IN DEPTH

COVID-19 State and Local Tax Updates

State

Brief Overview of Guidance Issued in Response to COVID-19

Alabama

ADOR Operational Updates Due to COVID-19: Alabama residents are taxable on all of their income, regardless of whether they work either within or outside the state. During the federally declared period of emergency due to the coronavirus (COVID-19) pandemic, Alabama will not change withholding requirements for businesses based on an employee’s temporary telework location within Alabama that is necessitated by the pandemic and related federal or state measures to control its spread. Alabama will not consider temporary changes in an employee’s physical work location during periods in which temporary telework requirements are in place due to the pandemic to impose nexus or alter apportionment of income for any business. (May 12, 2020)

 

ADOR issues update for income and other tax relief: The Alabama Department of Revenue announced that the period for certain tax relief related to income and other taxes has been updated. Taxpayers can defer state income tax payments due on or after April 1, 2020 (previously April 15), and before July 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers. Other taxes included in the deadline extension are corporate income tax, the Financial Institution Excise Tax (FIET), and the Business Privilege Tax (BPT).

 FAQs (Updated April 14, 2020)

NEW: APRIL 14, 2020: The department’s relief Order was updated on April 10, 2020, to mirror the most recent filing and payment extensions ordered by the IRS. Does the updated Alabama order now apply to second quarter estimated payments for the 2020 tax year? Yes. The updated Order extends the due date for all income tax payments originally due on or after April 1, 2020 to July 15, 2020. Additional information related to this extension can be found in responses to the questions below.

Eligibility

1. Who is eligible for relief under the Order?Any person with a state Individual Income Tax or Corporate Income Tax (collectively, State Income Tax) payment, a Financial Institution Excise Tax (FIET) payment, or a Business Privilege Tax (BPT) payment due on or after April 1, 2020, and before July 15, 2020, or a State Income Tax, FIET, or BPT return due on or after April 1, 2020, and before July 15, 2020, is affected by the COVID-19 pandemic for purposes of the relief described in this 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.

2. Do I have to be sick, quarantined, or have any other impact from COVID-19 to qualify for payment relief? No, you do not have to be sick, or quarantined, or have any other impact from COVID-19 to qualify for relief under the Order. You only need to have an Alabama income tax return or payment due on or after April 1, 2020, and before July 15, 2020, as described above.

3. What are the form numbers of the specific Alabama income tax returns whose filing deadlines have been postponed to July 15, 2020 under the Order? The Order postpones the filing and payment of Alabama income taxes and Business Privilege Tax reported from April 1, 2020, to July 15, 2020, on the following forms:

   • Forms 40 (Individual Income Tax Return), 40A (Individual Income Tax Return-Short Form), 40NR (Individual Income Tax Return – Non-Residents), 40EZ (Alabama Simplified Individual Income Tax Return), 40ES (Individual Estimated Tax Form)

   • Forms 20C (Alabama Corporate Income Tax Return), 20C-C (Alabama Consolidated Corporate Income Tax Return)

   • Forms ET-1 (Alabama Financial Institution Excise Tax Return), ET-1C (Alabama Consolidated Financial Institution Excise Tax Return), Form ET-8 (Extension to File Financial Institution Excise Tax Return – e-filed through My Alabama Taxes)

   • Form 41 (Fiduciary Income Tax Return)

   • Forms BPT-IN (Alabama Business Privilege Tax Initial Privilege Tax Return), CPT (Alabama Business Privilege Tax and Annual Report for C-Corporations and Other Specified Entities), PPT (Alabama Business Privilege Tax and Annual Report for Pass-Through Entities Only)

By separate order, the Department has postponed the filing and payment of Alabama income taxes by a pass-through entity on behalf of a nonresident from March 15, 2020 to July 15, 2020 on the following form:

• Form PTE-C (Nonresident Composite Payment Return)

4. I am a fiscal year filer. My Alabama income tax return for fiscal year 2019 is due on April 15, 2020. Am I an “Affected Taxpayer” eligible for relief under the Order? Yes, the relief applies to Alabama income tax returns and payments with respect to an Affected Taxpayer’s 2019 taxable year and postpones 2019 return filings and payments due on April 1, 2020 and before July 15, 2020. If your Alabama income tax return for your fiscal year ending during 2019 is due on April 15, 2020, whether that is the original due date or the extended due date, your due date for filing is postponed to July 15, 2020. Payment relief applies to all original payments due on or after April 1, 2020 and before July 15, 2020.

5. What about businesses or other entities that have filing due dates on May 15, June 15, or some other date besides April 15. Have their filing and payment deadlines been postponed? Yes, The Order updated on April 10, 2020, applies to Alabama income tax returns and payments due on or after April 1, 2020, for the 2019 tax year and estimated payments for the 2020 tax year.

6. Does the relief provided in the Order apply to estimated payments for a corporation due on April 15, 2020? Yes, for any taxpayer whose Alabama income tax return filing or payment deadline is on or after April 1, 2020, but before July 15, 2020, it has now been postponed to July 15, 2020, the due date for Extension payments and Estimate payments has been postponed to July 15, 2020.

7. Does the relief provided in the Order apply to the filing of information returns? 

8. Does the relief provided in the Order apply to the filing of withholding tax forms and or payments? 

Filing and paying your 2019 Alabama income taxes and your first quarter 2020 Alabama estimated income taxes

1. I haven’t filed my 2019 income tax return that would have been due on April 15, 2020, yet, but I expect to file it by July 15, 2020. What do I need to do? Nothing, except file and pay any tax due with your return by July 15, 2020.  You don’t need to file any additional forms or call the Alabama Department of Revenue to qualify for this automatic tax filing and payment relief. If you expect a refund, you are encouraged to file your return as soon as you can so that you can receive your refund. Filing electronically with direct deposit is the quickest way to get refunds.

2. What if I am unable to file my 2019 income tax return that would have been due on April 15, 2020, by July 15, 2020? If you are an individual, you will automatically be granted an extension to file through October 15, 2020. For corporations, a corporation or an Alabama affiliated group is granted an automatic extension to file its Alabama corporate income tax return consistent with the extension allowed for the taxpayer’s corresponding federal income tax return. For financial institutions, an extension to file will be granted through October 15, 2020, as long as Form ET-8 is filed by July 15, 2020. For an entity filing or paying Alabama Fiduciary Tax an extension to file will be granted through September 30, 2020.  Note: All of these extension dates are for filing only and any amount due must still be paid by July 15, 2020. Interest and penalties will begin to accrue on any unpaid balances on July 16, 2020.

3. What if I am unable to file my 2020 Business Privilege Tax return by July 15, 2020? For an entity filing or paying Alabama Business Privilege Tax an extension to file will be granted through September 15, 2020 for Form PPT and October 15, 2020 for Form CPT.  Note: This extension date is for filing only and any amount due must still be paid by July 15, 2020. Interest and penalties will begin to accrue on any unpaid balances on July 16, 2020.

4. What if I am unable to file my 2019 composite return for nonresident owners/partners by July 15, 2020? For a pass-through entity making payments on behalf of non-residents on a composite return, Form PTE-C, an extension to file will be granted through September 15, 2020. Note: This extension date is for filing only and any amount due must still be paid by July 15, 2020. Interest, and penalties will begin to accrue on any unpaid balances on July 16, 2020.

5. I have already filed my 2019 income tax return that would have been due on April 15 and I owe taxes, but I haven’t paid yet.  What do I need to do to avoid interest and penalties?To avoid interest and penalties, pay your taxes in full by July 15, 2020. Interest and penalties will begin to be charged on July 16, 2020, for any amount remaining unpaid.

6. I have already filed my 2019 income tax return that would have been due on or after April 1, 2020, and scheduled a payment of taxes before July 15, 2020. Will this payment be automatically rescheduled to July 15, 2020?
   The payment will not automatically be rescheduled, you can reschedule or cancel your payment using one of the following methods depending on how it was originally scheduled.

    

   • If you scheduled your payment when you or your tax preparer submitted your return through the e-file system, you can reschedule or cancel your payment by going to https://myalabamataxes.alabama.gov/?link=delaypayment.

   • If you scheduled a payment by credit card or debit card, contact the card processor to cancel the payment.

   • If the payment was scheduled through My Alabama Taxes (MAT), you may be able to modify or cancel your scheduled payment by logging back into your MAT account https://myalabamataxes.alabama.gov/_/.

   • If the extension or estimate payment was scheduled through Alabama Interactive, you can log back in to cancel your payment. At this time the payment date cannot be updated past April 15, 2020, we are working with Alabama Interactive to update the system to allow the Extension and Estimate payments to be rescheduled to July 15, 2020.

7. I am a pass-through entity. What if I file an informational return and taxes are due for my nonresident owners or members on March 15, 2020?  Is the composite income tax return and payment postponed until July 15, 2020?  Yes, any pass-through entity required to file on March 15, 2020, a composite income tax return and remit payments pursuant to §40-18-24.2, Code of Alabama 1975, on behalf of its non-resident members is affected by the COVID-19 pandemic (Affected Taxpayer). The order granting this relief can be accessed here. For these Affected Taxpayers, the due date of March 15, 2020, for filing a composite income tax return and making payments on behalf of its non-resident members is automatically postponed to July 15, 2020. There is no limitation on the amount of the payments that may be postponed. This relief is available solely with respect to composite payments due to be made and composite returns due to be filed on March 15, 2020, by pass-through entities pursuant to §40-18-24.2.

8. My original return was due on March 15, 2020. Do I qualify for an extension of time to July 15, 2020, to file and pay? Except for composite returns and payments due from pass-through entities on March 15, 2020, the extended filing and payment date applies only to returns and payments due on or after April 1, 2020, but before July 15, 2020. Please Note: For payments and returns due on other dates, the Department will consider requests for relief, in the form of penalty waivers and filing extensions, on a case-by-case basis.  Please see https://revenue.alabama.gov/contact/for the appropriate contact information for the tax type for which you are seeking relief.

Update: The Department is encouraging all taxpayers to conduct their business with us through our online services. Take advantage of our website for information and answers to your questions; use My Alabama Taxes (MAT) to file and pay taxes; or call 334-242-1170 to receive additional assistance.

Out of an abundance of caution for your health and wellbeing, as well as our employees, we are asking taxpayers to limit in-person visits to the taxpayer service centers at this time. If you must make a payment in person, these payments can be made at one of our nine Taxpayer Service Centers. All other assistance will be provided remotely via phone or email. Click here for Taxpayer Service Center locations and contact information. (April 1, 2020)

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 localtaxunit@revenue.alabama.gov.

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.

Alaska

Some Department of Revenue Tax Deadlines Extended to July 15, 2020: The Governor has signed SB 241—which extends filing and payment due dates for all tax types except Oil and Gas Property and Production taxes until July 15, 2020. The temporary statute is effective as of April 10, 2020. Returns and payments that were due on March 31, 2020—before SB 241 was signed and effective—were extended through the Governor’s COVID‐19 Disaster Order of Suspension No. 2. The above bill and Administrative Order extend the deadline to file tax returns, file reports, and make payments for all taxes under Alaska Statutes Title 43—except for the Oil and Gas Property Tax and Oil and Gas Production Tax types—as well as all other tax types administered by the Tax Division and Charitable Gaming until July 15, 2020. This extension will apply to returns (includes amended and information returns), reports, and payments due between March 31, 2020 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.

 

Annual license renewal deadlines for Alcoholic Beverages, Fisheries, Mining, Motor Fuel and Tobacco tax programs have not been extended, however any associated license fees can be paid on or before July 15, 2020 without penalty or interest.

