7: The Mississippi Governor signed a law revising certain provisions on tax credits and exemptions for individual income, corporate income, sales and use, and property tax purposes. More info here.
June 30: Mississippi enacted H.B. 1748 which excludes from gross income any amounts received as loans, advances, or grants under the CARES Act and amounts received as payments from the Mississippi COVID-19 Relief Payment Fund. More info here.
May 29: The Mississippi Legislature created relief fund payment that will be sent to all qualifying small businesses. The $2,000 payment will be issued to eligible business based on tax return filed. According to Department of Revenue guidelines, no action is required by taxpayers. In addition to the relief payments, the Mississippi Development Authority has a program to allow up to $25,000 in grants based on a business’s number of employees. More info here.
May 8: Mississippi has extended the due date for filing income tax returns and making first quarter and second quarter estimated payments to July 15, 2020. This extension applies to Individual Income Tax returns, Corporate Income and Franchise Tax returns, and Fiduciary Income Tax returns. Originally, the extension was moved from April 15 to May 15. More info here.
March 26: The Commissioner has the authority, by statute, to extend all sales/ use and local tax levies by only one month without requiring the imposition of interest. As of this time, the State has not extended the time to file returns. However, the State will delay the imposition of interest and penalty on any unpaid tax balance for the period covered by the presidentially declared national emergency. More info here.
March 24: Individual and Corporate Income Tax deadline to pay and file returns is extended to May 15. Included in the extension is first quarter extension payments are also extended to May 15. The extension does not apply to sales, use or any other types of taxes which should be filed and paid on the normal due dates. Withholding tax payments for the month of April are extended until May 15, 2020. More info here.
Missouri (Deadline: July 15)
April 14: For partnership income tax returns, the Missouri Department of Revenue extended an automatic deadline to file Missouri Partnership Return from April 15 to July 15. More information here.
March 21: For corporate income tax, Income tax return and payment deadline has been extended from April 15, 2020, to 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.
This relief for individuals and corporations will also include estimated tax payments for tax year 2020 that are due on April 15, 2020.
Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020. Individuals and corporations that file their return or request an extension of time to file by July 15, 2020, will automatically avoid interest and penalties on the tax paid by July 15.
More information can be found here.
Montana (Deadline: July 15)
March 20: The Montana Governor extended the payment and filing deadlines for 2019 individual income taxpayers to July 15 in accordance with the new federal filing deadline. The corporate tax return due date of May 15 is not referenced in the governor’s pronouncement. The Department will be lenient in waiving penalties and interest associated with late tax payments and the department will work with taxpayers on a case-by-case basis. More information here.
March 23: The tax filing deadline will automatically be extended to July 15, 2020 for state income tax payments and estimated payments that were originally due on April 15, 2020. Nebraskans who can pay earlier are encouraged to do so to help the State manage its cash flow.
For Nebraskans affected by the COVID-19 pandemic in ways that impair their ability to comply with their state tax obligations for taxes administered by the Nebraska Department of Revenue, the Tax Commissioner may grant penalty or interest relief depending on individual circumstances. To request relief, please complete and mail a Request for Abatement of Penalty, Form 21, or Request for Abatement of Interest, Form 21A, with an explanation of how you were impacted. More information here.
[ No specific guidance at this time. Stay tuned for updates.]
March 23: New Hampshire has not extended the deadline to file or pay the Business Tax (Business Profits Tax and Business Enterprise Tax), Interest & Dividends Tax, Meals & Rentals Tax, or any other tax.
Tax Year 2019 Business Tax and Interest & Dividends Tax Returns are due on April 15, 2020. Taxpayers who have paid their tax in full by the return due date are entitled to an automatic 7-month extension of the time to file your New Hampshire Business Tax or Interest & Dividends Tax return. No extension form is required.
First quarter estimate payments for calendar year Business Tax and Interest & Dividends taxpayers are also due on April 15, 2020.
