|COVID-19 State and Local Tax Updates
||Brief Overview of Guidance Issued in Response to COVID-19
Order of the Commissioner of Revenue – extension of the filing and payment deadlines for State Income Tax, FIET and BPT: On March 13, 2020, Governor Ivey declared a state of emergency in response to COVID-19, thereby allowing the Department more flexibility in working with impacted taxpayers. In accordance with the Governor’s grant of emergency authority, the Commissioner of the Department of Revenue ordered the following:
“Any person with a state Individual Inocme Tax or Corporate Income Tax (collective State Income Tax) payment, a Financial Institution Excise Tax (FIET) payment, or a Business Privilege Tax (BPT) payment due on April 15, 2020, or a State Income Tax, FIET, or BPT return due April 15, 2020 is affected by the COVID-19 pandemic for purposes of the relief described in the Order (Affected Taxpayer). The term “person” includes any individual, association, estate, trust, partnership, corporation, or other entity of any kind, as provided in § 40-1-1(8), Code of Alabama 1975. For an Affected Taxpayer, the due date for filing State Income Tax, FIET, and BPT returns and making State Income Tax, FIET and BPT payments due on April 15, 2020 is automatically postponed to July 15, 2020. There is no limitation on the amount of the payment that may be postponed. The relief provided in this Order is available solely with respect to payments due on April 15, 2020 for State Income (including payments of tax on self-employment income) for an Affected Taxpayer’s 2019 taxable year, for estimated State Income Tax for an Affected Taxpayer’s 2020 taxable year, for FIET for an Affected Taxpayer’s 2020 Form Year, and for BPT for an Affected Taxpayer’s 2020 Form Year, and with respect to returns due by an Affected Taxpayer on April 15, 2020, for State Income Tax, FIET, and BPT.”
As a result of the postponement, the period beginning on April 15, 2020 and ending on July 15, 2020, will be disregarded in the calculation of any interest, penalty or addition to tax for failure to file State Income Tax, FIET and BPT returns or to pay the taxes postponed by the Order. Interest, penalties, and additions to tax with respect to such postponed Alabama tax filings and payments will begin to accrue on July 16, 2020.
On March 23, the Tax Commissioner issued a separate order that extended the March 15, 2020 deadline for pass-through entities required to file a composite income tax return and remit payments on behalf of its non-resident members affected by the COVID-19 pandemic, to July 15, 2020.
Late Payment Penalties Waived for Sales Tax Liabilities of Restaurants and Other Food Service Providers: Although the Alabama Department of Revenue’s website indicated that taxpayers registered as engaging in NAICS Sector 72 business activities were eventually added to the state’s sales tax waiver, the Commissioner’s Executive Order from March 17 only referenced retail businesses. On March 19, 2020, the Commissioner of the Alabama Department of Revenue issued a separate executive order ordering that “late payment penalties shall be waived for businesses who are unable to timely pay their February, March, and April 2020 state sales tax liabilities and who are currently registered with the Department as engaging in NAICS Sector 72 business activities. Businesses in NAICS Sector 72 include those preparing meals, snacks, and beverages for immediate consumption.” Late payment penalties for state sales tax liabilities for these taxpayers will be waived through June 1, 2020. (March 19, 2020)
The Department of Revenue’s website further states “[t]he Department is also waiving state late payment penalties for lodgings taxes. The relief applies to state sales and lodgings taxpayers who are unable to timely pay their February, March, and April 2020 sales and lodgings tax liabilities. This relief does not waive or extend normal filing requirements. Instead, these taxpayers may file their monthly sales and lodgings tax returns for the February, March, and April 2020 reporting periods without paying the state sales and lodgings tax reported as due. Late payment penalties will be waived for these taxpayers through June 1, 2020. Please note, this relief applies only to state sales and lodgings tax liabilities.”
Late Payment Penalties Waived for Small Retail Business Sales Tax Liabilities: Effective March 18, 2020, the Alabama Department of Revenue (DOR) is extending immediate relief to both small retail businesses whose monthly retail sales during the previous calendar year averaged $62,500 or less, and taxpayers currently registered with the DOR as engaging in NAICS Sector 72 business activities that are unable to timely pay their February, March and April 2020 sales tax liabilities. This relief does not waive or extend normal filing requirements. Instead, taxpayers may file their monthly sales tax returns for the February, March and April 2020 reporting periods without paying the state sales tax reported as due. Late payment penalties will be waived for these taxpayers through June 1, 2020.
The DOR stated that after the expiration of this temporary waiver, it will work with taxpayers that elected to use the waiver program to develop workable payment plans that will allow taxpayers to pay outstanding liabilities for February, March and April 2020 while navigating any other impacts of the Coronavirus (COVID-19) pandemic on their businesses.
This relief is automatic for small retailers and Sector 72 businesses who file their February, March and April 2020 state sales tax returns. Similar sales tax relief may be available on a case-by-case basis to other businesses significantly affected by COVID-19 and the preventative measures being taken to limit its spread in Alabama. These taxpayers may contact the DOR Sales and Use Division at +1 334 242 1490 to request relief.
Considering that this relief only applies to state sales and lodgings taxes, the Department has instructed taxpayers to contact non-state administered localities directly to see if they are offering similar relief. Contact for non-state administered localities is available here. Requests for relief for state-administered localities will be reviewed individually and can be submitted to email@example.com.
March 2020 Motor Vehicle Registrations and Property Tax Payments and Penalties Extension: Effective March 16, 2020, the Alabama DOR extended the March 2020 deadline for motor vehicle registration, renewal and property tax payment. Penalty charges associated with motor vehicle registrations and renewals extended through April 15, 2020, will not be assessed until April 16, 2020.
Temporary Suspension of IRP and IFTA Requirements: Effective March 16, 2020, the Alabama DOR announced that it will temporarily suspend requirements associated with the International Fuel Tax Agreement and International Registration Plan for any vehicle travelling through the state as part of COVID-19 relief efforts.
The Alabama DOR also indicated that it plans to mirror any return filing extensions issued by the Internal Revenue Service (IRS). Please monitor the state’s COVID-19 updates page for more information.
AZDOR Extends Income Tax Deadline to July 15, 2020: The Arizona Department of Revenue (ADOR) has announced it has moved the deadline for filing and paying state income taxes from April 15 to July 15, 2020 following direction today by Governor Doug Ducey. This is consistent with Treasury Secretary Steve Mnuchin’s announcement that the Internal Revenue Service (IRS) has moved the deadline for 2019 federal tax returns to July 15, 2020. The announcement by ADOR includes individual, corporate and fiduciary tax returns.
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.
Executive Order N-25-20: “In order to quickly provide relief from interest and penalties, the provisions of the Revenue and Taxation Code that apply to the taxes and fees administered by the Department of Tax and Fee Administration [CDTFA], requiring the filing of a statement under penalty of perjury setting forth the facts for a claim for relief, are suspended for a period of 60 days after the date of this Order for any individuals or businesses who are unable to file a timely tax return or make a timely payment as a result of complying with a state or local public health official’s imposition or recommendation of social distancing measures related to COVID-19.”
The CDTFA published a corresponding statement on its website indicating that sales tax relief may be available to taxpayers upon request. The CDTFA further indicated that it has the authority to grant return and payment extensions, to provide relief from penalties and interest, and to provide assistance related to refund claims. Taxpayers may request assistance by contacting the CDTFA in writing or via email. Requests for relief of interest and penalties must be made through the CDTFA’s online services portal.
Executive Order N-25-20: “The Franchise Tax Board, the Board of Equalization, the Department of Tax and Fee Administration, and the Office of Tax Appeals [OTA] shall use their administrative powers where appropriate to provide those individuals and businesses impacted by complying with a state or local public health official’s imposition or recommendation of social distancing measures related to COVID-19 with the extensions for filing, payments, audits, billing, notices, assessments, claims for refund, and relief from subsequent penalties and interest.” In response to this March 12, 2020, executive order, OTA issued Legal Notice 2020-01, indicating that it will grant an automatic 60-calendar-day extension of the deadline for appeals that have a briefing or other deadline that falls between March 1, 2020, and May 18, 2020.