If you have any questions, please call the Tax Division at 907‐269‐6620.

The Tax Division also announced that its offices are closed to the public until further notice. This includes both the Juneau and Anchorage offices and lobbies. Please call (907)269-6620 for assistance. Tax Division employees are still working and able to provide customer service over the phone.

The Department of Revenue – Tax Division announces changes in support of the Governor’s COVID‐19 Economic Stabilization Plan; effort temporarily adjusts, suspends key compliance programs: To help people facing the challenges of COVID‐19 issues, the State of Alaska, Department of Revenue –Tax Division announces today a series of steps to assist taxpayers by providing relief on a variety of issues ranging from easing payment guidelines to postponing compliance actions as part of the Governor’s COVID‐19 Economic Stabilization Plan.

The Tax Division has been diligently working to identify ways to provide some relief to our taxpayers. There is current legislation (Senate Bill 241) that was passed and is awaiting the Governor’s signature, to extend the due dates for tax filings and payments for the majority of our state’s tax programs. This legislation will become effective either the day after the Governor signs it, or April 10, whichever date is earliest.

These new changes include issues ranging from postponing certain payments related to Payment Plans to collection and limiting certain enforcement actions. The Tax Division will be temporarily modifying the following activities through July 15, 2020. During this period, to the maximum extent possible, the Tax Division will avoid in‐person contacts. However, the Tax Division will continue to take steps where necessary to protect all applicable statutes of limitations.

Existing Payment Plan Agreements – For taxpayers under an existing Payment Plan, payments due between March 31, 2020 and July 15, 2020 are suspended. Taxpayers who are currently unable to comply with the terms of a Payment Plan Agreement, can suspend payments during this period if they prefer. Furthermore, the Tax Division will not default any Payment Plan Agreements during this period. By law, interest will continue to accrue on any unpaid balances.

New Payment Plan Agreements – The Tax Division reminds people unable to fully pay their state taxes that they can resolve outstanding liabilities by entering into a monthly payment plan agreement with the Tax Division. See tax.alaska.gov for further information.

Collection Activities – Liens and levies initiated by the Tax Division will be suspended during this period.

Automated Liens and Levies – New automatic, systemic liens and levies will be suspended during this period.

Appeals – Appeals employees will continue to work their cases. Although Appeals is not currently holding in‐person conferences with taxpayers, conferences may be held over the telephone or by videoconference. Taxpayers are encouraged to promptly respond to any outstanding requests for information for all cases by the Appeals Team.

Statute of Limitations – The Tax Division will continue to take steps where necessary to protect all applicable statutes of limitations. In instances where statute expirations might be jeopardized during this period, taxpayers are encouraged to cooperate in extending such statutes.

The Tax Division will continue to review ways that we can help support the Governor’s COVID‐19 Economic Stabilization Plan. We recognize the economic impact that COVID‐19 has had on our customers and we want to help were we can. Although many of our employees are teleworking, we will continue to provide the same customer service that is important to us and the State of Alaska. This may include a longer period than normal for us to post payments into Revenue Online. We encourage our customers to set up electronic payments through Revenue Online to streamline the payment process. Here is the link to Revenue Online: https://onlinetax.alaska.gov. We appreciate your patience and support. If you have any questions on any aspects of this communication, please call the Tax Division at 907‐269‐6620.

Arizona

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.

Arkansas

COVID-19: DFA Frequently Asked Questions: The Arkansas Department of Finance and Administration Provided the following list of frequently asked questions and answers.

 

Are Revenue Offices open for business?

Yes, Revenue Offices remain open with limited exceptions. Revenue Offices located within county facilities that have been closed must also close as a result. The list of locations closed to county closures include: Rogers, Gravette, Hamburg, McGehee, Decatur, Corning, Piggott, Mountainburg, Charleston, Walnut Ridge, Cave City, Ash Flat, Benton, Horseshoe Bend, Wynne, Mammoth Spring and Dover. DFA will provide statewide notification if there are any additional changes.

DFA is continuing to receive instruction and guidance from the Governor’s Office, the Arkansas Department of Health, as well as the federal government for purposes of maintaining appropriate safeguards for citizens and employees while continuing to provide service to citizens. The majority of Revenue Office-related services are offered online at https://mydmv.arkansas.gov/. Available online services include registering a vehicle, ordering a replacement driver’s license, and ordering a personalized license plate along with many additional services.

Will DFA extend the April 15 filing deadline or extend the time period in which taxes are paid?

Yes. Governor Hutchinson announced the extension, via executive order, of the 2019 individual income tax filing date and individual income tax payment date from April 15, 2020 to July 15, 2020. This extension includes 2019 returns of Subchapter S Corporations, fiduciaries and estates, partnerships and composite returns. Arkansas did not extend the 2020 estimated tax payments. The Internal Revenue Service has released guidance here. Governor Hutchinson’s order may be found here.

Will DFA extend filing or payment deadlines for other types of taxes?

All taxes must still be reported and paid according to the existing Arkansas law. DFA’s regular business operations also include the ability for individuals and businesses to file and pay their taxes including sales and use, special excise, and more through the Arkansas Taxpayer Access Point (ATAP) at https://atap.arkansas.gov.

Is my state tax refund still being processed?

DFA continues to process refunds. No delays are anticipated. You can check the status of your refund at https://atap.arkansas.gov.

Are DFA’s meetings and public hearings still taking place?

Please check the status with the specific DFA Division hosting the meeting.

Before I make the trip to DFA or a Revenue Office, I’d like to see a full list of services offered online.

• Excise Tax Administration

• File any state tax return

• Business tax registration for all tax types

• Look-up tools for local tax rates

• All statistical information is available

• List of all Tax rules is available

• Legal opinions available

• Administrative hearing decisions are available

• Make online payments using ATAP

Income Tax Administration

• File any state tax return

• Make Online payments using ATAP

• Look up and print 1099-G’s

• Look up Income Tax return and refund status

• All tax return forms are available

• Free e-file of your individual income tax is available

I have an administrative hearing before DFA, but I am avoiding in-person contact – What do I do?

DFA has a commitment to flexible services. If you have a scheduled tax protest hearing in DFA’s Office of Hearings and Appeals, you may request that the Hearing Officer conduct the protest by telephone, on written documents, or delay the hearing until a later date by contacting the Office of Hearings and Appeals at (501) 682-7003. Please note that a business closure hearing cannot be delayed until a later date, but instead can be conducted by telephone.

(April 1, 2020)

COVID-19 Update: Due to the ongoing public health emergency related to the novel Coronavirus/COVID19, the Governor has signed Executive Order 20-09 directing the Department of Finance and Administration to extend the April 15 deadline for filing and payment of the following Arkansas Individual Income Tax returns to July 15, 2020:

• 2019 Individual Income Tax Now Due: 7/15/2020

• 2019 Subchapter S Corporations Now Due: 7/15/2020

• 2019 Fiduciary and Estates Now Due: 7/15/2020

• 2019 Partnership Income Tax Now Due: 7/15/2020

• 2019 Composite Returns Now Due: 7/15/2020

The extension to July 15 is automatic and the taxpayer does not need to file for an extension. The April 15, 2020 to July 15, 2020 period will be disregarded for purposes of calculation of interest and penalties. Interest and penalties will begin to accrue on July 16, 2020. This extension does not apply to 2020 estimated Individual Income Tax payments due on April 15 or June 15.

The following filing and payment deadlines for income tax are not affected:

• 2019 Corporation Income Tax Due: 4/15/2020

• 2020 Estimated Tax Payment Due: 4/15/2020

• 2020 Estimated Tax Payment Due: 6/15/202

No extension is provided in this notice for the payment or deposit of any other type of Arkansas State tax including but not limited to:

• Sales and Use Tax

• Withholding Tax

• Motor Fuels Tax

• Tobacco Products Tax

• Alcohol Excise Tax

California

Extension of Time to File Personal Property Tax Statements To May 31, 2020 Before Penalty Applies: On May 6, 2020, Governor Newsom issued Executive Order N-61-20 extending the tax filing deadline for business personal property statements from May 7, 2020 to May 31, 2020. The deadline extension suspends the 10-percent penalty that would have been imposed on a taxpayer for late filings. Taxpayers impacted by the stay-at-home order, due to the COVID-19 pandemic, will get more time to file their statements with their local County Assessors. The State Board of Equalization (BOE) has issued guidance to County Assessors regarding the deadline extension, the suspension of penalties, and clarifying that since May 31, 2020 falls on a Sunday, a property statement that is mailed and postmarked on the next business day, which is Monday, June 1, 2020, shall be deemed to have been filed timely. This extension applies to all County Assessors in the state of California. At their April 21st Board meeting, the BOE Members lead a Public Policy Hearing on the impact of COVID19 on property assessment deadlines and to get input on other actions that would help taxpayers impacted by the pandemic.

 

COVID-19 FAQs: The FTB recently updated its COVID-19 FAQ Page with the following information regarding the taxability of the economic impact payments, treatment of NOLs, and early withdrawal waiver penalties.

Are the payments that individuals receive from the federal government (i.e., $1,200 [$2,400 for individuals filing a joint return] and $500 per qualifying child) under the recently enacted federal CARES Act subject to California income tax?

No, these payments are not subject to California income tax.

Is the emergency increase in unemployment compensation benefits (in the amount of $600 per week) that individuals receive under the recently enacted federal CARES Act subject to California income tax?

No, these payments are not subject to California income tax.

Are the modifications for net operating losses (NOLs) in the recently enacted federal CARES Act applicable for California income and franchise tax purposes?

No, these modifications for NOLs do not apply for California income and franchise tax purposes.

Does California conform to the federal early withdrawal penalty waivers for distributions from qualified retirement accounts under the recently enacted federal CARES Act?

Yes, the federal early withdrawal penalty waivers for distributions from qualified retirement accounts under the federal CARES Act also applies for California income tax purposes.

Small Business Relief Payment Plans: Effective April 2, 2020, small business taxpayers, 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.

Payment plan requests can be made through CDTFA’s online services system in the coming months. Please bookmark this page and check back for additional updates.

Payment Plan FAQ:

Will a similar plan be created for special tax accounts?

At this point, the program is only available for sales and use tax liabilities.

How will 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.

What if taxpayers owe more than the $50,000 limit on the relief?

The maximum amount that any taxpayer can defer, interest-free under this relief effort, is $50,000. If a taxpayer owes more than $50,000 and needs a payment plan for the amount over $50,000 we 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. (April 2, 2020)

Governor Newsom Announces New Help for Small Businesses & Workers Displaced by COVID-19: Governor Gavin Newsom unveiled a series of new resources to aid small businesses and help California workers who have lost work due to COVID-19.

Beginning tomorrow, California small businesses impacted by the COVID-19 crisis can apply for a loan from the federal government for up to $10 million. Importantly, the program is first-come, first-serve and the Governor encourages all eligible California small businesses to contact their lender to learn more.

Today, the Governor also announced that the state is allocating $50 million to the California Infrastructure and Economic Development Bank for loan guarantees to small businesses to help eliminate barriers to capital for individuals who do not qualify for federal funds, including low wealth and undocumented immigrant communities. The state is also allowing small businesses to defer payment of sales and use taxes of up to $50,000, for up to 12 months.

Additionally, the Governor joined Bitwise Industries and the Kapor Center to launch OnwardCa.org, a new platform connecting displaced California workers with more than 70,000 job opportunities in critical industries.