Meals & Rentals Tax returns and payments for the month of March are also due on April 15, 2020. More information here.
July 1: The New Jersey Economic Development Authority announced that it extended the deadline to apply for the state’s 2020 Technology Business Tax Certificate Transfer Program, also known as the Net Operating Loss Program, to Sept. 30 for technology and life sciences companies due to the COVID-19 outbreak. More information here
June 5: The New Jersey Division of Taxation issued a reminder that 2nd quarter estimated tax payments are still due on June 15, 2020, for income tax and corporation business tax taxpayers. Only estimated payments originally due on April 15, 2020 have been extended to July 15, 2020. More information here.
April 14: The New Jersey Division of Taxation extended the 2019 corporation business tax returns for certain fiscal year filers. Taxpayers filing corporate income tax return forms CBT-100, CBT-100U, BFC-1, and CBT-100S with accounting periods ending between July 31, 2019, and Nov. 30, 2019, were granted an automatic extension to file their tax returns by April 15. The DOT provided that: 1) if taxpayers submit an application for further extension of time to file, the due dates would be May 15, June 15, July 15, Aug. 15, and Sept. 15; 2) estimated payments with an original due date of April 15 are extended to July 15 in order to maintain consistency with the federal tax extensions; and 3) the extension applies only to the return filings and doesn’t extend the time to make all required payments except for estimated tax payments. More information here.
April 1: In order to maintain consistency with the federal income tax extension, the Governor, Senate President and Assembly Speaker announced they will work to extend the due date to file and make payments for these taxes until July 15th. More information to come.
March 18: New Jersey passed a bill to allow the state to align with federal directive that will allow for delayed payments.
May 29: The New Mexico Department of Revenue announced that it will extend some of the collections modifications that it implemented due to COVID-19. New liens, seizures, and injunctions are now on hold through June 30, among other actions. More info here.
March 30: The New Mexico Taxation and Revenue Department (TRD) announced that it is modifying its compliance enforcement procedures due to the COVID-19 pandemic, for corporate income, individual income, trust income, sales and use, property, and excise tax purposes. The announcement includes that: 1) new liens, seizures, injunctions, and other severe collection activities will cease for 90 days; 2) a program that automatically garnishes state tax refunds for payment of federal tax debts is suspended; 3) TRD staff is prioritizing review and approval of refund requests, business credits, and tax abatements; 4) managed audits will be offered to potentially noncompliant taxpayers, which can result in a 180-day waiver of penalties and interest; and 5) taxpayers undergoing audit can request a 60-stay suspension or a waiver for more time to produce records. More info here.
March 11: For income and withholding taxes, tax returns and payments due between April 15, 2020 and July 15, 2020 may be submitted without penalty no later than July 15, 2020. Although TRD will not impose penalty if a taxpayer complies with the extensions set forth above, interest is imposed from the original statutory date tax is due because TRD has no authority to waive interest pursuant to Section 7-1-13 NMSA 1978. More info here.
New York State
June 2: The New York Governor issued an executive order continuing the temporary suspension and modification of laws due to COVID-19 for property tax purposes. The order extends the period for paying taxes without interest or penalties by 21 days in certain localities that have requested an extension. More info here.
March 7: For sales/use tax, New York taxpayers who failed to file and pay their sales tax return due on March 20, 2020 will not face penalties or interest if they did not make the payment. Affected taxpayers will need to submit a Request Relief here. Returns must be filed, and the amount due must be paid within 60 days of the due date for this relief to apply.
New York City
May 22: The New York City Department of Finance announced a waiver of penalties for DOF-administered business and excise taxes due between April 26, 2020, and June 25, 2020, provided the taxes are filed and paid by July 15, 2020. This is in addition to the earlier waiver of penalties granted for DOF administered business and excise taxes due between March 16, 2020, and April 25, 2020. More info here.