FTB News Release: On March 13, 2020, the Franchise Tax Board (FTB) issued updates to the personal and corporate income tax deadlines for taxpayers affected by the COVID-19 pandemic. On March 18, FTB issued the following revised guidance: “FTB is postponing until July 15 the filing and payment deadlines for all individuals and business entities for:
- 2019 tax returns
- 2019 tax return payments
- 2020 1st and 2nd quarter estimate payments
- 2020 LLC taxes and fees
- 2020 Non-wage withholding payments.”
“The COVID-19 pandemic is disrupting life for people and businesses statewide,” said State Controller and FTB Chair Betty T. Yee. “We are further extending tax filing deadlines for all Californians to July 15. Hopefully, this small measure of relief will help allow people to focus on their health and safety during these challenging times.” To give taxpayers a deadline consistent with that of the IRS without the federal dollar limitations, FTB is following the federal relief described in Notice 2020-17. Since California conforms to the underlying code sections that grant tax postponements for emergencies, FTB is extending the relief to all California taxpayers. Taxpayers do not need to claim any special treatment or call FTB to qualify for this relief.
In line with Governor Newsom’s March 12 Executive Order, FTB previously extended the due dates for filing and payment for affected taxpayers until June 15, 2020, with the qualification that the deadlines may be extended further if the IRS grants a longer relief period, as it did on March 21, 2020. The IRS’ extension announcement supersedes the FTB’s March 13, 2020 extension announcement.
For more details regarding FTB COVID-19 tax relief, taxpayers can visit FTB’s website “and search COVID-19. If possible, taxpayers should continue to file tax returns on time to get their refunds timely, including claiming the Earned Income Tax Credit and Young Child Tax Credit. During this public health emergency, FTB continues to process tax returns, issue refunds, and provide phone and live chat service to taxpayers needing assistance.” (March 18, 2020)
California Employment Development Department: Emergency and Disaster Assistance for Employers: “Employers statewide directly affected by the new coronavirus (COVID-19) may request up to a 60-day extension of time from the EDD to file their state payroll reports and/or deposit payroll taxes without penalty or interest. This extension may be granted under Section 1111.5 of the California Unemployment Insurance Code (CUIC). A written request for extension must be received within 60 days from the original delinquent date of the payment or return.” (March 2020)
Public Hearing Regarding Proposed Amendments to Regulation 1503: On March 19, 2020, the CDTFA postponed the April 2, 2020, public hearing regarding proposed amendments to Regulation 1503, Hospitals and Other Medical Facilities, Institutions and Homes for the Care of Persons, and Regulation 1591, Medicines and Medical Devices. The hearing has not yet been rescheduled.
April 10 Property Tax Deadline: several county tax collectors have issued statements reminding taxpayers that the property tax installment due on April 10 must be timely paid. However, in some counties, taxpayers who are impacted by COVID-19 may request penalty relief beginning on April 11. Further, many county tax collectors are not accepting in-person payments due to concerns about the spread of COVID-19. For detailed information about a specific county, we recommend checking the county tax collector’s website. (Los Angeles County – Statement); (Orange County – Statement)
Extension of Time for Official Acts by County Assessors or County Boards of Equalization and Assessment Appeals Boards: In recognition of the measures implemented by Executive Order N-25-20, Revenue and Taxation Code section 155 and Property Tax Rule 1051 authorize the Board of Equalization (“Board”) to grant extensions of up to 30 days (40 days for a public calamity) to County Assessors and County Boards of Equalization to meet statutory or regulatory deadlines. County Assessors and County Boards of Equalization are required to request such an extension in writing. (March 16, 2020)
Revenue and Taxation Code Section 69.3 Ordinances (Intercounty Disaster Relief): As of March 17, 2020, David Yueng, Deputy Director of the Board of Equalization (“Board”) Property Tax Department issued the following letter to county assessors: “On March 12, 2019, the Yuba County Board of Supervisors adopted an ordinance implementing the intercounty disaster relief base year value transfer under Revenue and Taxation Code section 69.3 (Proposition 171). The ordinance went into effect on April 11, 2019. This ordinance allows the intercounty disaster relief base year value transfer to apply to replacement property purchased in Yuba County on or after October 20, 1991. As of March 17, 2020 the following 13 counties have ordinances implementing the disaster relief intercounty base year value transfer provisions of section 69.3:
Generally, section 69.3 allows a homeowner whose principal place of residence is substantially damaged or destroyed in a major disaster to transfer the adjusted base year value of the pre-damaged residence to a replacement residence of equal or lesser value that is purchased or constructed in another county, if that county has an ordinance implementing the provisions of section 69.3. The purchase or completion of construction must occur within three years after the date of damage or destruction of the original property.” (March 17, 2020)
|California – San Francisco
||On March 11, 2020, San Francisco Mayor London Breed announced measures to support small businesses in San Francisco that experience a slowdown in business as a result of COVID-19. These efforts include:
- Deferred Business Taxes for Small Businesses: For businesses with up to $10 million in gross receipts, the city is deferring until February 2021, with no interest or penalties, the payment of quarterly business taxes (including the Gross Receipts Tax, Payroll Expense Tax, Commercial Rents Tax and Homelessness Gross Receipts Tax) that would normally be due April 30, 2020. This deferment will provide immediate cash flow assistance to 8,050 small businesses.
- Deferred Business Licensing Fee: The city is deferring collection of annual small business license and permit fees that make up the Unified License Bill to June 30, 2020. This measure will support more than 10,000 businesses.
The City of San Francisco also launched a website with resources, contacts and updates for small businesses.
Colorado Income Tax Deadlines Extended: The income tax payment deadline has been extended for all Colorado taxpayers by 90 days until July 15, 2020. All income tax returns that were required to be filed by April 15, 2020 are granted a six-month extension, and are due on or before October 15, 2020. Please visit the Department’s website for additional information.
Update: The Colorado Department of Revenue closed all facilities to the public effective March 18, 2020, through April 18, 2020. All internal and online operations continue as normal.
|Colorado – Denver
Denver, CO – Penalty Waivers for Denver Businesses: The Denver Department of Finance has agreed to waive the 15% penalty for late payment of February and March sales, use and occupational privilege taxes due on March 20 and April 20, 2020. The City has indicated that “[t]he return must be filed and funds remitted within 30 days of the due date.” After the April 20 deadline, the Department of Finance indicated that it will evaluate extension of the waiver on a month-by-month basis.
Department Extends Filing and Payment Deadlines for Personal Income Tax Returns to July 15, 2020: the Connecticut Department of Revenue Services (DRS) is extending the filing and payment deadline for personal income tax returns 90 days, to July 15, 2020. The extension also applies to Connecticut estimated income tax payments for the first and second quarters of 2020.
This extension for Connecticut personal income tax return filing and payment aligns with the US Treasury’s announcement earlier Friday, where it indicated federal income tax filings and payments would be extended until July 15, 2020.
Update: “Effective immediately, the filing deadlines for certain annual tax returns due on or after March 15, 2020, and before June 1, 2020, are extended by at least 30 days. In addition, the payments associated with these returns are also extended to the corresponding due date in June.