Earlier this week, Governor Newsom signed an executive order to help small businesses, granting a 90-day extension for small businesses to pay sales taxes.

Governor Newsom also today announced $17.8 million in new state initiatives to support California workers impacted by COVID-19. The allocation will come from Workforce Innovation and Opportunity Act funds with $7.8 million going to the Los Angeles region and $10 million made available statewide.

“The COVID-19 pandemic is having cascading effects for millions of California families and small businesses,” said Governor Gavin Newsom. “Through no fault of their own, more than a million Californians have lost a job and countless more are seeing their businesses fail. California will emerge from this crisis stronger than before, and until then, the state will work overtime with the federal government and private sector to get families the help they need. (April 2, 2020)

Executive Order N-40-20: On March 30, Governor Gavin Newsom signed executive order N-40-20, providing relief for small businesses. The executive order:

• Authorizes the California Department of Tax and Fee Administration to offer a 90-day extension for tax returns and tax payments for all businesses filing a return for less than $1 million in taxes.

• Extends the statute of limitations to file a claim for refund with the CDTFA by 60 days for individuals who or businesses that are unable to file a timely claim for refund as a result of this proclaimed emergency related to COVID-19.

• Extends the statutory deadline to file an administrative appeal with the Office of Tax Appeals by 60 days for individuals who or businesses that are unable to file a timely administrative appeal as a result of this proclaimed emergency related to COVID-19.

These provisions are to remain in effect through July 31, 2020. (March 30, 2020)

FTB Notice 2020-02: The purpose of this Notice is to allow 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.

Claim for Refund: In cases where an applicable statute of limitations to file a timely claim for refund expires during the period of March 12, 2020 through July 15, 2020 (“postponement period”), the FTB will consider the claim timely if filed on or before July 15, 2020. This extension applies to a taxpayer filing a letter claim for refund or filing an amended tax return claiming an overpayment.

Protests of Notices of Proposed Assessment: If the period to file a timely written protest of an NPA expires during the postponement period, the FTB will consider the protest timely if filed on or before July 15, 2020.

Appeals Filed with the Office of Tax Appeals: For time periods that expire during the postponement period to file a timely appeal with OTA challenging FTB’s determination, the appeal will be considered timely if filed with OTA on or before July 15, 2020. For an appeal that a taxpayer has already filed with OTA, this Notice does not impact the 60-day briefing extension OTA announced in OTA Legal Notice 2020-01. However, this Notice does impact the time deadlines outlined in Cal. Code of Regs. Tit. 18, Div. 4.1, section 30203(a) (1) – (9), section 30204 and section 30205.

Petitions for Rehearing Filed with the Office of Tax Appeals: For time periods that expire during the postponement period, a petition for rehearing seeking reconsideration of a written opinion issued by OTA will be considered timely if filed on or before July 15, 2020.

This Notice does not impact the 60-day briefing extension OTA announced in OTA Legal Notice 2020-01 for petitions for rehearing that a taxpayer or the FTB has already filed with OTA. However, this Notice does impact the time deadlines outlined in Cal. Code of Regs. Tit. 18, Div. 4.1, section 30602.

FTB Issuing NPAs to taxpayers: For any statute of limitations to assess additional tax that expires during the postponement period, including for example, any agreed upon time to assess under RTC section 19067, the FTB has until July 15, 2020, to issue a timely NPA.

Both FTB and CDTFA have indicated that they are suspending collection activities. FTB also is directing auditors to be more lenient in granting extensions for IDRs and similar requests.

Small Businesses Now Have Until July 31, 2020 to File First Quarter Returns: In accordance with the Executive Order issued by Governor Newsom last night to expand tax relief for small business taxpayers, the California Department of Tax and Fee Administration (CDTFA) announced today that 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.

In addition to the three-month extension of time to file and pay taxes, the Executive Order issued by Governor Newsom last night also provides business taxpayers with additional time to file claims for refund and appeals to the Office of Tax Appeals. Taxpayers looking to make refund claims with CDTFA during this period will have an additional 60 days to file. Similarly, taxpayers seeking an appeal of a CDTFA tax determination to the Office of Tax Appeals will have 60 additional days to file the appropriate request.

COVID-19 FAQs: FTB has published the following commonly asked questions and responses on its website.

How does FTB define who is “affected by the COVID-19 pandemic”? How would they need to demonstrate this?

All California taxpayers are considered affected taxpayers if they have an income tax return filing or payment due date between March 12, 2020 and July 15, 2020.

Can I visit one of your Field Office Public Counters to make a payment or for tax help?

At this time, all of our Field Office Public Counters in Los Angeles, San Diego, Santa Ana, Oakland and Sacramento are closed. If you need help, use our website to find your answer online. If you need to make a payment, visit Pay by bank account (Web Pay). If you have a MyFTB account, you can also log in and make a bank account payment through Web Pay.

Filing tax returns and income tax payments:

Will my scheduled payment automatically be rescheduled to the tax deadline?

Scenario: You e-filed your 2019 personal income tax return. You scheduled a payment for 4/15/2020 through your bank account. Will your payment be automatically rescheduled to the new tax payment due date, 7/15/2020?

Answer: No, your payment will not be automatically rescheduled to 7/15/2020. Unless you cancel it, the payment will still be processed on the scheduled payment date.

To cancel the payment, contact us:

Phone

e-file Help Desk
(916) 845-0353
Weekdays, 8 AM to 5 PM

You must cancel your payment at least 2 business days before your scheduled payment. If your scheduled payment is on April 15, you must cancel the payment by April 13. We suggest you call us even sooner to cancel your payment.

Visit Pay by bank account (Web Pay) to reschedule your payment. If you have a MyFTB account, you can also log in and make a bank account payment through Web Pay.

Note: If you meet the mandatory e-payment requirement, you must pay electronically.

How do I postpone my scheduled estimated tax payments to the new tax deadline?

Scenario: I already e-filed my 2019 business income tax return. I have scheduled automatic payments from my bank account on the standard due dates. How do I postpone my 1st and 2nd quarter payments to the new deadline on 7/15/2020?

Answer: You must cancel your payments and reschedule new payments.

To cancel the payment, contact us:

Phone

e-file Help Desk
(916) 845-0353
Weekdays, 8 AM to 5 PM

You must cancel your payment at least 2 business days before your scheduled payment. We suggest you call us even sooner to cancel your payment.

Visit Pay by bank account (Web Pay) to reschedule your payment. If you have a MyFTB account, you can also log in and make a bank account payment through Web Pay.

Note: If you meet the mandatory e-payment requirement, you must pay electronically.

What business entities qualify for the July 15, 2020 extended deadline to file and pay taxes?

The new extensions apply to any business entity with a California return or payment due between March 12 and July 15. This includes Corporations, S-Corps, LLCs, Partnerships, and other entity types with returns or payments due during this period.

Visit COVID-19 Extensions to file and pay for more information.

I mailed a check that hasn’t been processed yet. Can I cancel my payment?

We recommend that you do not cancel your check – you may incur fees. We can’t return any checks you’ve sent.

Information returns, extensions to file, and postponement period

Scenario: Does the July 15, 2020 extension to file for any return due during the postponement period of March 12, 2020, through July 15, 2020, apply to information returns?

Answer: Yes, the extension applies to the filing of information returns for any person or entity that made reportable transactions during 2019.

If your original due date to file precedes the first day of the March 12, 2020 postponement period but your extended due date falls within the postponement period of March 12, 2020 to July 15, 2020, is the extended due date now July 15, 2020?

Yes, the filing will be considered timely if you file your return on or before July 15, 2020, the end of the postponement period. If you did not timely pay the tax by the original due date that preceded March 12, 2020 (first date of the postponement period), you will be subject to applicable penalties and interest that continue to accrue during the postponement period.

Statute of limitations, postponements, and COVID-19:

During the COVID-19 pandemic, will FTB still require taxpayers and/or tax representatives to provide statute of limitations waivers containing original signatures?

We will temporarily accept statute of limitations (SOL) waivers with e-Signatures.

Taxpayers and/or their representatives may submit signed SOL waivers to us by one of the following methods:

• Fax the SOL waiver to us with a handwritten signature

• Email a copy of the SOL waiver with a handwritten signature to us from a verified email address

• Upload a scanned copy of the SOL waiver with a handwritten signature to the taxpayers’ MyFTB accounts

• Upload a scanned copy of the SOL waiver with a handwritten signature to cloud storage and provide our staff the link to download the waiver

• New: Utilize a third party service, such as DocuSign, for their Electronic Signature solution

The e-Signatures option is temporary through June 20, 2020. As the June 20, 2020 deadline approaches, we will reevaluate these options.

Statute of limitations and claim for refund

Scenario 1: The statute of limitations for filing a timely claim for refund expires during the postponement period of March 12, 2020, through July 15, 2020. Will the FTB consider a claim filed on or before July 15, 2020, timely?

Answer: Yes. In cases where an applicable statute of limitations expires during this period, we will consider a claim for refund timely if filed on or before July 15, 2020.  This extension applies to a letter claim or an amended return claiming an overpayment of tax.

Scenario 2: The statute of limitations to claim a refund of payments made within one year of the date of the claim expires between the postponement period of March 12, 2020, through July 15, 2020. Does a taxpayer have an extension to file the claim?

Answer: Yes, if the actual statute of limitations to claim a refund under the one-year look-back period expires during this period, we will consider the claim for refund timely if filed on or before July 15, 2020.

Notice of Proposed Assessment and Notice of Action

Scenario 1: FTB issued a Notice of Proposed Assessment (NPA) for additional tax and the 60 days to file a timely written protest expires during the postponement period of March 12, 2020, through July 15, 2020. Does a taxpayer have an extension to file a timely protest?

Answer: Yes, if the period to file a timely protest of an NPA expires during the postponement period, the FTB will consider the protest timely if filed on or before July 15, 2020.

Scenario 2: FTB issued a Notice of Action (NOA) either denying a claim for refund or affirming a tax deficiency and the time to file a timely appeal with the Office of Tax Appeals (OTA) expires between the postponement period of March 12, 2020, through July 15, 2020. Does a taxpayer have an extension to file a timely appeal with OTA?

Answer: Yes, if the time period to file a timely appeal from an NOA providing appeal rights to the taxpayer expires during the postponement period, the appeal will be considered timely if filed with OTA on or before July 15, 2020.

Scenario 3: The statute of limitations for FTB to issue a Notice of Proposed Assessment (NPA) expires during the postponement period of March 12, 2020, through July 15, 2020. Is an NPA issued to a taxpayer on or before July 15, 2020 considered timely under the applicable statute of limitations?

Answer: Yes, the statute of limitations to issue an NPA is one of the time-sensitive acts that may be extended whenever there is a Governor declared state of emergency or a presidentially declared disaster. That means if the applicable statute of limitations to issue an NPA expires during the postponement period of March 12, 2020, through July 15, 2020, FTB has until July 15, 2020, to issue a timely assessment.

Rehearing with the Office of Tax Appeals

Scenario: The taxpayer or FTB disagrees with a written opinion of the Office of Tax Appeals (OTA) and wants to file a petition for rehearing but the 30-day time period to file the petition expires during the postponement period of March 12, 2020, through July 15, 2020. Does a taxpayer or FTB have an extension to file a timely petition for rehearing with OTA?

Answer: Yes, if the time period to file a timely petition for rehearing with OTA expires during the postponement period, the petition for rehearing will be considered timely if filed with OTA on or before July 15, 2020.

BOE COVID 19 Impact to Property Taxes FAQs: The Board of Equalization has published the following frequently asked questions and responses on its website.