March 19: Waive penalties for late filing, late payment and underpayment penalties for business and excise taxes originally due between 3/16/20 and 4/25/20. Taxpayers can request a waiver of penalties on late filed extension or return or separate request by following this link.Interest will not be waived from the original due date.
North Carolina (Deadline April 15)
July 20: Unemployment – The North Carolina Division of Employment Security (DES) updated its website to show additional information on the employer state unemployment insurance (SUI) tax credit to be applied to the second-quarter 2020 (due July 31, 2020). According to the website, employers do not need to do anything to receive this credit other than to file their first-quarter 2020 SUI tax return. Any payments made for the first-quarter 2020 will automatically be applied to SUI contributions due for the second-quarter 2020.
In accordance with Governor Cooper’s Executive Order No. 118, the Department of Commerce Division of Employment Security has been directed not to charge employers’ accounts for benefits paid to individuals for reasons related to COVID-19. Employers responding to requests for separation information should indicate that the separation was due to COVID-19. If the separation reason on a claim is not due to COVID-19, the employer may be charged. More information here.
Income Tax: The North Carolina Department of Revenue issued a notice explaining the decoupling of state law from certain federal tax provisions in the Further Consolidated Appropriations Act and Coronavirus Aid, Relief, and Economic Security Act. More info here.
June 30: The North Carolina Governor signed a law decoupling from various provisions of the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act and making other tax changes for individual income, corporate income, sales and use, excise, and trust income tax purposes. The law includes measures: 1) decoupling from a temporary increase of the federal tax code limit on deductions for business interest payments to 50 percent from 30 percent of adjusted taxable income; 2) reducing the threshold for the medical expense deduction to 7.5 percent from 10 percent; 3) decoupling from additional CARES Act modifications to limits on charitable contributions, net operating loss carryback, and loan forgiveness; 3) clarifying that the marketplace collection threshold of $100,000 or 200 transactions a year only applies to remote businesses; and 4) deleting the 2 percent apportionment fraction limitation for a wholesale content distributor. More info here.
May 4: The North Carolina enacted S.B. 704 which will not allow the Department of Revenue to waive interest from April 15, 2020 through July 15, 2020 on underpayments of individual income, corporate income, and franchise tax on tax returns due to be filed (including fiscal year tax returns) between April 15, 2020, through July 15, 2020. The relief also applies to estimated income tax payments due between the same dates.
In addition to waiving interest, S.B. 704 allows North Carolina employers will take a credit equivalent to their unemployment insurance fund contributions for 2020. More info here.
March 31: The North Carolina Department of Revenue (DOR) announced an expansion of late action tax penalty relief for failure to obtain a license, file a return, or pay a tax for taxpayers affected by the COVID-19 pandemic. The expanded relief applies from March 15 through July 15 to income, franchise, withholding, sales and use, and to various taxes administered by the Excise Tax Division. More info here.
March 20: For income/franchise taxes – Individual income, corporate income, and franchise taxes filing deadlines have been extended to July 15, 2020. Penalties will not be charged for those filing and paying their taxes after April 15, 2020, as long all filings and payments have been made before the updated July 15, 2020 deadline.
However, the department cannot offer relief from interest charged to filings after April 15th. Unless state law is changed, tax payments received after April 15 will be charged accruing interest over the period from April 15 until the date of payment. More info here.
March 19: Following IRS extension of payments but filing deadline remains 4/15/20. Look for further updates now that the filing deadline has been extended. More info here.
March 17: North Carolina will waive penalties for taxpayers for the following tax related activities:
- Failure to obtain a license
- Failure to file a return
- Failure to pay tax when due
- Penalties regarding informational returns (Example: “Zero” returns)
This waiver period is for any taxes due (or tax obligations) between March 15, 2020 and March 31, 2020. Penalties will be waived as long as the tax is filed by April 15, 2020. More information can be found here.
March 20: For income tax, Individuals or businesses who are unable to file an income tax return or pay the tax by the April 15th deadline, can file and make payment through July 15, 2020, without penalty and interest. More information here.