The impacted returns and the associated filing dates and payment deadlines are set forth below:
- 2019 Form CT-1065/CT-1120 SI Connecticut Pass-Though Entity Tax Return: Filing date extended to April 15, 2020; payment deadline extended to June 15, 2020
- 2019 Form CT-990T Connecticut Unrelated Business Income Tax Return: Filing date extended to June 15, 2020; payment deadline extended to June 15, 2020
- 2019 Form CT-1120 and CT-1120CU Connecticut Corporation Business Return: Filing date extended to June 15, 2020; payment deadline extended to June 15, 2020
Individuals in the process of preparing their Connecticut income tax (Form CT-1040) returns due April 15, should be advised that DRS will adjust due dates for filing and payment of state income taxes to align with any specific, actionable announcement from the Internal Revenue Service regarding due dates for the filing and payment of federal income taxes. Taxpayers are encouraged to visit the DRS website for updates.” (March 16, 2020)
Update on DRS Walk-In Services: The Connecticut Department of Revenue Services (DRS) has suspended walk-in services to the public at its four branch offices. All business with the DRS can be conducted electronically, by telephone or by written correspondence. (March 17, 2020)
Delaware Public Service offices closed to the public: All taxpayers are asked to utilize the Division of Revenue’s online services at Revenue.Delaware.gov to ensure that they remain compliant with all tax filing and payment obligations. If you are unable to find a solution through Revenue’s online services, please call our public service group at 302-577-8200, and we will provide you guidance.
Legislature: The Delaware General Assembly has postponed session (originally set for March 17–19, 2020). All Delaware state agencies remain open at this time.
|District of Columbia
COVID-19 Response Emergency Amendment Act of 2020: The Council of the District of Columbia signed into law Act 23-247 in response to the COVID-19 pandemic. The law offers the following taxpayer relief:
- Delays by roughly three months real property tax payments by hotels, and sales tax payments from all other businesses that collect sales tax. This is not an abatement of taxes but is essentially a short-term interest-free loan to businesses, totaling about $266 million.
The bill was enacted on March 17, 2020, and is currently set to expire on June 15, 2020.
On March 16, 2020, Governor Ron DeSantis announced that the Florida Department of Revenue will offer flexibility on the tax filing and payment deadlines for certain taxes, including corporate income taxes and sales taxes to help businesses adversely affected by COVID-19 response efforts. In addition, some corporate income tax payments can be deferred until the end of the fiscal year. Additional details have not yet been released.
COVID-19 Update: “The Florida Department of Revenue is monitoring developments pertaining to the novel coronavirus (COVID-19) and is following guidance from federal and state officials. We understand you may have some concerns and uncertainty pertaining to COVID-19 and are committed to being responsive to your needs. To that end, the Department has established a dedicated team to address tax-related issues pertaining to COVID-19 and has created an email address, COVID19TAXHELP@FloridaRevenue.com, where you can share your questions and concerns.” (March 18, 2020)
Georgia Department of Revenue Suspending In-Person Services: Due to concerns regarding COVID-19, DOR is temporarily suspending in-person services effective Monday, March 23, 2020. Taxpayers can conduct all business with the Department via online services, telephone or designated secure lockbox locations.
All Administrative Hearings Cancelled: “All administrative hearings before OSAH Judges have been cancelled for March 16 through March 31, 2020. These cancellations are for all hearing locations in every county of the State of Georgia. All hearings will be rescheduled. These cancellations are out of an abundance of caution and in the best interest of the health and safety of litigants and our Court’s staff, given the prevalence of COVID-19. For the latest updates, visit the home page of osah.ga.gov. For questions about specific cases, contact the Judge’s Assistant assigned to your case.” (March 16, 2020)
COVID-19 Update: “DOTAX is using caution to maintain Normal Operations to process returns, payments, and refunds and provide taxpayer services. Please help us protect community health by practicing social distancing. Our offices are CLOSED to the public. Please use secure web messaging on Hawaii Tax Online or call us at (808) 587-4242 if you have questions or need assistance.”
“Tax filing and payment deadlines have been maintained. Any returns or payments can be dropped off in the drop box outside the building. Individuals expecting refunds should file as soon as possible. Form N-11 (Hawaii Resident Income Tax Return) can be filed for free on Hawaii Tax Online.” (March 18, 2020)
Short-Term Relief from Penalties for Late Sales Tax Payments Due to COVID-19 Virus Outbreak: The Illinois Department of Revenue issued the following informational bulletin: In an effort to assist eating and drinking establishments affected by the COVID-19 outbreak, effective immediately, the Illinois Department of Revenue (IDOR) is waiving any penalty and interest that would have been imposed on late sales tax payments from qualified taxpayers.
Who is a qualified taxpayer eligible for relief? Taxpayers operating eating and drinking establishments that incurred a total sales tax liability of less than $75,000 in calendar year 2019 are eligible for relief from penalties and interest on late sales tax payments.
What are the reporting periods for which qualified taxpayers are allowed relief? Qualified taxpayers will not be charged penalties or interest on late payments for sales tax liabilities reported on Form ST-1, Sales and Use Tax and E911 Surcharge Return, that are due for the February, March and April 2020 reporting periods.
What must qualified taxpayers do to request relief? For most qualified taxpayers, IDOR will automatically waive penalties and interest. If you receive a notice from IDOR that imposes penalties and interest that you believe should have qualified for a waiver, you can respond to the notice to indicate that you believe you should have qualified for relief. IDOR will review the response and grant relief, if appropriate.
Qualified taxpayers are required to file Form ST-1 for each reporting period by their original due dates, even if they are unable to make a payment. To qualify for relief, taxpayers must pay their liabilities due in March, April and May 2020 on four dates starting on May 20, 2020.
What are the four dates when my payments are due?
The required payment schedule for liabilities reported on Form ST-1 is as follows:
- One quarter of the liability for the February, March and April 2020 reporting periods is due May 20, 2020.
- One quarter of the liability for the February, March and April 2020 reporting periods is due June 22, 2020.
- One quarter of the liability for the February, March and April 2020 reporting periods is due July 20, 2020.
- One quarter of the liability for the February, March and April 2020 reporting periods is due August 20, 2020.
(March 18, 2020)
Illinois Department of Revenue Offices Closed to the Public: Effective March 22, 2020.
|Illinois – Chicago
Chicago – Extended Due Dates for Certain City Taxes: To provide relief for businesses over the coming weeks, the City is extending due dates for tax payments until April 30, 2020 for the following City taxes:
- Bottled Water tax
- Checkout Bag tax
- Amusement tax
- Hotel Accommodation tax
- Restaurant tax
- Parking tax
DOR Announces Filing and Payment Extensions: On March 19, 2020, Governor Eric Holcomb announced that the Indiana Department of Revenue (DOR) is extending certain filing and payment deadlines to align with the IRS and to support Indiana taxpayers during the COVID-19 health crisis. “Since COVID-19 is impacting so many, in addition to the payment extensions announcement by the IRS, we are also extending the associated Indiana tax return filing deadlines.
Individual tax returns and payments, along with estimated payments originally due by April 15, 2020 are now due on or before July 15, 2020. Returns included are the IT-40, IT-40PNR, IT-40RNR, IT-40ES, ES-40 and SC-40.
Corporate tax returns and payments, along with estimated payments originally due by April 15 or April 20 are now due on or before July 15, 2020. Those originally due on May 15, 2020, are now due on August 17, 2020. Returns included are the IT-20, IT-41, IT-65, IT-20S, FIT-20, URT-1, IT-6, FT-QP and URT-Q.
All other tax return filings and payment due dates remain unchanged.
If Hoosiers need additional time to file, they can request an extension. Instructions for those extensions can be found on DOR’s website. If an individual requests a federal extension, Indiana automatically extends the state deadline and there is no need to file anything additional.”
DOR Temporarily Suspends In-Person Services: “In concert with Governor Eric Holcomb’s guidance and with the utmost concern for the health and safety of Hoosiers and DOR employees, all DOR in-person customer services will be temporarily suspended beginning at 4:30 p.m. on Tuesday, March 17, 2020. DOR team members are continuing to provide customer service by phone and email, Monday through Friday, 8 a.m. – 4:30 p.m., local time. Additionally, customers can visit DOR’s website at dor.in.gov/4331.htm to take advantage of online services available. DOR continues to monitor the Internal Revenue Service (IRS) regarding possible changes to filing and payment due dates, and is prepared to follow suit. Those decisions will be shared as soon as they are made. Any changes to this guidance, additional modifications to normal operations or changes to tax filing and payment deadlines will be posted on DOR’s website, as well as DOR’s social media accounts.” (March 17, 2020)
Iowa to extend filing and payment deadline for income tax and other tax types: Effective March 19, 2020, the Iowa Department of Revenue extended the filing and payment deadline for several tax types, including income tax. The changes are a result of an order signed by Director of Revenue Kraig Paulsen.