Can the Board of Equalization (BOE) extend the April 10, 2020 property tax payment deadline?

Answer: No. Issuing property tax bills and collecting payment is not a function of the BOE. You will need to contact your local county tax collector’s office where the property is located. Your county tax collector may have provisions in place or other resources to assist you with paying your property tax bill during this challenging time; however, county tax collectors do not have the authority to extend the April 10, 2020 due date. For a list of all 58 county tax collectors’ offices and their contact information, please visit the BOE’s website.

Can the California State Controller extend the April 10, 2020 property tax payment deadline?

Answer: No. The State Controller, Betty Yee, issued a press release on March 20, 2020 (here) regarding California property taxes, and it states that the State Controller does not have the authority over property tax collection. Each county treasurer tax-collector has the power to waive penalties and interest for late payments that are beyond the taxpayer’s control (here). Ms. Yee encourages taxpayers to contact their county treasurer-tax collector and indicated that some counties have issued statements about property tax payments due during the COVID-19 health crisis (here).

County buildings are no longer open to the public, what are my property tax payment options? Answer: California Association of County Treasurers and Tax Collectors issued a statement (here) that addresses how payments can be made if the county office is closed to the public.

What if I am unable to make a full property tax payment by April 10, 2020 due to the impact of COVID-19?

Answer: Tax Collectors have the authority to handle specific scenarios where a taxpayer cannot physically pay their taxes on April 10 due to quarantine, illness, or closure of the Tax Collector’s office as a result of COVID-19. The California Association of County Treasurers and Tax Collectors issued a statement (here) that addresses property tax payments.

Can I request a penalty cancellation if I am unable to make a timely property tax payment due to COVID-19?

Answer: Yes. However, a taxpayer cannot request a penalty cancellation from their local county tax collector’s office in advance of the payment’s due date. Beginning on April 11, 2020 (the day the property tax payment becomes delinquent), taxpayers who are unable to pay on time for reasons related to COVID-19 may submit a request for penalty cancellation with the county tax collector’s office where the property is located.

Will property tax amounts be reduced due to economic impact of COVID-19?

Answer: No. Property tax assessments are established on the lien date of January 1 of each year. The property tax amounts currently due for the 2019-2020 Annual Secured Property Taxes have a lien date of January 1, 2019, and therefore, no reduction based on the economic impact of COVID-19 will be made to the current bill. Should you have questions related to decline-in value or business personal property valuations, please contact your local county assessor’s office where the property is located.

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:

Contra Costa	Modoc	San Francisco	Sonoma	Ventura
Glenn	Orange	Santa Clara	Sutter	Yuba
Los Angeles	San Diego	Solano

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

Important news about property tax services and the second installment deadline from the San Francisco Treasurer’s Office: We know that the impacts from the public health emergency and the economic downturn related to COVID-19 have been severe, and our office is committed to helping in any way we can.

 

As the San Francisco shelter-in-place order has been extended and in accordance with state law, the new property tax deadline is May 4, 2020 (the first business day after the shelter-in-place order is lifted). We encourage all property owners who can pay their taxes on time to do so online or via US mail to promote social distancing and ensure prompt payment. This tax revenue helps keep the government running and providing vital services that the public relies on, especially in times like these.

Taxpayers who are unable to pay by this date for reasons related to COVID-19 should submit a request for a penalty waiver request online. Please note that penalty waiver requests will not be accepted until after the property tax deadline. (April 3, 2020)

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.

California – San Mateo County

Second Installment 2019-20 Property Taxes: On April 6, San Mateo County Treasurer-Tax Collector Sandie Arnott issued the following statement regarding the April 10 property tax deadline.

 

In my continuing effort to work through the many challenges of tax collection during COVID19, I wanted to provide an update based on the extension of the Shelter in Place order as directed by our Public Health Officer.

First and foremost, I hope you and your families are safe and healthy and maintaining the Shelter in Place directive to help us flatten the curve. I’d also like to thank all the taxpayers who have paid the 2nd installment of property taxes timely, THANK YOU SO MUCH! During this pandemic, we find ourselves in a heightened reliance on services such as healthcare, public safety, social services and sanitation. It is vital that we ensure the funding they require to continue providing these services is collected on time to enable the County to apportion these much-needed dollars to them in April. Additionally, it is important that we have the funds required to pay debt service on school bonds due in April & May in order to prevent a negative credit rating that could impact future bond issues. For those taxpayers who have not yet paid the 2nd installment, if it is possible for you to submit your payment by April 10th, it would be much appreciated. Taxpayers may submit payment through our optional payment methods online, via mail or placed in the drop-box attached to our building location at 555 County Center. See our website for pictures of the location.

On March 24th, I submitted a Resolution to the Board of Supervisors to approve Revenue & Taxation Code 2619. This code section states that only the Board of Supervisors has the authority to close the office of the Treasurer-Tax Collector to walk-in members of the public and if closed over a due date, that due date extends to the next business day. It was important to have this Resolution in place to protect taxpayers from penalty assessments in the event opening the tax office to the public was not feasible on April 10th.

Following the recent order of the Public Health Officer to extend the Shelter in Place to May 3rd, discussions with members of the Board of Supervisors and the County Manager were held regarding the possibility of opening the tax office on April 10. Together, we decided for health reasons, it would be in the best interest of the public and our

Employees to remain closed. Having this Resolution approved and in place will now extend the final due date of the 2nd installment to the next business day that we will open to the public. Based on this current direction, we would anticipate being open to the public to accept the 2nd installment of property tax payments, without penalty, on Monday, May 4th. Payments would need to be made in the office on this date no later than 5:00pm to avoid a penalty. The Resolution can be found on our websites: tax.smcgov.org and treasurer.smcgov.org

PLEASE NOTE: Not all counties have adopted this Resolution. If you own property in other counties, contact them to confirm the final due date applicable.

I again wish to stress that during this unprecedented situation, I am very aware that many taxpayers have been individually and substantially impacted by this pandemic. I continue to work on processes to enable me to best assist you to the fullest extent the law allows should you find yourself unable to make your 2nd installment payment and are assessed a penalty and fees. As a reminder, penalty waiver appeals cannot be requested until after penalties are assessed. Together with the State Controller’s office, an application and list of acceptable support documentation specific to COVID 19 has been developed and anticipated to be used by all California counties to maintain consistency.

Colorado

Colorado Emergency Rule Adoption: On April 7, 2020, the Colorado Department of Revenue, Division of Taxation, adopted a temporary emergency rule to comply with Executive Order D 2020 023, which extends the filing and remittance deadline for certain sales taxes. Executive Order D 2020 023 specifically directs the Department to promulgate and issue emergency rules to extend the April 20, 2020 filing and remittance deadline to May 20, 2020. Furthermore, the April 20 due date will pass before permanent rules could be promulgated. Thus, emergency rules are necessary.

 

The emergency rule, as well as the statement of emergency justification and adoption, can be accessed using the hyperlink below and can be found on the Department’s website under “Emergency Rules.” The emergency rule will be published in the Colorado Register on May 10, 2020. Emergency Rule 39-26-105–5

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.

Connecticut

COVID-19 Extension of Deadlines for Filing Administrative Protests and Suspension of Deadlines for Filing Tax Appeals: Consistent with Governor Ned Lamont’s Executive Order No. 7M, the Connecticut Department of Revenue Services (DRS) hereby extends by an additional ninety (90) days the sixty (60) day filing requirement for taxpayers seeking to protest a notice of assessment or proposed disallowance of a claim for refund. Additionally, DRS is providing guidance to taxpayers regarding the impact of Governor Lamont’s Executive Order No. 7G and various Connecticut Judicial Branch orders on the statutory deadlines for filing tax appeals.

 

Filing an Administrative Protest – Ninety (90) Day Extension: Through Executive Order 7M, Governor Lamont has authorized the Commissioner of Revenue Services (“Commissioner”) to extend by ninety (90) days certain statutory deadlines, as the Commissioner deems reasonably necessary to respond to the novel coronavirus (“COVID-19”) or its effects. By law, taxpayers have sixty (60) days to file an administrative protest of a notice of assessment or proposed disallowance of a claim for refund to the Department’s Appellate Division. The ability of taxpayers or their representatives to file such a protest may have been impacted by COVID-19 since March 10, 2020, the date the Governor’s Declaration of a Civil Preparedness and Public Health Emergency. Accordingly, in order to allow anyone who has been affected by COVID-19 a meaningful opportunity to protest a notice of assessment or proposed disallowance of a claim for refund to DRS’ Appellate Division, the Commissioner hereby extends the due date of any protest of a notice of assessment or proposed disallowance of a claim for refund by ninety (90) days. This extension of time to file is applicable to any notice of assessment or proposed disallowance of a claim for refund dated on or after January 10, 2020 through May 31, 2020.

Filing a Tax Appeal – Suspension of the Thirty (30) Day Statute of Limitations: Through Executive Order 7G, on March 19, 2020, Governor Lamont suspended non-critical court operations, including deadlines relating to service of process, court proceedings, and court filings for the duration of the Civil Preparedness and Public Health Emergency. Additionally, through issuance of orders dated March 12, 2020, March 24, 2020, and March 30, 2020, the Connecticut Courts have (1) limited operations to handling only top priority cases, (2) suspended and amended Connecticut Practice Book Rules, and (3) suspended all deadlines in civil scheduling agreements. By law, taxpayers have thirty (30) days to initiate a tax appeal of a final determination letter by serving said appeal on the Commissioner or Office of the Attorney General. The ability of taxpayers or their representatives to initiate a tax appeal may have been impacted by COVID-19. Accordingly, consistent with Governor Lamont’s Executive Order 7G and the Connecticut Courts’ orders, as of March 19, 2020, the thirty (30) day requirement for serving a tax appeal on the Commissioner or Office of the Attorney General has been suspended. This does not apply to any appeal required to be serviced prior to March 19, 2020.  Further guidance will be provided upon issuance by Governor Lamont or the Connecticut Courts. (May 8, 2020).

DRS COVID-19 Response: FAQs: (Issued: March 25, 2020 / Updated: April 2, 2020)

General Information

Will DRS be available to assist taxpayers during the COVID-19 outbreak?

Yes. DRS employees are answering emails and phone calls; processing returns, payments, and refunds; and completing other essential agency functions.

How can I contact DRS during the COVID-19 outbreak?

If you have a question or need assistance, visit the DRS website for many answers and updated information. Taxpayers may also email DRS at drs@po.state.ct.us, or call DRS during regular business hours (between 8:30 a.m. to 4:30 p.m.) at 860-297-5962.

Are DRS walk-in services available?

No. Walk-in services at DRS branch offices in Hartford, Waterbury, Norwich and Bridgeport have been suspended until further notice.

Sales and Use Tax

Has DRS extended the filing and payment deadlines for sales tax returns?

Yes, within the parameters outlined below.

What small business taxpayers qualify for this relief? 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.

How does a taxpayer determine if it is a qualified small business? 
Taxpayers are required to utilize a calendar year look back period of January 1, 2019, through December 31, 2019. Any taxpayer that reported $150,000 or less in tax during that period qualifies for the relief.

What returns are covered by this extension?

• 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.

I filed my sales tax return and paid my taxes that are due on March 31, 2020, can DRS return the payment so I can take advantage of the extended May 31, 2020 due date?

No. If you scheduled a payment through the DRS Taxpayer Service Center (TSC), you can only cancel a payment two or more days prior to the scheduled payment date.

Plastic Bag Fee

Has the Plastic Bag Fee been suspended?