July 2: In Executive Order 2020-26D, Ohio Governor Mike DeWine has directed that for the period the state receives full reimbursement from the U.S. Department of Labor, as provided under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, no participating employers will be charged for unemployment insurance (UI) benefits that are paid under Ohio’s SharedWork program (also known as workshare or short-term compensation). More information here.
Oklahoma (Deadline: July 15)
March 23: For personal and corporate income taxes, Oklahoma Tax Commission (OTC) is extending the 2019 Oklahoma income tax return due date from April 15 to July 15, 2020. This is applicable to income tax due from Tax Year 2019 and the first quarter payment for Tax Year 2020, both of which would normally be due on April 15, 2020. More information here.
Pennsylvania State (Deadline: July 15)
July 23: The Pennsylvania Department of Revenue released information about hazard pay, which is taxable compensation for individual income tax purposes. The Governor announced the availability of $50 million in grant funding to help employers provide hazard pay to employees in life-sustaining occupations during the COVID-19 pandemic. Hazard pay is intended to keep front-line employees working in vital industry sectors across the state. The additional pay to employees is taxable as compensation for personal income tax. For personal income tax purposes, the grant funding is not income to the employer. Even though the grant funding is not taxable income, the employer may still take a business expense deduction for grant funding used to pay its employees hazard pay. For employers subject to the corporate income tax, the tax treatment at the federal level will flow into the state base. More information here.
July 2: The Pennsylvania Department of Revenue announced that businesses required to make accelerated sales and use tax prepayments must resume the prepayments by July 20. More information here.
April 14: The Pennsylvania Department of Revenue is waiving the sales and use tax prepayment requirement in April, May, and June to help business owners with cash flow during the COVID-19 pandemic. The DOR explained: 1) businesses that collect tax won’t have to make accelerated sales tax prepayments over the next three months and won’t be charged penalties for missing the monthly prepayment deadlines; 2) businesses only need to remit the tax that they collected during the prior month; and 3) the due dates to remit sales tax will be April 20, May 20, and June 22, which follows the standard due dates for monthly filers who have no prepayment requirement. The DOR encourages all businesses to remit payments online using the DOR’s online tax system. More information here.
March 21: For personal income tax, The Department of Revenue today announced the deadline for taxpayers to file their 2019 Pennsylvania personal income tax returns is extended to July 15, 2020. This means taxpayers will have an additional 90 days to file from the original deadline of April 15. Penalties and interest will also be waived on 2019 personal income tax payments through the new deadline of July 15, 2020. This extension applies to both final 2019 tax returns and payments, and estimated payments for the first and second quarters of 2020. More info here.
For Accelerated Sales Tax (AST) prepayments, the Department of Revenue is waiving penalties for businesses that are required to make Accelerated Sales Tax (AST) prepayments by the deadline of Friday, March 20. Additionally, for April sales tax payments, the department is waiving the AST prepayment requirement and asking businesses to simply remit the sales tax that they have collected in March.
April 22: The City of Philadelphia Department of Revenue updated Business Income and Receipts Tax (BIRT) and Net Profits Tax (NPT) nexus and apportionment policies temporarily due to COVID-19 for corporate income tax purposes. The updates include: 1) the DOR will waive the established legal nexus threshold, which considers the presence of employees working temporarily from home within the city as establishing nexus for out-of-Philadelphia businesses; 2) services that had been performed within the city by non-resident employees who are now working from home are deemed to be performed within the city for sourcing BIRT and NPT receipts; and 3) receipts from city resident employees’ services temporarily performed at their homes won’t be sourced to the city for BIRT and NPT purposes. More info here.