The order extends filing and payment deadlines for income, franchise, and moneys and credits taxes with a due date on or after March 19, 2020, and before July 31, 2020, to a new deadline of July 31, 2020. Specifically, the order includes:
- 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
The extension applies to the tax returns listed above and any tax due associated with those returns if the due date is on or after March 19, 2020, but before July 31, 2020. The extension does not apply to estimated tax payments. The deadline extension applies to Iowa residents and other taxpayers doing business in Iowa who are required to file the Iowa returns listed above.
No late-filing or underpayment penalties will be due for qualifying taxpayers who comply with the extended filing and payment deadlines in this order. Interest on unpaid taxes covered by this order will be due beginning on August 1, 2020.
Iowa to extend income tax withholding deposit due date: The Iowa Department of Revenue extended one income tax withholding deposit due date for certain taxpayers. The extension is the result of an order signed by Director Paulsen. The order extends the income tax withholding deposit due date for the period ending March 15, 2020, from March 25, 2020, to the new deposit due date April 10, 2020. It applies to Iowa residents or other taxpayers doing business in Iowa who remit income tax withholding on a semi-monthly basis.
No late-filing or underpayment penalties will be due for qualifying taxpayers who comply with the extended filing and payment deadlines in this order. Interest on unpaid taxes covered by this order will be due beginning on April 11, 2020. (March 19, 2020)
COVID-19 Update: “In response to COVID-19, the Iowa Department of Revenue is changing the way it helps taxpayers in need of assistance. Taxpayers with questions should call the taxpayer services phone line at 515-281-3114 or 1-800-367-3388 or email the Department at firstname.lastname@example.org, rather than visiting the Department in the Hoover Building at the Iowa Capitol Complex in Des Moines.” (March 18, 2020)
COVID-19 Update: “The Kentucky Department of Revenue (DOR) will not receive walk-in customers for tax filing assistance, collections cases, or other tax-related issues due to concerns surrounding the 2019 novel coronavirus (COVID-19). Previously scheduled appointments will be cancelled and rescheduled if possible. DOR representatives are available by phone or email.” (March 16, 2020)
Department of Revenue extends state sales tax deadline: “Businesses have additional time to file returns due this month for sales and excise taxes collected by the Louisiana Department of Revenue (“LDR”). The extended deadline is May 20, 2020, for applicable returns and payments that were due Friday, March 20.
The extension applies to sales, beer excise and wine excise tax returns and payments for the February 2020 tax period. By state law, sales and excise tax returns for any monthly tax period are generally due on the 20th day of the following month. However, LDR is extending this month’s deadline due to the public health emergency caused by the coronavirus pandemic. This is an automatic extension and no extension request is necessary.
LDR will waive penalties and interest for applicable returns and payments received by the extended May 20 deadline.
For more information, including a full list of all taxes eligible for this relief, read Revenue Information Bulletin 20-008.” (March 19, 2020)
Legislature: The Louisiana legislature has adjourned until March 31, 2020, to limit the spread of COVID-19.
|Louisiana – New Orleans
COVID-19 Update: In response to the COVID-19 outbreak, Mayor LaToya Cantrell announced on March 17 that City of New Orleans is waiving fines, fees, interest and penalties on sales tax payments due to the City for 60 days.
COVID-19 Update: “Maine Revenue Services (“MRS”), a part of the Department of Administrative and Financial Services, is announcing it is limiting public access to MRS facilities. This change goes into effect Thursday, March 19, 2020. MRS has not determined a date to resume normal building access.” (March 18, 2020)
News Release: To assist businesses affected by the economic impact of COVID-19, Comptroller Peter Franchot announced he will extend business-related tax filing deadlines. The June 1 extension applies to certain business returns with due dates during the months of March, April and May 2020 for businesses filing sales and use tax, withholding tax, and admissions & amusement tax, as well as alcohol, tobacco and motor fuel excise taxes, tire recycling fee and bay restoration fee returns. (March 11, 2020)
Business taxpayers who file and pay by the extended due date will receive a waiver of interest and penalties.
Important Update: The Comptroller of Maryland has issued a Tax Alert Bulletin (No. 03-20) detailing actions taken by the Office of the Comptroller of Maryland due to the situation caused by COVID-19. The full Notice text is available, here. Highlights include:
- The Deadline to file a 2019 income tax return is July 15, 2020. Interest and penalty shall be assessed on any unpaid tax from July 15, 2020 until the date the tax is paid.
- Fiscal year filers with tax years ending January 1, 2020 through March 31, 2020 are also eligible for the July 15, 2020 extension for filing returns and payment. The due date for March quarterly estimated payments of 2020 taxes is also extended to July 15, 2020.
- Cessation of collection efforts – the Comptroller’s office will not send out lien warning notices, issue liens, attach bank accounts, hold up the renewal of any license including Maryland driver’s licenses, or offset vendor payments for Maryland taxes. Taxpayers receiving notices from the Comptroller’s Office during the current COVID-19 crisis should contact the telephone number or email address on the notice for additional information
- The Comptroller has extended the time to file sales and use tax returns for sales taking place in February, March and April of 2020 to June 1, 2020. Sales and use tax returns, and their accompanying payments, are due no later than June 1, 2020.
- Due to the state of emergency, any withholding payments due for periods including February, March and April 2020, may be submitted by June 1, 2020, without incurring penalties or interest.
- The Comptroller has determined that penalty will be abated on admissions and amusement returns and payments for gross receipts from February, March and April 2020, so long as the returns and payments are submitted by June 1, 2020.
- The Comptroller has determined that penalty will be abated on admissions and amusement returns and payments for gross receipts from February, March and April 2020, so long as the returns and payments are submitted by June 1, 2020.
- Manufacturers’ tobacco tax returns for activity from February, March and April 2020 are now due no later than June 1, 2020. No interest or penalty will be imposed if returns and payments are submitted by June 1, 2020.
- Cigarette and other tobacco products wholesalers’ returns and payments for products to which wholesalers took possession in February, March and April 2020, are due no later than June 1, 2020.
- Payment for liabilities incurred by licensed retailers and tobacconists between October 21, 2019 and January 21, 2020, are due no later than June 1, 2020. No interest or penalties will be imposed if returns and payment are submitted by June 1, 2020.
- Motor carrier and motor fuel tax returns and payments otherwise due in March, April or May 2020, may be submitted no later than June 1, 2020, without incurring penalty or interest.
- Bay restoration fees due in March, April and May 2020, may be paid no later than June 1, 2020, without incurring interest or penalties.
- The deadline to report and pay unclaimed property for insurance companies for calendar year 2019 is extended to July 31, 2020. Companies should continue to report the unclaimed property amounts and make payment at the same time.
News Release: Following the March 18, 2020, White House press conference announcement of a 90-day extension of the April 15, 2020, deadline for federal income tax payments, Maryland Comptroller Peter Franchot announced that Maryland business and individual income taxpayers will be granted the same relief (i.e., a 90-day extension of the April 15 deadline for tax payments). No interest or penalty for late payments will be imposed if 2019 tax payments are made by July 15, 2020.
||TIR 20-2 Late-File and Late-Pay Penalty Relief for Certain Business Taxpayers Affected by the COVID-19 State of Emergency: The Massachusetts Department of Revenue (DOR) released a Technical Information Release (TIR) announcing relief for restaurant and hospitality businesses operating in the state. Pursuant to the TIR, the DOR has agreed to “waive any late-file or late-pay penalties imposed under G.L. c. 62C, § 33 for returns and payments due during the period March 20, 2020 through May 31, 2020, for the following taxpayers:
- Vendors with meals tax return and payment obligations pursuant to G.L. c. 62C, § 16 that do not otherwise qualify for relief announced in Emergency Regulation 830 CMR 62C.16.2(7)1 promulgated by the Department on March 19, 2020; and
- Operators and intermediaries with room occupancy excise return and payment obligations pursuant to G.L. c. 62C, § 16 that do not otherwise qualify for relief announced in Emergency Regulation 830 CMR 64G.1.1 (11) promulgated by the Department on March 19, 2020.