Yes. Pursuant to Executive Order No. 7N issued by Governor Lamont, the Plastic Bag Fee is suspended from March 26, 2020, through May 15, 2020.

When are retailers required to begin collecting the Plastic Bag Fee again? 

Retailers will be required to collect the Plastic Bag Fee again starting May 16, 2020, unless otherwise notified.

Are retailers required to remit the Plastic Bag Fees that they collected through March 26, 2020?

Yes. Any retailer that collected Plastic Bag Fees through March 26, 2020, must remit those fees to DRS on the applicable sales and use tax return (Form OS-114).

Does sales tax apply if a retailer charges a customer for a plastic bag during the temporary suspension? 

Yes. If a store charges a customer a fee for a plastic bag, the charge for the bag is subject to sales tax. Similarly, if a store charges a customer for a paper bag or a reusable bag, the charge for the paper bag or a reusable bag is also subject to sales tax.

Connecticut Earned Income Tax Credit (EITC)

I received a DRS letter requesting additional documentation to support my Connecticut EITC claim. Has DRS extended the 30-day deadline in the letter to submit this documentation?
Yes. The deadline to submit additional documentation for a Connecticut EITC claim has been extended to July 15, 2020.

Gift Tax

Has DRS extended the filing and payment deadline for gift tax returns reporting gifts made during taxable year 2019?

Yes. The filing and payment deadline for gift tax returns reporting gifts made during taxable year 2019 is automatically extended from April 15, 2020, to July 15, 2020. Gifts made during taxable year 2019 are reported on Form CT-706/709. This extension does not apply to estate tax.

Business Income Tax

Has DRS extended the filing and payment deadlines for annual state business tax returns?

Yes. On March 16, 2020, DRS announced that the due date for the annual state business tax returns listed below was extended. The due date for returns and payments due between March 15, 2020, and June 1, 2020, for the following tax types was extended:

• Corporation Business Tax;

• Unrelated Business Income Tax; and

• Pass-Through Entity Tax.

What is the extended due date for returns and payments of corporation business tax (Form CT-1120 and Form CT-1120CU)?

The due date for filing returns is extended 30 days and payments are due on or before June 15, 2020.

What is the extended due date for returns and payments of unrelated business income tax (Form CT-990T)?

The due date for filing returns is extended 30 days and payments are due on or before June 15, 2020.

What is the extended due date for returns and payments of the pass-through entity tax (Form CT-1065/CT-1120SI)?

The due date for filing returns is extended 30 days and payments are due on or before June 15, 2020.

Was the due date extended for estimated payments of corporation business tax, unrelated business income tax, and pass-through entity tax normally due between March 15, 2020, and June 1, 2020?

No.

Does the business income tax extension for corporation business tax, unrelated business income tax, and pass-through entity tax apply to fiscal year end filers with a due date between March 15, 2020, and May 31, 2020?

Yes. The extension applies to corporation business tax, unrelated business income tax, and pass-through entity tax returns that would otherwise be due between March 15, 2020, and May 31, 2020.

Do the extended business income tax filing and payment deadlines apply to returns already on extension?

No.

Has the deadline for filing an amended 2016 Form CT-1120, Form CT-1120CU, Form CT-990T, or Form CT-1065/CT-1120SI been extended?

No.

Individual Income Tax

Has DRS extended the filing and payment deadlines for individual income tax returns?

Yes. On March 20, 2020, DRS announced that the due date for 2019 individual income tax returns and payments was extended to July 15, 2020, for Forms CT-1040, CT-1040NR/PY, and CT-1041.

Has DRS extended the filing and payment deadlines for individual income tax return estimates?

Yes. The deadline to remit first and second quarter estimated payments for taxable year 2020 has been extended to July 15, 2020.

Does the extension apply to withholding tax?

No.

Has DRS extended the filing and payment deadlines for trusts and estates that file Form CT-1041?

Yes. Form CT-1041 returns and payments with a due date of April 15, 2020, have been extended to July 15, 2020.

How do I check the status of my state income tax refund?

To check the status of your state income tax refund, click here.

Will my refund be delayed? 

The quickest way to receive your refund is to file electronically.  Unless we need to ask you for additional information to verify what you submitted on your return, DRS does not anticipate processing delays.

I filed my return and paid my taxes before April 15, 2020, can DRS return the payment so I can take advantage of the extended July 15^th due date?

No. Once your return is filed and paid the payment cannot be returned.

I already filed my 2019 individual income tax return that would have been due on April 15, 2020, and scheduled a payment of taxes for April 15, 2020. Will this payment be automatically rescheduled to July 15, 2020?

No. If you do nothing, the payment will be made on the date you selected. To cancel and reschedule your payment:

• If you scheduled a payment through the DRS Taxpayer Service Center (TSC): log back into your account and select “Cancel Payment”. You can cancel a scheduled payment until the TSC processes the payment, generally two business days before the payment date.

• If you scheduled a payment as part of filing your tax return (authorizing an electronic funds withdrawal): you may cancel your payment by emailing DRS at efile@po.state.ct.us. Email DRS to initiate a payment cancellation as soon as possible, but no less than two business days prior to the scheduled payment date. Include: your full name, last 4 digits of your social security number, and dollar amount of payment.

• If you scheduled a payment by credit card or debit card: contact the card processor to cancel the card payment.

After you cancel your payment, you must reschedule a new payment to go out by the July 15, 2020 due date. You may make this payment using the TSC or use a payment option listed on the DRS Income Tax Payment Options webpage.

Has the deadline for filing an amended 2016 Form CT-1040, CT-1040NR/PY, or CT-1041 been extended?

No.

State Extends Filing and Payment Deadlines for Sales Tax and Room Occupancy Tax: At the direction of Governor Ned Lamont, and in recognition of the impact of COVID-19, the Department of Revenue Services (DRS) is providing immediate administrative tax relief to Connecticut small businesses. DRS is granting an automatic extension of filing and payment deadlines for Sales Tax and Room Occupancy Tax.

What small business taxpayers qualify for this relief?

• 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.

How does a taxpayer determine if it is a qualified small business?

• Taxpayers are required to utilize a calendar year look back period of January 1, 2019, through December 31, 2019. Any taxpayer that reported $150,000 or less in tax during that period qualifies for the relief.

What returns are covered by this extension?

• 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.

(March 30, 2020)

Connecticut’s Single-Use Plastic Bag Fee Temporarily Suspended: The Connecticut Department of Revenue Services (DRS) is notifying Connecticut retailers that effective immediately retailers are not required to collect the fee through May 15, 2020. (March 27, 2020)

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

Delaware Revenue Division Memo on Filing Extensions: “[A]ll final corporate income tax returns are due on the date that the corresponding federal return is due. By operation of law, all Delaware final corporate income tax returns (forms 1100) are now due on July 15, 2020 consistent with the corresponding federal return due date.” The relief outlined in this Memo will be automatically provided to all effected taxpayers as follows:

 

• Corporate tentative returns that would be due on April 15, 2020 will now be due on July 15, 2020.

• Personal income tax returns that would be due on April 30, 2020 will now be due on July 15, 2020. If a taxpayer needs additional time beyond the extended due date, taxpayers may request an extension requesting additional time to file through Revenue’s online system. This will provide an automatic extension of time to file to October 15, 2020.

• Estimated personal income tax payments that are due on April 30, 2020 are extended to July 15, 2020. Please note that the second quarter payments remain due on June 15, 2020.

• Fiduciary income tax returns that are due on April 30, 2020 will now be due on July 15, 2020. If a taxpayer needs additional time beyond the extended due date, the Division of Revenue reminds all taxpayers that they may file an extension requesting additional time to file. This will provide an automatic extension of time to file to October 15, 2020.

“Additionally, throughout the COVID-19 Emergency, DOR continues to work with taxpayers who owe outstanding balances.” (March 23, 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

District will not seek nexus based on at-home employees, OTR Tax Notice 2020-05: The Office of Tax and Revenue will not seek to impose corporation franchise tax or unincorporated business franchise tax nexus solely on the basis of employees or property used to allow employees to work from home (e.g., computers, computer equipment, or similar property) temporarily located in the District during the period of the declared public emergency and public health emergency, including any further extensions by the Mayor.

 

OTR Tax Notice 2020-03: COVID-19 Emergency Income and Franchise Tax Extension: The District of Columbia has extended the deadline to file and pay all income, partnership and franchise tax returns until July 15, 2020. This extension applies to all D-20, D-30, D-40, D-41, D-40B, and D-65 tax filers, and includes combined return filers. This extension is automatic and does not require taxpayers to apply.

Taxpayers may continue to request an extension to file their income, partnership and franchise tax returns to October 15, 2020. All such extension requests must be made by filing the applicable extension form with OTR by July 15, 2020 and making all required payments for tax year 2019 by July 15, 2020.

The deadlines to file Forms D-20ES, D-30ES, D-40ES and D-41ES and to make estimated tax payments remains unchanged. The first quarter payments are due April 15, 2020, and the second quarter payments are due June 15, 2020.

For additional information, please contact OTR’s Customer Service Center at e-services.otr@dc.gov or (202) 759-1946.

District Office of Tax and Revenue: COVID-19 updates available online, here.

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.

2019 Tax Filings and Payment Deadline Extended to July 15, 2020: “[T]he deadline for taxpayers to file and pay their 2019 District of Columbia individual and fiduciary income tax returns … partnership tax returns … and franchise tax returns … is extended to July 15, 2020. This means taxpayers will have an additional 90 days to file and pay from the original deadline of April 15, 2020.” (March 23, 2020)

Florida

Department of Revenue Extends March Sales Tax Due Dates for Adversely Affected Taxpayers (Order #20-52-DOR-002): On March 26, Department of Revenue Executive Director Jim Zingale issued an emergency order to extend certain filing deadlines for Florida businesses. This action is taken to provide short-term relief to taxpayers while recognizing the requirement for a balanced state budget. Sales tax, Florida’s largest state tax, produces $26.2 billion annually and funds more than 78% of Florida’s General Revenue programs

 

Sales and use tax, as well as other related tax returns and payments, are normally due on the first day of the month and are late after the twentieth day of the month. Order of Emergency Waiver/Deviation #20-52-DOR-002 outlines:

• Taxpayers who have been adversely affected by COVID-19, have an extended due date to April 30, 2020 for sales and use tax, as well as other related taxes, collected in March.

• Taxpayers who have not been adversely affected by COVID-19 continue to file and remit taxes no later than the normal due date of April 20.

• Taxpayers who were unable to meet the March 20 due date will have penalty and interest waived for taxes collected in February if the taxes are reported and remitted by March 31, 2020.

Adversely affected taxpayer means:

• The business closed in compliance with a state or local government order and had no taxable sales transactions as a result; or

• The business experienced sales tax collections in March 2020 that are less than 75% of March 2019 sales tax collections; or

• The business was established after March 2019; or

• The business is registered with the Department to file quarterly.

Taxpayers who fall within the definition of adversely affected but who are able to file and pay on time are encouraged to do so.

Department of Revenue Extends Property Tax Payment Due Date from March 31 to April 15 (Order #20-52-DOR-01): Also on March 26, Department of Revenue Executive Director Jim Zingale issued an emergency order to extend the final due date for property tax payments for the 2019 tax year. The Department also extended the due date to file railroad, railroad terminal, private car and freight line and equipment company property tax returns.