April 14: The City of Philadelphia Department of Revenue rescheduled Business Income and Receipts Tax (BIRT) and Net Profits Tax (NPT) payments for corporate income tax purposes. In response to COVID-19, the DOR has granted extensions to businesses for filing and payments until July 15 for the BIRT and NPT. The extension policy: 1) includes estimated payments; 2) requires no additional action from businesses; and 3) extends the filing and payment of BIRT and NPT to July 15 to all taxpayers, whether or not taxpayer qualifies for the federal relief, such as fiscal year filers and partnerships. Payments received after July 15 will accrue interest and penalty from April 15. More info here.
April 6: The City of Philadelphia Department of Revenue (DOR) issued information on rescheduling Business Income and Receipts Tax and Net Profits Tax payments for corporate income tax purposes. Taxpayers and tax preparers who previously scheduled payments through Modern e-Filing software can reschedule the payments to any date no later than July 15. The request for the rescheduling of payments must be submitted by April 10. More info here.
July 3: Rhode Island Governor Gina Raimondo’s recently issued Executive Order 20-52 extends to August 2, 2020 a provision under Executive Order 20-19 that provides COVID-19 unemployment insurance (UI) benefits won’t be charged to employer UI accounts. More info here.
May 21: The Rhode Island Division of Taxation issued an advisory announcing that estimated payments of Rhode Island personal income tax and estimated payments of Rhode Island business tax that would normally be due on June 15, 2020, are postponed to July 15, 2020. More info here.
March 20: For income tax, the deadline for certain tax filings and tax payments, the Division of Taxation will mirror the federal extensions and is awaiting the issuance of written guidance from the Internal Revenue Service. The Division intends to post further guidance as soon as possible.
For sales tax, meals and beverage taxes, the Division did not extend the March Sales tax filing and payment deadline as these amounts represent taxes paid in February 2020. More information here.
South Carolina (Deadline: July 15)
April 13: The South Carolina Department of Revenue expanded tax relief to July 15 due to COVID-19. The July 15 extension applies to: 1) all individual income, corporate income, franchise, and trust income tax and corporate license fee filing and payment deadline between April 1 and July 15; 2) quarterly estimated tax payments due on or after April 1 and before July 15; and 3) refund claims that were due between April 1 and July 15. Taxpayers who need additional time to file beyond July 15 may file an appropriate form by July 15 to obtain an extension. The extension won’t extend the time to pay the tax beyond July 15. The DOR clarified that sales and use, property, and excise tax returns and payments due between April 1 and June 1 remain due June 1. More info here.
March 20: For Income Tax, The State extended the due date for Income Tax returns and payments originally due April 15, 2020 to July 15, 2020 to conform with the federal income tax deadline. Other State taxes will remain delayed until June 1st. More information here.
March 17: For sales/use, withholding, and income taxes, Tax returns and payments due April 1 – June 1 will now be due June 1, 2020. Penalty and interest will not be charged if payment is made by June 1. The SCDOR is automatically applying this tax relief for all applicable returns and payments so no additional action is needed. More information can be found here.
April 1: The South Dakota Department of Revenue (DOR) issued frequently asked questions (FAQs) related to the COVID-19 pandemic. Currently, all state tax deadlines remain April 15, 2020 excluding Bank Franchise Tax which was extended to July 30, 2020. More information here.
March 30: The State exempts employers from penalties if unable to file state unemployment insurance (SUI) tax returns or timely pay the associated contributions due to a temporary business shutdown or reduction in force as a result of COVID-19. The legislation waives the $25 per month penalty assessed for both a late payment and a late return filing. The legislation, however, does not relieve the employer of interest on the late payment. More information here.
Tennessee (Deadline: July 15)
June 2: Tennessee has announced a new relief program for Tennessee businesses affected by the COVID-19 pandemic. The Tennessee Business Relief Program will direct approximately $200 million in federal Coronavirus Relief Funds through the Department of Revenue directly to small businesses that qualify. More information here.
March 31: Franchise and Excise Tax Returns – Tax returns and payments originally due April 15, 2020 have been extended to July 15, 2020. The extension includes any quarterly estimated payments. The sixth month extension date for the calendar year 2019 remains unchanged. More information here.