This is a waiver of penalties only; statutory interest will continue to accrue. To be eligible for a penalty waiver, vendors, operators and intermediaries must file their returns and remit payments on or before June 20, 2020. The penalty waiver offered in this TIR is limited to the taxpayers and tax periods outlined above. Applications for waiver of penalties for sales tax other than sales tax on meals, or other circumstances not covered above, will be handled on a case-by-case basis based on reasonable cause.” (March 19, 2020)
830 CMR 62C.16.2: Sales and Use Tax Returns and Payments – Emergency Amendment Promulgated 3/19/2020 – New Section (7) Added:
(7) Sales tax filing and payment schedule for certain vendors during COVID-19 State of Emergency. Notwithstanding 830 CMR 62C.16.2(3)-(6), with respect to sales by vendors whose cumulative liability in the 12-month period ending February 29, 2020 for returns required to be filed under M.G.L. c. 62C, § 16(h) is less than $150,000, the sales and use tax filing and payment schedule during the COVID-19 State of Emergency declared by the Governor shall be as follows. Returns and payments due during the period beginning March 20, 2020 and ending May 31, 2020, inclusive, shall be suspended. All such returns and payments shall be due on June 20, 2020. This suspension does not apply to marijuana retailers as defined in M.G.L. c. 94G, § 1, marketplace facilitators or vendors selling motor vehicles. Such vendors shall continue to file returns and make payments in accordance with the rules set forth in 830 CMR 62C.16.2(3)-(6).
830 CMR 64G.1.1: Massachusetts Room Occupancy Excise – Emergency Amendment Promulgated 3/19/2020 – New Subsection (11)(g) Added:
(g) Returns and payments during COVID-19 State of Emergency. Notwithstanding 830 CMR 64G.1.1(11)(a)-(f), with respect to transfers of occupancy by operators whose cumulative liability in the 12-month period ending February 29, 2020 for returns required to be filed under M.G.L. c. 62C, § 16(g) is less than $150,000, the filing and payment schedule during the COVID-19 State of Emergency declared by the Governor shall be as follows. Returns and payments due during the period beginning March 20, 2020 and ending May 31, 2020, inclusive, shall be suspended. All such returns and payments, including any local option amounts, shall be due on June 20, 2020. This suspension does not apply to intermediaries. Intermediaries shall continue to file returns and make payments in accordance with the rules set forth in 830 CMR 64G.1.1(11). (March 19, 2020)
COVID-19 Update: DOR is actively monitoring the latest developments regarding COVID-19. All DOR tax and child support walk-in centers are closed until further notice. (March 18, 2020)
“DOR recognizes that our customers may need assistance with various tax, child support, and municipal obligations due to the impact of the coronavirus. We are here to help and taxpayers are advised of the following support tools and measures during this public health emergency:
The Massachusetts Department of Revenue has closed its offices to the public from 12 noon on March 24 until 12 noon on April 7, 2020.
Treasury Press Release – Small Business Taxpayers Provided Tax Assistance: This press release piggy-backs off of the Department of Treasury notice issued on March 17, 2020. “Small businesses that have experienced disrupted operations due to the COVID-19 pandemic now have additional time to make their sales, use and withholding tax monthly payment, according to the Michigan Department of Treasury.
Effective immediately, small businesses scheduled to make their monthly sales, use and withholding tax payments on March 20 can postpone filing and payment requirements until April 20. The state Treasury Department will waive all penalties and interest for 30 days. The waiver is not available for accelerated sales, use or withholding tax filers.” (March 18, 2020)
Notice: Penalty and Interest Waived for 30 Days for Monthly Sales, Use, and Withholding Tax Returns Due March 20, 2020: “In recognition of the present challenges faced by these taxpayers, the Department of Treasury is waiving penalty and interest for the late payment of tax or the late filing of the return due on March 20, 2020. The waiver will be effective for a period of 30 days; therefore, any return or payment currently due on March 20, 2020 may be submitted to the Department without penalty or interest through April 20, 2020.”
“The waiver is limited to sales, use, and withholding payments and returns due March 20, 2020. Any payment or return otherwise due after that date will not be eligible for the current waiver. The waiver is not available for accelerated sales, use, or withholding tax filers. Those taxpayers should continue to file returns and remit any tax due as of the original due dates.” (March 17, 2020)
Individual Income Tax Filing and Payment Deadlines Extended: The Minnesota Department of Revenue is providing additional time until July 15, 2020, for taxpayers to file and pay 2019 Minnesota Individual Income Tax without any penalty and interest. This includes all estimated and other tax payments for tax year 2019 that would otherwise be due April 15, 2020. Taxpayers who cannot file or pay by July 15, 2020 may ask the Minnesota Department of Revenue to cancel or reduce penalties, additional tax, and interest for late filing or payment with reasonable cause, including emergency declarations by the president and governor due to COVID-19. (March 23, 2020)
The Minnesota due date of April 15, 2020 has not changed for Corporation Franchise, S Corporation, Partnership, or Fiduciary taxes. However, under state law:
- C corporations receive an automatic extension to file their Minnesota return to the later of November 15, 2020, or the date of any federal extension to file.
- S corporations, partnerships, and fiduciaries receive an automatic extension to file their state return to the date of any federal extension to file.
MinnesotaCare Notice For Filing Extension: The Minnesota Department of Revenue will grant a 60-day filing extension on request for MinnesotaCare returns that were due on March 16, 2020, if needed due to COVID-19. This applies to Provider Tax, Hospital Tax, Surgical Center Tax, Wholesale Drug Distributor Tax, and Legend Drug Use Tax. If you request a filing extension by April 15, you will have until May 15 to file your return. You can request relief from penalty and interest for reasonable cause for late payments that were due March 16. See Abatement Information for Businesses.
Minnesota Gambling Tax Payment Extension: The Minnesota Department of Revenue will grant a 30-day Lawful Gambling Tax extension upon request for payments due on Friday, March 20, if needed due to COVID-19. Businesses and nonprofit organizations with a monthly Lawful Gambling Tax payment that request an extension by March 27 will have until April 20 to make that payment.
Sales Tax Payment Extension for Eligible Businesses: “In line with the state’s continued response to COVID-19, the 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.”
“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.” (March 18, 2020)
Extensions for the COVID-19 Pandemic: The Mississippi Department of Revenue is providing relief to individual and business taxpayers in response to the COVID-19 pandemic. The deadline to file and pay the 2019 individual income tax and corporate income tax is extended until May 15, 2020. The first quarter 2020 estimated payment is also extended until May 15, 2020. Penalty and interest will not accurate on the extension period through May 15, 2020. The extension does not apply to Sales Tax, Use Tax or any other tax types. (March 23, 2020)
COVID-19 Update: Mirroring the federal guidance issued by the Internal Revenue Service (IRS), the Missouri Department of Revenue (DOR) will provide special filing and payment relief to individuals and corporations:
- Filing deadline extended: The deadline to file income tax returns has been extended from April 15, 2020 to July 15, 2020.
- Payment relief for individuals and corporations: Income tax payment deadlines for individual and corporate income returns with a due date of April 15, 2020, are extended until July 15, 2020. This payment relief applies to all individual income tax returns, income tax returns filed by C Corporations, and income tax returns filed by trusts or estates. The Department of Revenue will automatically provide this relief, so filers do not need to take any additional steps to qualify.