Order of Emergency Waiver/Deviation #20-52-DOR-01 applies to all 67 Florida counties. Property tax is normally due by March 31 in the year following the year the taxes are assessed. The Department waives the due date so that payments remitted by April 15, 2020, for the 2019 tax year will be considered timely paid. Property tax returns for railroad, railroad terminal, private car and freight line and equipment company property are normally due by April 1. Returns will be timely filed if filed by April 15, 2020.

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

Georgia Coronavirus Tax Relief FAQs:

 

What payments and returns does the extension to pay and file apply to?

Georgia income tax payments and GA income tax returns due on or after April 15, 2020 and before July 15, 2020.

How long is the extension to pay and file?

The extension is until July 15, 2020.

Does the extension also apply to Georgia estimated income tax payments due on or after April 15, 2020 and before July 15, 2020?

Yes, Georgia estimated income tax payments due on or after April 15, 2020 and before July 15, 2020 are also extended to July 15, 2020.

Do taxpayers need to file any additional forms or call the Department to qualify for this automatic tax filing and payment relief?

No.

I filed my 2019 Individual Income tax return with a balance due to be withdrawn and want to change my payment date, can this be done?

You may call 877-423-6711 to have your scheduled payment cancelled.

You will have to initiate a separate payment either through GTC, check or credit card on or before the July 15, 2020 due date, to avoid late pay penalty and interest.

Does the extension apply to the net worth tax that is included on applicable income tax returns?

Yes.  It also applies to initial net worth tax returns due on or after April 15, 2020 and before July 15, 2020.

Does the extension apply if I am a fiscal year filer and my state income tax return is due on or after April 15, 2020 and before July 15, 2020?

Yes, if your state income tax return for your fiscal year ending during 2019 is due on or after April 15, 2020 and before July 15, 2020, your due date is postponed to July 15, 2020.  This would apply regardless of whether that is the original due date or the due date on extension.

What if I am unable to file my affected state income tax return by July 15, 2020?

You must request an extension by July 15, 2020.  If a federal extension is filed, Georgia will accept it and if one is not filed, Georgia Form IT-303 should be filed.  If you file an extension by July 15, 2020, your tax return will be due on the normal extended due date (not 3 months after the normal extended due date).  To avoid interest and penalties, by July 15, 2020 pay the tax you estimate as due with the appropriate Georgia form (corporations and those filing a composite return use Form IT-560C, individuals and fiduciaries use Form IT-560).

If my employees are working from home due to the Corona Virus pandemic, does that modify my company’s nexus determination or the amount of my employee’s Georgia wages and therefore my company’s Georgia income tax withholding obligation?

In response to the remote work requirements associated with the Coronavirus pandemic, the Department will not use someone’s relocation that is the direct result of temporary remote work requirements arising from and during the Coronavirus pandemic, as the basis for establishing Georgia nexus or for exceeding the protections provided by P.L. 86-272 for the employer of the temporarily relocated employee.  Also, if the employee is temporarily working in Georgia, wages earned during this time period would not be considered Georgia income and therefore the company is not required to withhold Georgia income tax.

The temporary protections provided under this guidance will extend for periods of time where:

1. There is an official work from home order issued by an applicable federal, state or local government unit, or

2. Pursuant to the order of a physician in relation to the COVID-19 outbreak or due to an actual diagnosis of COVID-19, the employee is working at home.  Additionally, the subsequent 14 days are included in the time period to allow for a return to normal work locations.

Also:

1. If the person remains in Georgia after the temporary remote work requirement has ended, the normal rules for determining nexus, the employee’s wages, and the employer’s income tax withholding obligation will apply.

2. A company may not assert that solely having a temporarily relocated employee in Georgia, under the circumstances described above, creates nexus for the company or exceeds the protections of P.L. 86-272 for the company.

3. Wages paid to a nonresident employee that normally works in Georgia but that is temporarily working in another state, under the circumstances described above, would be considered Georgia wages and the employer should continue to withhold Georgia income taxes.

For purposes of computing Georgia income does Georgia follow any provisions of the CARES Act?

Not currently. The Cares Act as well as the 2019 Federal changes must be considered for adoption by the Georgia General Assembly. The current legislative session was put on hold due to the Corona Virus and no action has yet been completed.

Has the April 15, 2020 deadline for making a deductible contribution to Georgia’s 529 Plan (Path2College 529 Plan) been extended to July 15, 2020?

Yes. As such a contribution made by July 15, 2020 may be deducted on an individual’s 2019 Georgia income tax return, subject to the normal dollar, etc. limitations.

Does this also provide the Department additional time to perform time sensitive acts (assess, etc.) in the same manner as the Internal Revenue Service?

Yes, a 30-day postponement is being granted for the Department to perform certain time sensitive acts if the last date for the performance of the action is on or after April 15, 2020 and before July 15, 2020.  This includes persons that are under audit or examination, those who have filed a protest or appeal, or those who filed a refund claim as provided in Georgia Code Section 48-2-49(e). As a result of the postponement of the time to perform time-sensitive actions, the 30-day period following the last date for the performance of time-sensitive actions will be disregarded in determining whether the performance of those actions is timely.

Does the relief extend the statute of limitations to file a refund or to claim certain credits for a prior year income tax return (for example a 2016 return that was originally due on April 15, 2017)?

Yes. Any statute of limitations relating to claiming prior year income tax refunds or credits that would have expired from April 15, 2020 and before July 15, 2020 is now extended to July 15, 2020.

Does the relief apply to the penalty for failing to pay estimated tax payments timely during 2019?

No.

Does the extension apply to Georgia sales tax collected?

No.

Does the extension apply to Georgia income tax withheld by businesses from their employees or to other amounts required to be withheld?

No.

Does the extension apply to other Georgia state taxes due?

No.

Are any other deadlines extended?

In addition to the tax deadline extension, all vehicle registrations that expire between March 16, 2020 and May 14, 2020 have been extended through May 15, 2020. This extension applies to all annual registrations, including personal passenger vehicles, commercial vehicles, vehicles registered in the International Registration Plan (IRP), and Temporary Operating Permits (TOPs) issued at the time of a vehicle purchase. Registrations that expired before March 16, 2020 do not qualify for this extension.

Georgia Extends Additional Tax Deadlines: The Georgia Department of Revenue (DOR) announced on April 16, 2020 that additional tax deadlines have been extended in conformance with the US Treasury Department and Internal Revenue Service (IRS).

Estimated Payments

As announced a few weeks ago, the state estimated income tax payments due on April 15, 2020 were extended to July 15, 2020. As of today, the state estimated income tax payments due on June 15, 2020, have also been extended to July 15, 2020 (as well as any other estimated income tax payment due after April 15, 2020, and before July 15, 2020).

Additional Filers

Any income tax return and payment due after April 15, 2020 and before July 15, 2020, is now due on July 15, 2020. This extension adds additional corporate filers, as well as other fiscal year income tax filers, to the relief announced in March.

Refund Claims for Previous Tax Years

Additionally, the statute of limitations to file a refund claim for a previous tax year has been extended to July 15, 2020, for refund claims that would have expired from April 15, 2020, and before July 15, 2020. Per state law, taxpayers have three years to amend an original return and this extension provides a few months of additional relief for taxpayers planning to amend their 2016 income tax returns.

Extension for Time Sensitive Department Actions

Finally, mirroring the IRS, a 30-day extension has been given to DOR to perform certain time sensitive actions if the last date for the performance of the action is on or after April 15, 2020, and before July 15, 2020. This includes actions regarding taxpayers who are under audit or examination, those who have filed a protest or appeal, or those who filed a refund claim for a previous tax year as provided in O.C.G.A. 48-2-49(e).

Just like the deadline extension announced in March, taxpayers are automatically eligible for this relief and do not need to file any additional paperwork with the Department.

In accordance with state law, the Revenue Commissioner may extend these deadlines since there has been a presidentially declared disaster.

As a reminder, no extension has been provided for the filing, payment, or deposit of any other type of state tax (including employee withholding and sales tax) or for the filing of any state information returns.

Georgia Income Tax Deadline Extended: “Governor Brian P. Kemp announced on Monday that the Georgia Department of Revenue (DOR), in conformance with the US 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.”

“Like the IRS, the relief provided by this extension is for state income tax payments and state income tax returns due on April 15, 2020. This also includes state estimated income tax payments due on April 15, 2020, for the taxpayer’s 2020 taxable year.” (March 25, 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)

Hawaii

TAX INFORMATION RELEASE NO. 2020-02 (REVISED): Hawaii Tax Treatment of Various Federal COVID-19 Relief Programs and Payments The purpose of this Tax Information Release (TIR) is to provide information about Hawaii tax treatment of the various COVID-19 relief programs and payments that the federal government has provided under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

 

Federal Income Tax Treatment 

• Economic Impact Payments: Economic Impact Payments are not considered gross income and are therefore not subject to federal income tax. Section 2201 of the CARES Act provides payments to qualifying individual taxpayers of up to $2,400, depending on adjusted gross income and filing status. Qualifying taxpayers may also receive $500 per qualifying child.

• Unemployment Compensation: Under existing law, unemployment compensation is included in gross income. The CARES Act does not provide for any special tax treatment for these amounts, thus, payments received under additional unemployment compensation are subject to federal income tax.

• Pandemic Unemployment Assistance (PUA) under Section 2102 of the CARES Act provides up to $648 per week for those who ordinarily may not be eligible for unemployment benefits, such as business owners, self-employed persons, independent contractors, and others, that are out of business or whose services are significantly reduced as a direct result of the COVID-19 pandemic.

• Federal Pandemic Unemployment Compensation (FPUC) under Section 2104 of the CARES Act also provides an additional $600 per week of unemployment compensation for employees who are eligible for unemployment benefits. Small Business Loans: • The Paycheck Protection Program (PPP) under Section 1102 of the CARES Act provides forgivable loans to small businesses. The receipt of the loan funds, including PPP funds, are not subject to income tax. Regarding forgiveness of the PPP loans, Section 1106(i) of the CARES Act deems forgiven PPP debt that would otherwise be included in gross income, to be excluded from gross income. Thus, loans forgiven under the PPP are not subject to federal income tax.

• Economic Injury Disaster Loan Emergency Advances (EIDL Grant) are loan advances of up to $10,000 made to small businesses under Section 1110 of the CARES Act. The EIDL Grant does not need to be repaid. The CARES Act does not provide any special tax treatment for these amounts, thus, the EIDL Grant is included in gross income and is subject to federal income tax. 1 Coronavirus Aid, Relief, and Economic Security Act. Pub. L. No. 116-136. Tax Information Release No. 2020-02 May 4, 2020 Page 2 of 3

• Economic Injury Disaster Loans (EIDL) provided under Section 7 of the Small Business Act2 allows for loans up to $2,000,000 in some cases. The receipt of the loan funds, including EIDL funds, are not subject to federal income tax. The CARES Act does not provide any special tax treatment for EIDLs.

Hawaii Income Tax Treatment 

Under existing law, Hawaii’s income tax treatment is identical to the federal income tax treatment in most cases. Therefore, the Economic Impact Payments and loan proceeds from the PPP and EIDL programs are not subject to Hawaii income tax. Payments under the PUA and FPUC programs are subject to Hawaii income tax. Regarding the forgiveness of PPP loans, in general the forgiveness of a loan or cancellation of debt results in the amount that is forgiven being included in gross income. As discussed above, the CARES Act provides that forgiven PPP loan proceeds are not included in gross income for federal income tax purposes. For this special treatment to apply for Hawaii income tax purposes, the treatment must be adopted by the enactment of a Hawaii law. Thus, under current law, forgiven PPP loans are subject to Hawaii income tax. However, the Department of Taxation intends to recommend to the Hawaii State Legislature that Hawaii conform to the federal treatment of PPP loan forgiveness.