Business Tax – The Tennessee Department of Revenue has extended the filing deadline for Business Tax returns originally due April 15, 2020 to June 15, 2020. The Business Tax is a tax on gross receipts and applies to most businesses that sell goods or services. More information here. General information here.
March 20: For Franchise and Excise Taxes, the State has extended the due date for filing and paying from April 15, 2020 to July 15, 2020. More information here.
Taxpayers will have until July 15, 2020 to file returns and make any payments (including quarterly estimated payments) originally due on April 15, 2020. Interest and late filing penalties will not be applied to returns filed and payments made on or before this extended due date. The October 15, 2020, six-month extension date for the calendar year 2019 return remains unchanged.
July 16: The Texas Comptroller released guidance regarding the deadline for filing a second extension request for mandatory electronic payers is Aug. 17. Entities that properly secure a second extension (after filing a first extension) will have until Jan. 15, 2021, to file their report (the due date is extended from Nov. 15 as a relief from the COVID-19 pandemic). More information here.
June 4: The Texas Comptroller of Public Accounts issued information on sales and use tax short-term payment agreements for businesses that are struggling to pay the full amount of tax they collected from their customers, as a result of the COVID-19 restrictions. More information here.
May 27: In the Texas Tax Policy News May Edition, the Comptroller addressed the taxability of COVID-19 surcharges assessed by businesses, saying that fees and surcharges charged by Texas businesses related to the COVID-19 pandemic are charges that businesses have chosen to pass along to recoup the higher costs of goods and services provided to their customers. For Texas sales tax purposes, additional fees and surcharges related to the selling price of a taxable item are considered part of the sales price and are subject to tax in the same manner as the item or service being sold. More information here.
April 28: The Texas Comptroller is requesting that businesses struggling to pay the sales taxes collected from their customers prior to April 1, 2020, as a result of COVID-19 restrictions, file the sales tax returns that were due on April 20, 2020, make a good faith partial payment, and contact the Enforcement hotline at 800-252-8880 to learn about options for remaining in compliance and avoiding interest and late fees on taxes due. More information here.
April 2: The Texas Workforce Commission (TWC) announced that the deadline for filing the first quarter 2020 state unemployment insurance (UI) contribution and wage report and pay the corresponding payment is extended to May 15, 2020. According to a TWC representative, the extension waives any penalties or interest for late filing and payment.
In fact, employers are asked to not start filing their first quarter returns until after April 15, 2020 to allow uninterrupted Internet access for individuals filing for UI benefits and to help ensure that employers have access to their online accounts. More information here.
March 24: For sales and use taxes, The State released a statement indicating they will not extend due dates. However, for businesses struggling to pay sales tax, the State is offering assistance in the form of short-term payment agreements and, in most instances, waivers of penalties and interest. Taxpayers will need to contact the Enforcement Hotline at 800-252-8880 to learn about the options for remaining in compliance and avoiding interest and late fees on taxes due. More information here.
April 22: The Utah Governor signed a law modifying corporate income, individual income, and trust income tax provisions. The law includes measures: 1) removing “including any extension” from a provision concerning the due date for an installment tax payment on deferred foreign income; 2) modifying corporate estimated income tax payment due dates; 3) providing that the day on which a corporation is required to make a state return is the day required to file a federal return; 4) clarifying that interest accrues from the day on which a return is due; and 5) clarifying that for a taxable year beginning on or after Jan. 1, 2019, but before Dec. 31, 2019, a taxpayer may receive an extension of time to file returns until the last day of the extension to file the federal return. More information here.
March 23: State announced it intends to follow federal government’s tax filing and payment actions in response. It is waiting to review the official instructions from the IRS to make certain they align properly with federal requirements. More information here.