- 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.
(March 21, 2020)
Extended Individual Income Tax Filing Deadline: The 2019 filing tax deadline for individuals income taxpayers has been extended to July 15 in accordance with the new federal filing deadline. The Montana Department of Revenue has also indicated that it will be lenient in waiving penalties and interest associated with late tax payments and the department will work with taxpayers on an individual basis.
Legislature: The Nebraska legislature declined to meet as scheduled on March 17, 2020, and the session remains adjourned until further notice.
COVID-19 update: The Nevada Department of Taxation has closed all offices to the public. (March 16, 2020)
COVID-19 Response: New Jersey introduced AB 3841, a bill that would automatically extend time to file gross income tax or corporation business tax return if federal government extends filing or payment due date for federal returns. The measure was introduced and unanimously passed the Assembly on March 16, 2020, and moved to the Senate. On March 19, 2020, the New Jersey State Senate voted unanimously to approve the legislation. The bill now goes to Governor Phil Murphy for signature.
COVID-19 update: All walk-in services at the Division of Taxation regional and Trenton offices are closed to the public as a precaution to safeguard public health. The Division anticipates reopening on April 1, 2020. (March 18, 2020)
Tax Relief for COVID-19 Extension of Time to File New Mexico Taxes: The New Mexico Taxation and Revenue Department (TRD) has announced that New Mexico taxpayers qualify for extended return and payment deadlines due to the Coronavirus Disease 2019 (COVID-19) pandemic (emergency declaration) by the Federal Government and the COVID-19 statewide public health emergency declaration (Executive Order 2020-004) by the Governor of New Mexico Michelle Lujan Grisham. The extensions affect personal income tax, corporate income tax, and withholding tax. Secretary Stephanie Schardin Clarke authorized the following extensions with her authority under Section 7-1-13 NMSA 1978.
The Taxation and Revenue Department (TRD) will not impose a late-filing and late-payment penalty associated with the return filing and payments set forth below:
- New Mexico personal income tax returns and payments due between April 15, 2020 and July 15, 2020 may be submitted without penalty no later than July 15, 2020;
- New Mexico corporate income tax returns and payments due between April 15, 2020 and July 15, 2020 may be submitted without penalty no later than July 15, 2020; and
- Withholding tax returns and payments due between March 25, 2020 and July 25, 2020 may be submitted without penalty no later than July 25, 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.
TRD Offices open by appointment only: New Mexico Taxation and Revenue Department district offices statewide are open on an appointment-only basis as part of the state’s efforts to limit in-person contact in response to the COVID-19 public health emergency. Requiring appointments will ensure that New Mexicans do not unnecessarily wait in crowded lobby areas. Taxpayers may make an appointment via telephone or via email. (March 17, 2020)
Abatement of Penalties and Interest for Sales and Use Tax Due to COVID-19 (N-20-1): Sales tax payments and returns were due March 20, 2020; however, penalty and interest may be waived for quarterly and annual filers who were unable to file or pay on time due to COVID-19. See Tax relief for quarterly and annual sales tax vendors affected by COVID-19 to request relief from penalty and interest.
Executive Order Continuing Temporary Suspension and Modification of Laws Relating to Disaster Emergency: Pursuant to an Executive Order (No. 202.8) The New York State Governor has limited court operations to essential matters during the pendency of the COVID-19 health crisis. The Governor also suspended all state statute of limitations including “any specific time limit for the commencement, filing, or service of any legal action, notice, motion or other process or proceeding, as prescribed by the procedural laws of the state are tolled until April 19, 2020.” The Executive Order made additional updates that can be viewed here.
Budget update: The New York state comptroller released an updated revenue projection for the state 2020–2021 budget to reflect the anticipated economic impact of COVID-19. The projection estimates that tax revenues will be at least $4 billion below initial projections, with the possibility of a decrease of more than $7 billion. (March 17, 2020)
|New York City
Finance Memorandum – Business Tax Filing Extensions and the COVID-19 Outbreak: “DOF Commissioner Jacques Jiha is exercising his authority under the Administrative Code of the City of New York to allow for a waiver of penalties for DOF-administered business and excise taxes due between March 16, 2020, and April 25, 2020. Taxpayers may request to have the penalties waived on a late-filed extension or return, or in a separate request.
If you file an extension or return or make a tax payment in accordance with these rules, you will not be subject to any late filing, late payment, or underpayment penalties. For purposes of the above filings, while late filing and late payment penalties are waived, interest, where applicable, at the appropriate underpayment rate, must be paid on all tax payments received after the original due date calculated from the original due date to the date of payment.
All paper filings under this announcement should be marked ‘COVID-19’ on the top center of the first page. The same relief will be provided to adversely affected electronic filers.
You may request an abatement by writing to:
NYC Department of Finance
P.O. Box 5564
Binghamton, NY 13902-5564
You may also use our online portal at www.nyc.gov/dofaccount, or send an email to Penalty_Abatements@finance.nyc.gov. Please include the letter identification on your notice, or your EIN.” (March 19, 2020)
Comptroller Stringer Pens Open Letter to Small Businesses Amid COVID-19 Pandemic: In his letter, Comptroller Stringer urged New York City to consider suspending payment of its commercial rent tax for two months for ground-floor retailers with demonstrated losses. Comptroller Stringer also urged the state to consider a limited sales tax holiday for restaurants, hotels and street-level retail stores. (March 19, 2020)
Extended Filing Deadline: The NC Department of Revenue (NCDOR) recently announced that they will extend the April 15 tax filing deadline to July 15 for individual, corporate and franchise taxes to mirror the announced deadline change from the Internal Revenue Service. In addition to the filing extension, the NCDOR will not charge penalties for those filing and paying their taxes after April 15, as long as they file and pay their tax before the updated July 15 deadline. The NCDOR cannot, however, offer relief from interest charged to filings after April 15. 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.
These changes do not apply to trust taxes, such as sales and use or withholding taxes.
The NCDOR has further indicated that it will issue a notice with all the details of this change as soon as it is finalized. (March 21, 2020)
Additional Penalty Relief Notice: In response to the federal relief payment announced by the IRS on March 18, 2020, the North Carolina Department of Revenue published a notice stating that it will not impose a penalty upon individuals and businesses (taxpayers) who do not pay their outstanding state income tax liability on tax returns due on April 15, 2020, so long as the taxpayers pay the tax due by July 15, 2020.
“For State income tax returns due on April 15, 2020, the Department will not impose the penalty for failure to pay tax when due (N.C. Gen. Stat. § 105-236(4)) upon taxpayers, if the income tax is paid by July 15, 2020. Importantly, in accordance with the IRS’ action, the original due date for filing the State income tax return remains April 15, 2020. If you cannot file your State income tax return by April 15, 2020, you must file a request for extension with the IRS or with the Department on or before April 15, 2020. For more information on requesting an extension, see the Department’s Important Notice dated February 24, 2020. Without a valid extension, an income tax return received after April 15, 2020, is late and is subject to the penalty for failure to file the return on the date it is due (N.C. Gen. Stat. 236(a)(3)).
State law prevents the Department from waiving any interest, including interest assessed for the underpayment of estimated tax, except in limited cases. See N.C. Gen. Stat. § 105-237(a). As such, if you owe additional tax, the Department is required to charge interest on any unpaid tax, accruing from April 15, 2020, until the tax is paid.