General Excise Tax Treatment 

Under existing law, unemployment compensation paid to employees and the receipt of loan funds, such as funds from PPP loans and EIDLs, are not subject to general excise tax (GET). The general rule is that amounts received by a business that replace income are subject to GET. Thus, grants or other payments that replace or supplement income are normally subject to GET. However, in light of the severity of the economic impact of the COVID-19 pandemic, GET will not be imposed on payments received under PUA, loan amounts forgiven under PPP, and EIDL Grants. These amounts will be treated as exclusions from gross receipts and should not be reported on GET returns. A table summarizing State and federal tax treatment of CARES Act funds can be found at the end of this release. Additional information is available by calling the Technical Section at (808) 587-1577, or by email at tax.technical.section@hawaii.gov. (May 4, 2020).

Relief for Taxpayers Affected by the COVID-19 Emergency: “The Department has determined that any person with a 2019 State income tax filing requirement or payment due from April 2020, 2020 to June 20, 2020, is affected by the COVID-19 pandemic for purposes of the relief described in this Announcement (Affected Taxpayer).

For all Affected Taxpayers, the due date for filing 2019 State income tax returns due from April 20, 2020 to June 20, 2020 is postponed to July 20, 2020. For all Affected Taxpayers, the due date for making 2019 State income tax payments due from April 20, 2020 to June 20, 2020 is postponed to July 20, 2020. The relief provided in this Announcement applies solely to returns and payments for Affected Taxpayer’s 2019 taxable year due from April 20, 2020 to June 20, 2020.” “The filing deadline for the 2019 taxable year for all Income Taxpayers is extended to July 20, 2020.” “Individual Income Taxpayers expecting a refund should file as soon as possible. They are granted an automatic extension to file by October 20, 2020.”

“Interest, penalties and additions to tax for failure to file the returns or make the Hawaii income tax payments postponed by this Announcement will not accrue from April 20, 2020 to July 20, 2020. Interest, penalties and additions to tax with respect to such postponed Hawaii income tax filings or payments will begin to accrue on July 21, 2020, if not paid by July 20, 2020.” (March 23, 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)

Idaho

Idaho COVID-19 FAQs: The Idaho State Tax Commission has updated its website to include a list of frequently asked questions and responses.

 

Idaho Extends Income Tax Filing Application Deadline: Governor Brad Little declared that “[t]he state income tax filing deadline for all Idaho taxpayers set in Idaho Code section 63-3032 is hereby suspected for sixty (60) days so that the tax filing deadline is June 15, 2020 [and that the] state income tax payment deadline for all Idaho taxpayers set in Idaho Code section 63-3034 is suspended for sixty (60) days, without penalties and interest, regardless of the amount owed, so that the tax payment deadline is June 15, 2020.” (March 23, 2020)

Illinois

Changes to Estimated Payment Requirements due to COVID-19 Virus Outbreak (FY 2020-26): The Illinois Department of Revenue issued an informational bulletin detailing the following changes to the state’s estimated payment requirements in light of the COVID-19 pandemic:

 

Estimated Payment Allowances:

Due to the COVID-19 virus pandemic and the subsequent Emergency Declaration of Disaster by Governor JB Pritzker, the filing and payment deadline for income tax returns due April 15, 2020 was extended to July 15, 2020. As a result, a significant number of taxpayers will not be able to accurately calculate and pay their 2020 Illinois estimated income tax.

Since taxpayers may not know their prior year’s tax liability if they do not file by the original due date, the Department is providing for an additional option upon which taxpayers can base their 2020 estimated tax payments. For 2020, estimated tax payments can be based upon either:

1. 100 percent of their estimated liability for the year 2020,

2. 100 percent of their actual liability for year 2019, or

3. 100 percent of their actual liability for year 2018.

Note: If you plan to base your estimated payments on a previous year’s actual liability and have filed your 2019 return, we encourage you to use your actual liability for 2019. If taxpayers timely pay in four equal installments, the lesser of 90 percent of their liability for the year 2020 or 100 percent of their liability for the years 2019 or 2018, they can avoid estimated late payment penalties.

How do I know if I am required to make estimated payments for tax year 2020?

For individuals, you are required to make estimated payments if your Illinois individual income tax liability exceeds $1,000 for the year.

For businesses, you are required to make estimated payments if you are a corporation and you reasonably expect your Illinois Income and Replacement tax and surcharge liability to be more than $400 for the tax year. For Illinois tax purposes, partnerships, trusts and estates, and small business corporations are not required to make estimated tax payments.

How do I estimate my payments based upon 100 percent of my 2018 liability if I haven’t filed my 2019 return?

For individual income tax, use Form IL-1040-ES and base your estimated tax on the amount of tax you owed on your 2018 IL-1040, Illinois Income Tax Return. For more information, see 2020 Form IL-1040-ES.

For business income tax, see the Form IL-1120 instructions, Appendix B, or IL-990-T instructions, Appendix A, to calculate your estimated payment amount and base your estimated tax on the amount of tax you owed on your 2018 return.

What if I have requested an overpayment on my 2019 tax return that I want to carry forward to 2020?

Taxpayers that request a credit carryforward of overpayments, comprised of tax payments received on or before April 15, 2020, will be able to apply this overpayment against the 2020 1st Quarter-required estimated tax installment due on April 15, 2020.

All other requests for credit carryforward amounts that are comprised of payments received after April 15, 2020, will be applied to the quarter in which they would be considered timely paid based upon the date the payment was received.

Extension of the Expiration Date of Certain Illinois Sales Tax Exemption (“E”) Numbers Due to COVID-19 Virus Outbreak: Due to staffing issues related to the ongoing COVID-19 virus pandemic, the Illinois Department of Revenue (IDOR) is unable to process most renewal applications for Illinois Sales Tax exemption (“E”) numbers at this time. To allow time to process outstanding renewal applications, the Board of Appeals at IDOR has issued an order extending the E-number expiration date by 90 days for impacted organizations and individuals.

Who will receive the 90-day extension? The Board of Appeals has extended expiration dates for certificate holders whose certificates expired within 60 days prior to the date of the Governor’s “Stay At Home” Order issued March 21, 2020, and for those whose certificates expired or will expire within 60 days following the date of the Governor’s “Stay At Home” Order.

Do I need to request the 90-day extension? No. IDOR is automatically extending the e-number expiration dates. Certificate holders do not need to take any action to be granted an extension.

Will I receive an updated exemption certificate? Yes. As with all e-number renewals, IDOR will issue updated exemption certificates, but we will not issue you an updated exemption certificate until we have completed processing of your renewal application. (March 29, 2020)

Illinois Income Tax Filing and Payment Extension: In light of the recent Disaster Proclamation issued by Governor JB Pritzker and by his direction, 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 deadline for Illinois income tax returns has been extended from April 15, 2020, to July 15, 2020.

The filing and payment relief includes: The 2019 income tax filing and payment deadlines for all taxpayers who file and pay their Illinois income taxes on April 15, 2020, are automatically extended until July 15, 2020. This relief applies to all individual returns, trusts and corporations. This relief is automatic, taxpayers do not need to file any additional forms or call IDOR to qualify. 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.

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

Indiana

Nexus Issues: On its website, the Indiana DOR has provided the following in regard to nexus:

 

In response to the new remote work requirements associated with the COVID-19 pandemic, the Indiana Department of Revenue will not use someone’s relocation, that is the direct result of temporary remote work requirements arising from and during the COVID-19 pandemic health crisis, as the basis for establishing Indiana nexus or for exceeding the protections provided by P.L. 86-272 for the employer of the temporary relocated employee.

The temporary protections provided under this guidance will extend for periods of time where:

1. there is an official work from home order issued by an applicable federal, state or local government unit, or

2. pursuant to the order of a physician in relation to the COVID-19 outbreak or due to an actual diagnosis of COVID-19, plus 14 days to allow for return to normal work locations.

If the person remains in Indiana after the temporary remote work requirement has ended, nexus may be established for that employer. Likewise, an employer may not assert that solely having a temporarily relocated employee in Indiana under the circumstances described above creates nexus for the business or exceeds the protections of P.L. 86-272 for the employer.

DOR Announces Additional Filing and Payment Extensions: The Indiana Department of Revenue (DOR) announces additional extensions for the filing and payment of certain individual and corporate tax returns to provide further relief during the COVID-19 health crisis. These extensions are in addition to the ones previously announced on March 19, 2020.

• In conjunction with the additional federal extensions provided by the Internal Revenue Service (IRS) under Notice 2020-23, DOR has extended the following Indiana deadlines:

• Individual estimated payments originally due on June 15, 2020, are now due on or before July 15, 2020.

• The deadline for filing a claim for refund of income tax set to expire between April 1 and July 14, 2020, is now extended to July 15, 2020 (including refunds of withholding or estimated tax paid in 2016).

• Corporate estimated payments due on April 20, May 20 or June 22, 2020, are now due on or before July 15, 2020.

• The corporate tax returns listed below due on May 15, June 15 or July 15, 2020, are now due on August 17, 2020. This includes forms IT-20, IT-41, IT-65, IT-20S, FIT-20, IT-6WTH and URT-1.

(May 11, 2020)

DOR Announces Additional Filing and Payment Extensions: On May 10, the Indiana Department of Revenue has extended the following Indiana deadlines:

• Individual estimated payments originally due on June 15, 2020, are now due on or before July 15, 2020.

• The deadline for filing a claim for refund of income tax set to expire between April 1 and July 14, 2020, is now extended to July 15, 2020 (including refunds of withholding or estimated tax paid in 2016).

• Corporate estimated payments due on April 20, May 20 or June 22, 2020, are now due on or before July 15, 2020.

• The corporate tax returns listed below due on May 15, June 15 or July 15, 2020, are now due on August 17, 2020. This includes forms IT-20, IT-41, IT-65, IT-20S, FIT-20, IT-6WTH and URT-1.

Executive Order 20-02: On March 6, 2020, Governor Eric Holcomb issued Executive Order 20-02, declaring a public health disaster emergency in Indiana due to the coronavirus (COVID-19). Later, on March 19, 2020, Gov. Holcomb issued Executive Order 20-05 to provide the following tax incentives for COVID-19 donations:

Manufacturers making donations of medicine, medical supplies or other eligible items to fight the COVID-19 pandemic in Indiana will not incur a use tax obligation for those donations; and roups or organizations making donations of medicine, medical supplies or other goods will not incur a use tax obligation for those donations if sales tax was not paid when receiving the item.

Use tax typically applies to retail transactions when items are not subject to sales tax at the time of purchase.

Eligible items for the COVID-19 use tax waiver include, but are not limited to:

• Medicine

• Medical supplies (such as personal protective equipment, ventilators and dialysis machines)

• Food donated to food banks or other charities helping feed those in need because of the COVID-19 crisis.

• Clothing, bedding or personal care products donated to homeless shelters or other charities helping those displaced or in jeopardy because of the COVID-19 crisis.

• Soaps, sanitizers, disinfectants, detergents and other cleaning supplies to medical facilities and the charities mentioned above.

• Building supplies, beds and other materials used to construct and furnish field hospitals or other temporary medical facilities.

Companies and organizations must get approval from DOR to use the COVID-19 waiver by emailing COVID19donations@dor.in.gov and providing the following information:

• Name of the donor.

• The donor’s Tax ID or Federal Employer Identification Number (FEIN).