Vermont (Deadline: July 15)
July 15: The Vermont Department of Taxes proposed a regulation on the allocation and apportionment of corporate income tax net income calculation effective for tax years beginning on and after Nov. 1. The proposal includes measures to: 1) state that when receipts from sales other than tangible personal property contribute to the sales factor, the method for calculating receipts must rely on the principle of market-based sourcing; 2) define terms, including billing address and business customer; 3) establish the rules of approximation for determining whether and to what extent the market for a sale other than the sale of tangible personal property is in the state; 4) specify general rules of licensing or leasing of intangible property; and 5) clarify the discretionary adjustment of the apportionment percentage. Comments on the proposed rule are due by Aug. 20. More info here.
May 19: The Vermont Department of Taxes announced that it will waive interest and penalties on estimated income tax payments originally due on June 15, 2020, that are paid by July 15, 2020. More information here.
March 23: Income tax filing due dates for the following taxes have been extended from April 15, 2020 to July 15, 2020: Personal income tax, Homestead Declaration and Property Tax Credit Claims, Corporate income tax, and Fiduciary income tax. Taxpayers can file and pay these taxes on or before July 15, 2020 without any penalty or interest. This includes any tax year 2020 estimated payments that were due for these taxes on April 15th, 2020.
For Meals and Rooms Tax and Sales and Use Tax, the Department will provide relief to businesses by foregoing any penalty or interest for those who are not able to meet the March 25 or April 25 deadlines. More information here.
April 27: The Virginia Department of Taxation announced an automatic waiver of interest for income and sales tax payments due to COVID-19. The waiver applies to individual income, corporate income, and trust income tax payments and estimated tax payments due between April 1 and June 1, payments associated with composite returns and an election to file on an extension, and sales and use tax payments made by April 20. The bulletin includes: 1) the waiver applies if the tax is fully paid by June 1; 2) for a taxpayer filing on extension, at least 90 percent of the total tax liability must be paid by June 1 to obtain the relief; 3) the extended due date for individual income and fiduciary income tax is Nov. 2 for taxpayers who file on a calendar year basis; and 4) the relief doesn’t apply to non-resident withholding tax. More info here.
March 19: For sales/use taxes, The Virginia Department of Revenue will consider sales tax filing and payment extensions for the February 2020 sales tax return due March 20, 2020. They caution that interest will accrue on payments made after the due date even if an extension is granted. More information can be found here.
March 20: Income tax payments due during the time period of April 1, 2020, to June 1, 2020, will now be due on June 1, 2020. This includes individual and corporate income taxes paid to Virginia Tax. All income tax filing deadlines remain the same, including the May 1, 2020 individual income tax filing due date. More information can be found here.
Late payment penalties will not be charged if payments are made by June 1, 2020. However, interest will still accrue, so if you can pay by the original filing due date, you should.
Washington, DC (Deadline: July 15)
July 24: The District of Columbia Office of Tax and Revenue issued frequently asked questions (FAQs) on sales and use tax in response to the COVID-19 pandemic. The FAQs provide information regarding: 1) the sales tax relief passed by the Council in response to the current public health crisis created by COVID-19; 2) the extension of due dates for sales tax payments; 3) the penalties and interest in case of non-payment of the tax by the due date; 4) the criteria for qualifying a taxpayer for tax relief; and 5) the requirement to file sales tax returns even if there were no sales for the month of April and May. More info here.
April 3: According to District tax officials, new teleworkers in DC working for companies that lacked physical presence before the Covid-19 pandemic won’t create nexus.
March 31: The District of Columbia Department of Employment Security states employers affected by COVID-19 and late in filing state unemployment insurance (SUI) tax returns, paying taxes and responding to requests for information regarding UI claims may receive a waiver of penalties. On a case-by-case basis, financial penalties assessed to delinquent employers may be waived, if the delays are a result of COVID-19. More info here.
March 24: Individual, fiduciary, partnership and franchise tax returns extended filing and payment deadline from April to July 15. Only includes 2019 annual income taxes and does not reference estimated tax payments. More info here.