In addition to the relief granted in this notice, the Secretary of Revenue may waive or reduce any penalties provided for in Subchapter 1 of Chapter 105. See N.C. Gen. Stat. § 105-237(a). A taxpayer seeking waiver of penalties not covered by this notice should review the Department’s Penalty Policy and complete Form NC-5500, Request to Waive Penalties (NC-5500).” (March 19, 2020)
Penalty Relief Notice: The North Carolina Department of Revenue published a notice that outlines penalty waivers for taxpayers related to the COVID-19 state of emergency. The waivers are for certain “late action penalties.” Specifically, the secretary elected to waive the following penalties for failing to obtain a license, to file a return or to pay taxes:
- The penalty for failure to obtain a license (G.S. 105-236(a)(2)
- The penalty for failure to file a return (G.S. 105-236(a)(3))
- The penalty for failure to pay tax when due (G.S. 105-236(a)(4))
- The penalties regarding informational returns (G.S. 105-236(a)(10)).
(Collectively, late action penalties). The waiver applies to the failure to timely obtain a license, file a return or pay a tax that is due between March 15, 2020, and March 31, 2020, if the license is obtained, the return or extension application is filed, or the tax is paid by April 15, 2020.
The Department will waive any late action penalties assessed against taxpayers that have been affected by COVID-19. The waiver for affected taxpayers will apply to late action penalties for deadlines occurring between March 15, 2020, and March 31, 2020.
To qualify for the waiver, an affected taxpayer must file the return, pay the tax, obtain the license or receive an extension on or before April 15, 2020. In addition, affected taxpayers who cannot meet their filing or payment requirement as a result of COVID-19 should complete Form NC-5500, Request to Waive Penalties. Affected taxpayers should write “COVID-19” on the top of the NC-5500. The NC-5500 is available on the Department’s website, www.ncdor.gov. (March 17, 2020)
NC DOR Service Centers Closed to the Public: The North Carolina revenue secretary announced that all North Carolina Department of Revenue Service Centers will be closed to the public at least through April 1, 2020, in response to COVID-19. Taxpayers are encouraged to file their taxes online. (March 17, 2020)
Guidance for North Dakota Taxpayers During COVID-19 Precautions: North Dakota has published the following guidance on its website: North Dakota is currently aligned with the IRS extension date. Individuals or businesses who are unable to file an income tax return or pay the tax by the April 15 deadline, can file and make payment through July 15, 2020, without penalty and interest.
What if COVID-19 impacts my ability to file and pay my other taxes on time?
As a North Dakota taxpayer, you have the ability to request additional time if you believe you will be unable to file a return or pay the tax in a timely manner because of a COVID-19 related situation, please contact the Office of State Tax Commissioner.
Will COVID-19 impacts delay my refund?
No. Refunds are being issued in a timely manner. Use the Where’s My Refund tool to check on your refund status.
COVID-19 Update: The Ohio Department of Taxation has closed its walk-in center due to concerns regarding COVID-19. For available phone number and email options, please use the “contact” tab on the Department’s website.
Oklahoma Tax Commission to allow deferred tax payments due to COVID-19: “In an emergency meeting of the Oklahoma Tax Commission held on March 19, all three Commissioners unanimously voted to extend the deadline to pay Oklahoma income taxes that would be due April 15, 2020 to July 15, 2020, following the newly established Internal Revenue Service (IRS) deadlines. Mirroring the guidance issued by the IRS, Commissioners voted to allow all individual and other non-corporate tax filers to defer up to $1 million of income tax payments due on April 15, 2020, until July 15, 2020, without penalties or interest. Corporate taxpayers will be granted a similar deferment of up to $10 million of income tax payments that would be due on April 15, 2020, until July 15, 2020, without penalties or interest.
Following IRS guidelines, the Commission’s Order does not change the April 15 filing deadline and 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.”
COVID-19 Update: “As COVID-19 continues to disrupt many aspects of public life, the Oklahoma Tax Commission encourages taxpayers to use our online services. The lobby of our Oklahoma City main office is open for services to taxpayers which adhere to current CDC guidelines. Our Compliance Division lobby is closed at this time, as is the lobby of our Tulsa location. Taxpayers may visit our main office (2501 N Lincoln Blvd, Oklahoma City, OK) for in-person service.” (March 18, 2020)
Personal and corporate income tax: The Oregon Department of Revenue published the following statement on its website: “On March 18, 2020, the IRS issued a news release (Notice 2020-17) allowing all individual and other non-corporate tax filers to defer up to $1 million of federal income tax (including self-employment tax) payments due on April 15, 2020 until July 15, 2020, without penalties or interest. The guidance also allows corporate taxpayers a similar deferment of up to $10 million of federal income tax payments that would be due on April 15, 2020 until July 15, 2020, without penalties or interest. This guidance does not change the April 15 filing deadline.
The Oregon Department of Revenue has received several questions asking if Oregon is going to provide similar relief. Now that the department knows what the IRS is providing, we are evaluating our options and authority under the statutes to provide relief for Oregon and its taxpayers. We expect a decision to be made soon.” (March 19, 2020)
COVID-19 Tax Relief Options: Corporate Activity Tax: “Initial quarterly payments for the new Corporate Activity Tax (CAT) are due April 30, 2020. The department understands that the pandemic may impact commercial activity, up or down, to an extent that makes it difficult for businesses to estimate their first payment. The department will not assess underpayment penalties to taxpayers making a good faith effort to estimate their first quarter payments.” (March 13, 2020)
COVID-19 Tax Relief Options: All other tax programs Department of Revenue administers: “If an action of the IRS or a state-declared emergency will impair the ability of Oregon taxpayers (or the state) to take action required within the time required by law, the department may extend any statutory period of limitation on any tax that is collected by the Oregon Department of Revenue. If the department makes such a decision, an order will be issued and announced, and filed with the Secretary of State.” (March 13, 2020)
Pennsylvania Extends Personal Income Tax Return Filing Deadline to July 15, 2020: The Department of Revenue 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. The Department of Revenue will also waive penalties and interest 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. (March 21, 2020)
Waiver of Penalties on Accelerated Sales Tax Prepayments: To assist the business community as the commonwealth responds to the COVID-19 outbreak, 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.
Visit the Department of Revenue’s page on Accelerated Sales Tax Prepayments for more information on how to calculate your prepayments. All businesses are encouraged to remit online using e-TIDES, the department’s online tax system for businesses. Find the REV-819 on the department’s website for a schedule of return and prepayment due dates.
Property Tax/Rent Rebate Program Application Deadline Extended to End of Year: In response to the COVID-19 outbreak, the deadline for older adults and Pennsylvania residents with disabilities to apply for rebates on rent and property taxes paid in 2019 has been extended from June 30 to December 31, 2020, the Department of Revenue announced on March 19, 2020.
Update on Inheritance Tax Returns: “Due to the recent closing of commonwealth and county office buildings to help prevent the spread of COVID-19, the Department of Revenue is aware that taxpayers have been unable to meet their Inheritance Tax filing and payment obligations. To address these concerns, the department is asking County Register of Wills offices to implement the following procedures when their operations resume:
- If a taxpayer is filing a return or making a payment and indicates that either was due during the timeframe that offices were closed, please place a date received as of March 12, 2020, on the return and the receipt.
- In addition, the department is making system modifications to not apply penalties for payments received late, that otherwise would have been timely during office closures.” (March 19, 2020)
Information on Tax Appeals: “Because commonwealth offices are currently closed to help prevent the spread of COVID-19, there will be additional time in certain cases for taxpayers who wish to appeal a tax assessment issued by the Department of Revenue or file a petition for a tax refund with the Board of Appeals. A petition will be accepted as timely filed if it is filed by the later of the following dates:
- 30 days after the reopening of the Board of Appeals offices; or
- The original appeal deadline.
Please know that If the appeal deadline fell on a date prior to the closure of commonwealth offices (March 16, 2020), the original appeal deadline is still applicable. In other words, in these cases petitions will be considered as timely filed if they are filed by the last day of the appeal period. Additionally, the Board of Appeals will accept any submission of requested documentation as long as it is received within 30 days after the Board of Appeals offices reopen. Visit the Board of Appeals’ Online Petition Center for further information on tax appeals.” (March 19, 2020)
Revenue Offices Closed to the Public: “The Department of Revenue’s offices and customer service call center are currently closed as the commonwealth takes steps to help slow the spread of COVID-19 in Pennsylvania. That means anyone visiting a Revenue district office or trying to call the department over the phone will not be able to reach a representative at this time. As an alternative, the department is encouraging taxpayers to use its Online Customer Service Center.”
COVID-19 Resource Page: The Rhode Island Division of Taxation published a COVID-19 update page on its website. In conjunction with announcements made by United States Treasury Secretary Steven T. Mnuchin and Rhode Island Governor Gina M. Raimondo involving the April 15, 2020 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.
COVID-19 Update: The Rhode Island General Assembly has cancelled all sessions March 16–20. Although the Department of Taxation’s offices remain open, the Department urges taxpayers to limit in-person visits and to instead seek assistance via telephone, email or online. (March 14, 2020)
SC Information Letter #20-4: South Carolina is extending the Income Tax filing and payment due date from April 15, 2020 to July 15, 2020 in alignment with the IRS.
SC Information Letter #20-3: The South Carolina Department of Revenue (SCDOR) is offering tax relief to eligible taxpayers and businesses that have been affected by COVID-19. The SCDOR indicated that it is extending its tax relief to:
- Individuals and businesses located in South Carolina that have been impacted by COVID-19
- Taxpayers who have businesses in South Carolina with offices in South Carolina,
- Taxpayers whose tax records are located in South Carolina
- Taxpayers whose returns are prepared by tax professionals affected by COVID-19.
Taxpayers affected by COVID-19 may be eligible for the following relief with respect to any taxes administered by the SCDOR or tax returns filed with the SCDOR:
- Extensions of time to file tax returns and pay taxes (including estimated payments). The due dates for returns and payments due on or after April 1, 2020, have been postponed until June 1, 2020.
- Waiver of penalties and interest due as a result of any extensions.
Returns filed electronically by affected taxpayers through MyDORWAY do not require any action to qualify for this relief. Taxpayers filing by mail should write “CORONAVIRUS” or “COVID-19” at the top of any paper return relying on this relief, or should complete the “disaster area” check box if one is provided on the return. (March 17, 2020)
|South Carolina – Charleston
City of Charleston Update: The City and County of Charleston, South Carolina, issued a notice on March 17, 2020, indicating that county and city officials agreed to defer collection of accommodations and hospitality taxes for 90 days.
COVID-19 Update: In response to the governor’s executive order, the South Dakota Department of Revenue closed all offices through March 23, 2020. Department staff are available to assist taxpayers via online chat or via telephone.
Legislature: Tennessee announced that its state legislative session will be limited to passing a balanced budget in response to COVID-19.
Effective March 20, 2020: “The Tennessee Department of Revenue is not currently receiving walk-in customers at our regional and downtown offices March 20, 2020, through April 12, 2020. This includes the Motor Carrier office at 44 Vantage Way in Nashville.”
COVID-19 Updates – A Message from the Comptroller: “While the Comptroller’s office recognizes the hardships businesses are facing during these uncertain times, the taxes that are due are based on sales made in February and collected by businesses on behalf of the state and local governments in February, the decision is not to extend or delay the March due dates for state and local sales taxes, hotel taxes, mixed beverage gross receipts and sales taxes, motor vehicle rental tax, seller-financed motor vehicle sales tax and motor fuels taxes.” (March 18, 2020)
Changes Related to COVID-19: “The Tax Commission is making temporary changes to help slow the spread of COVID-19. Please know that we are doing everything possible to address the tax and motor vehicle needs of the public during this epidemic.” The Utah Tax Commission indicated that it will issue further updates via its website.
Income Tax Filing and Payment Information: “The IRS has extended the deadline for payment of 2019 Individual Income Tax due (up to $1 million) and Corporate Income Tax due (up to $10 million) to July 15, 2020 … Utah has an automatic 6-month extension to file these taxes but payment must be made by April 15, 2020 … The deadline for payment of Utah state taxes has not changed at this time. Any change to these deadlines will immediately be posted” on this site. (March 19, 2020)
COVID-19 Update: The Vermont income tax filing due dates for the following taxes have also been extended from April 15, 2020 to July 15, 2020:
- Vermont personal income tax
- Vermont Homestead Declaration and Property Tax Credit Claims
- Corporate income tax
- Fiduciary income tax
Taxpayers may file and pay these taxes before July 15, 2020, without penalty or interest. This includes any tax year 2020 estimated payments that were due for these taxes on April 15, 2020.
Meals and Rooms Tax and Sales and Use Tax: In addition to moving the deadline for filing Vermont income tax returns from April 15, 2020 to July 15, 2020, Commissioner Craig Bolio has indicated that the Department will provide relief to businesses owing Meals and Rooms Tax and Sales and Use Tax by foregoing any penalty or interest for those who are not able to meet the March 25 or April 25 deadlines. It is important to note this is not an abatement of the tax collected. The Commissioner of Taxes does not have the authority to provide an abatement of these taxes once they have been collected. This is also not a cancelation of these taxes moving forward. Therefore, businesses must continue to collect Meals and Rooms and Sales and Use Taxes as they normally would.
Effective March 20, 2020, the Department closed its Montpelier office to the public.
COVID-19 Emergency Response Package: On March 15, 2020, the Vermont House passed COVID-19 emergency response legislation as an amendment to an emergency responder budget bill. The text of the amendment is not yet available. The legislature has adjourned until March 24, 2020, but the Vermont Senate plans to take it up after the recess. The package was attached to H.742, legislation that provides grants for emergency medical personnel training.
Virginia Tax Bulletin 20-3, Option to Request Extension of Sales Tax Deadlines for Those Affected by COVID-19: Businesses impacted by coronavirus can request to defer the payment of state sales tax due March 20, 2020, for 30 days. When granted, businesses will be able to file no later than April 20, 2020 with a waiver of any penalties.
Virginia Tax Bulletin 20-4, Income Tax Payment Extension and Penalty Waiver in Response to COVID-19: Any 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. Late payment penalties will not be charged if payments are made by June 1, 2020.
COVID-19 Related Relief for Taxpayers: The Washington State Department of Revenue (DOR) is taking the following measures to provide relief to any businesses affected by COVID-19. Upon request, the DOR will:
- Provide extensions for filing and paying tax returns, tax assessments and billings that come due during the state of emergency
- Work with taxpayers that have payment plan agreements to extend payment dates
- Reschedule a planned audit (contact the auditor).
Effective March 18, 2020, the DOR temporarily closed its offices to the public to support the state’s efforts to fight the spread of COVID-19.
|Washington – Seattle
COVID-19 Update: Effective March 10, 2020, the Department of Finance and Administrative Services (FAS) will defer business and occupation (B&O) tax collections for eligible business owners, allowing small business owners increased flexibility during a period of financial duress caused by the COVID-19 outbreak. Eligible businesses include those that have annual taxable income of $5 million or less and currently pay city taxes on a quarterly basis. Businesses will have until late 2020 to pay their B&O under this plan. The city estimates that 20,000 businesses could be eligible for this, based on B&O reporting.
COVID-19 Update: The West Virginia State Tax Department is not currently receiving walk-in customers for assistance at its regional offices in Beckley, Charleston, Clarksburg, Martinsburg, Parkersburg, and Wheeling, West Virginia, due to concerns about the novel coronavirus (COVID-19).
The Tax Department is also temporarily suspending in-person contact with revenue agents, property tax appraisers and the making of field audits at taxpayer and tax practitioner locations.
Extended Tax Filing Deadline: Wisconsin income tax payment and return due dates are automatically extended to July 15, 2020. Wisconsin law will automatically extend time and waive interest and penalties for taxpayers due to a presidentially declared disaster.
COVID-19 Update: “With COVID-19, taxpayers are asked to use DOR’s online services in lieu of in-person visits to customer service centers.” (March 17, 2020)