March 23: The Office of Tax and Revenue (OTR) extended the deadline for individual and fiduciary income tax returns (D-40, D-41, and D-40B), partnership tax returns (D-65), and franchise tax returns (D-20, D-30) to July 15, 2020. The Office of Tax and Revenue (OTR) encourages taxpayers who are able to file their returns electronically to do so. More information here.
March 20: No specific tax relief discussed. More info here.
March 25: The deadline to file and pay 2019 annual income tax returns for individuals, trusts or estates, and corporations has been automatically extended from April 15, 2020, to July 15, 2020. Failure to pay any balance of tax due by July 15, 2020 will result in the accrual of penalties and interest beginning July 16, 2020. Included in the extension estimated tax payments for tax year 2020 that are due between April 15, 2020 and July 15, 2020 for individuals, trusts or estates, corporations, and pass-thru entities.
This relief does not apply to employer withholding tax returns and payments or to any other tax collected by the Tax Commissioner. More information here.
Wisconsin (Deadline: July 15)
April 20: The Wisconsin Department of Revenue has the authority to waive, on a case-by-case basis, any penalty or interest that accrues during the period covered by the public health emergency. Specifically, returns and payments for withholding tax, sales and use taxes, and excise taxes due between March 12 through May 11 may be extended to May 11. More info here.
March 27: The Wisconsin Department of Revenue announced small businesses can immediately request an extension until April 30, 2020 to file sales and use tax returns due March 31, 2020 and until June 1, 2020 for sales and use tax returns due April 30, 2020, in response to the COVID-19 pandemic.
In addition, the Department will not assess late filing fees or penalties if sales and use tax returns are filed by April 30 or June 1; 12% interest will accrue beginning on the due date, unless the legislature changes the law to allow the Department to waive interest. The Department will lower the interest rate from 18% to 12% on unpaid balances on sales and use tax returns due March 31 and April 30, 2020.
Taxpayers are directed to contact DORTOBReturnAdjustment@wisconsin.gov after they receive a bill to request a reduction of the interest rate.
Other steps the Department has taken to help challenges faced by small businesses include installment payment plans for amounts reported on returns but unpaid, relaxing collection activities on delinquent amounts due between now and July 15, 2020 (unless suspending the collection activity would compromise the state’s ability to collect the amount due), and delaying the start of most new audits. More info here.
March 25: The Wisconsin Department of Revenue has issued proposed guidance regarding sales and use taxes, motor fuel, alcohol, and tobacco products taxes, and withholding deposits returns and payment due dates. Taxpayers may request a one-month extension to file a by requesting an extension before the unextended due date of the return through My Tax Account or by emailing DORRegistration@wisconsin.gov.
The email request must include the taxpayer’s name, address, identification number, and the reporting period for which the extension is requested. However, there is no extension of time to pay taxes to the Department. Interest will be imposed during the one-month extension period at a rate of 1.0%.
The Wisconsin Department of Revenue has issued proposed guidance giving further clarity to corporate income tax and personal income tax return filing and payment due dates due to the COVID-19 pandemic. Wisconsin is following the extended due dates for filing 2019 income tax returns with a due date of April 15 are extended to July 15, 2020. Unpaid income and franchise tax originally due April 15, 2020, will not accrue interest or penalties until July 16, 2020. Returns due on any other date will accrue interest and/or penalties from the unextended due date of the return.
Underpayment interest will not apply to calendar-year 2019 income/franchise tax or 2019 pass-through withholding tax returns or returns with a due date of April 15, 2020. In addition, the first estimated income/franchise tax payment for 2020 that is due April 15, 2020 is extended to July 15, 2020. Underpayment interest will begin July 16, 2020 for this first estimated tax payment. More info here.
March 24: Automatic filing and payment extension to July 15 for all income tax and estimated tax payments that were originally due April 15. More info here.
[ No specific guidance at this time. Stay tuned for updates.]