• Identify if the donor is the manufacturer or purchaser of the donated items.

• A list of all items donated, including the cost or purchase price of the items.

• The organization(s) receiving the listed items.

A confirmation by the receiving organization(s) that the items have been or will be donated. Email confirmations are accepted.

After reviewing the information, DOR will confirm if the donation has been approved for the waiver. If approved, the donor will not be required to report the use tax on their next sales and use tax return, their income tax return or a consumer use tax return.

Eligible donations made prior to March 19, 2020, will be considered; however, donation of such items will not entitle the donor to a refund of any sales or use tax previously paid to DOR or to a vendor.

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.” (April 6, 2020)

DOR Announces “Helping Hoosiers” COVID-19 Relief Services: The DOR’s COVID-19 service enhancements include:

Filing, Payment & Registration Extensions

• Extending certain individual and corporate filing and payment deadlines.

• Extending certain motor carrier permitting, registration and International Fuel Tax Agreement (IFTA) filing and payment requirements.

• Extending expiring Registered Retail Merchant Certificates (RRMC) to June 30, 2020.

• Implementing case-specific penalty adjustments for late filing and payments.

Expedited Refund Processing

• Continuing all tax processing, ID protection, fraud detection and refund processing operations. Reallocating resources to accelerate certain refund case reviews and approvals.

Debt Collection Relief

• Suspending the creation of most tax filing bills, new warrants and liens. Prior audit and legal bills will continue to be issued to protect statutes of limitation.

• Suspending creation of new sheriff and collection agency collection cases.

• Suspending outbound collection call activity to focus additional resources on assisting Hoosiers with payment support and other customer-care questions.

• Suspending creation of new levy and garnishment involuntary collection actions.

• Canceling current levy and garnishment involuntary collection actions.

• Offering installment payment plan agreements up to 60 months.

• Working with Hoosiers to modify existing installment payment agreements.

• Moving existing payment plan due dates to July 15, 2020, upon request.

• Suspending payment plan terminations for missed payments.

Audit & Legal Protest Relief

• Suspending all in-person field audit work and working collaboratively with all entities currently under audit via correspondence and teleconference to meet statutory requirements.

• Suspending the non-filer desk audit letter distributions.

• Modifying desk audit record verification requirements (including Schedule C expense verification).

• Suspending all in-person protest hearings.

• Extending the current 60-day legal protest window an additional 60 days for a total of 120 days.

• Extending the current 30-day protest rehearing window an additional 60 days for a total of 90 days.

• Adjusting all legal protest final decisions to delay triggering of downstream statutes of limitation.

• Allowing the use of a valid/current Federal Power of Attorney form in lieu of Indiana’s State Power of Attorney forms in certain circumstances.

• Eliminating all possible remaining requirements for wet signatures.

Hardship & Offer-In-Comprise (OIC) Support

• Relaxing certain record submission requirements for new case creation.

• Extending the time frame for record submission on all pending hardship cases until July 31, 2020.

• Extending new hardship and OIC case processing deadlines.

• Supporting all requests to adjust payment plan terms.

Customer Service Options

• Except for in-person services, all tax processing systems and operations are operating smoothly. Customer Serviceteam members are here to help via phone, correspondence, email and online services Monday through Friday 8 a.m. – 4:30 p.m. local time.

• Call DOR’s individual customer service line at 317-232-2240.

• Call a specific District Office using the contact information at in.gov/3390.htm.

• Call DOR’s Motor Carrier Services at 317-615-7200.

• Contact a specific DOR business unit using a list of phone numbers and email addresses available at in.gov/3325.htm.

• Email DOR using the online form at in.gov/3392.htm.

• Take advantage of our online services by visiting in.gov/4331.htm.

• Registration, filing and payment services including INTIME, INtax, INtax Payand DORpay are fully functional and operating.

Tax Policy Assistance

• Contact the DOR Tax Policy team to assist with any questions or needed clarifications by emailing taxpolicy@dor.in.gov.

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

Order 2020-03 Granting Certain Penalty Relief Under Iowa Code Section 421.17(30) Due to Proclamation of Disaster Emergency: On March 9, 2020, Governor Reynolds signed a Proclamation of Disaster Emergency in response to the recent outbreak of the COVID-19 virus. As a result, pursuant to Iowa Code section 421.17(30), to ensure the efficient administration of tax laws the Director of the Department of Revenue hereby issues the following Order: In addition to any other applicable exceptions to penalties for underpayment of estimated tax provided by Iowa law, for Iowa residents or other taxpayers doing business in Iowa and required to make quarterly estimated Iowa individual income, corporate income, or franchise tax payments for a tax year beginning during the 2020 calendar year, the taxpayer shall not be subject to penalties for underpayment of estimated tax under Iowa Code sections 422.16 or 422.88 with respect to a 2020 estimated tax installment with a due date on or after April 30, 2020, and before July 31, 2020, if the tax payments made on or before that due date satisfy the following provisions as applicable:

 

1. For individuals with 2018 federal adjusted gross income as modified for Iowa purposes of $150,000 ($75,000 for married filing separate) or less, the tax payments shall be equal to or greater than the following percentage of the taxpayer’s total tax shown due or required to be shown due on the taxpayer’s 2018 Iowa income tax return if the return covered a period of 12 months: 1. 25% of the tax with respect to the first installment due during the period covered by this Order. 2. 50% of the tax with respect to the second installment due during the period covered by this Order.

2. For individuals with a 2018 federal adjusted gross income as modified for Iowa purposes of greater than $150,000 ($75,000 for married filing separate), the tax payments shall be equal to or greater than the following percentage of the taxpayer’s total tax shown due or required to be shown due on the taxpayer’s 2018 Iowa income tax return if the return covered a period of 12 months:

   1. 5% of the tax with respect to the first installment due during the period covered by this Order.

   2. 55% of the tax with respect to the second installment due during the period covered by this Order.

3. For corporations or financial institutions, the tax payments are equal to or greater than the following percentage of the taxpayer’s total tax shown due or required to be shown due on the taxpayer’s 2018 Iowa income or franchise tax return if a return showing a liability for tax was filed by the taxpayer for the 2018 taxable year and such 2018 taxable year covered a period of 12 months:

   1. 25% of the tax with respect to the first installment due during the period covered by this Order.

   2. 50% of the tax with respect to the second installment due during the period covered by this Order.

For any qualifying taxpayer who takes advantage of the underpayment penalty relief provided in this Order, the difference, if any, between the total 2020 income or franchise tax installment payments otherwise required to be made prior to July 31, 2020, under Iowa law without regard to this Order, less the tax payments required to be made prior to July 31, 2020 under this Order, shall be added to and made part of the taxpayer’s next 2020 income or franchise tax installment payment due on or after July 31, 2020, and failure to pay such increased required installment by that due date shall be considered an underpayment of estimated taxes for the installment.

The exceptions to penalties for underpayment of estimated taxes provided in this Order are available in addition to any applicable exceptions available under existing Iowa law.

Iowa Small Business Relief Tax Deferral Program still accepting applications: On March 23, Governor Kim Reynolds announced a new Iowa Small Business Relief Program to support the state’s small businesses impacted by the COVID-19 pandemic. The program offered small business relief grants, administered by the Iowa Economic Development Authority. It also offered businesses a tax deferral of sales and/or withholding taxes due and waiver of penalty and interest, administered by the Iowa Department of Revenue.

As of April 8, 2020, “The Department of Revenue continues to take applications for tax deferrals,” said Director Kraig Paulsen. The tax deferral is available to employers and businesses of all sizes impacted by COVID-19. The Department expects to keep the application process open through April 30. Information about the program and the application is located at tax.iowa.gov/COVID-19, including answers to frequently asked questions.

The Department has received more than 5,700 tax deferral applications and will review each application to determine deferral eligibility. It expects to approve 2,300 applications this week — and notify the applicants by mail. Review will continue until all applications have been vetted.

For any sales and/or withholding tax filing due during the period beginning March 20, 2020, through the close of business on April 30, 2020, the tax deferral provides an additional 60 days from the original due date to file your tax return and remit your tax payment. Penalty associated with sales and/or withholding tax filings due during the period beginning March 20, 2020, through close of business on April 30, 2020, will be waived. Interest is waived for 60 days from the date your tax return was due. If a payment has not been made within those 60 days, interest will begin to accrue on the outstanding balance due on the first day of the calendar month after the 60th day.

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 idr@iowa.gov, rather than visiting the Department in the Hoover Building at the Iowa Capitol Complex in Des Moines.” (March 18, 2020)

Kansas

Waiver of Penalty and Interest for Estimated Tax Payments for Individual and Corporate Income Taxes and Privilege Tax (Notice 20-02):  Prompted by events surrounding the novel coronavirus-19, 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. (April 2, 2020)

 

Executive Order No. 20-13 Allowing Certain Deferred Tax Deadlines and Payments: Governor Laura Kelly, in order to mitigate the effects of the spread of COVID-19, directed and ordered “the following:

• The Department of Revenue shall extend the deadline for filing the 2019 calendar year tax returns for individual income tax, fiduciary income tax, corporate income tax, and privilege tax to July 15, 2020. The payment due date for such taxes shall also be extended to July 15, 2020, and no penalty or interest shall be imposed if paid on or before July 15, 2020.

• The Department of Revenue shall extend to July 15, 2020, the deadline for filing the 2019 fiscal year tax returns for fiduciary income tax, corporate income tax, and privilege tax with due dates between April 15, 2020 and July 15, 2020. The payment due date for such taxes shall be extended to July 15, 2020, and no penalty or interest shall be imposed if paid on or before July 15, 2020.” (March 23, 2020)

Kentucky

Tax Deadline Changed: The Kentucky income tax return filing and payment date has been extended to July 15, 2020. (April 2, 2020)

 

At the direction of Governor Andy Beshear and SB 150, the Kentucky Department of Revenue (DOR) will adopt the income tax relief set forth in Internal Revenue Service (IRS) Notice 2020-18, Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic. This income tax relief is applicable to individual, corporate, limited liability, fiduciary and pass-through filers with filing and payment deadlines of April 15, 2020. This relief includes:

• Kentucky income tax return filings currently due on April 15, 2020 for individual, corporate, limited liability, fiduciary and pass-through filers, shall now be due July 15, 2020;

• Kentucky income tax payments currently due on April 15, 2020 for individual, corporate, limited liability, fiduciary and pass-through filers, shall now be due July 15, 2020;

• The calculation and application of penalties, fees and interest corresponding to Kentucky income tax filings and payments now due on July 15, 2020 for individual, corporate and limited liability filers shall begin on July 16, 2020; and

• For filers who submit an automatic return filing extension, the due date for returns previously due April 15, 2020, but now due July 15, 2020, shall be October 15, 2020.  For C corporations the extension due date shall be November 15, 2020

Update: On March 30, 2020, Kentucky Governor Andy Beshear signed S.B. 150 which authorizes the state’s tax districts to suspend or extend return deadlines for taxable net profits or gross receipts during the state’s declared emergency. The bill also requires the Kentucky Department of Revenue to provide the same extensions as offered by the US Department of Treasury and the IRS in response to COVID-19 and to waive penalties and interest.

The Kentucky state of emergency was declared on March 6 and it does not have an end date.

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)

Kentucky Income Tax Return Filing Date Extended to July 15: “[T]he Kentucky Department of Revenue (DOR) will adopt most of the Coronavirus Disease 2019 (COVID-19) income tax relief described in the recent Internal Revenue Service (IRS) Notice 2020-18. This includes:

• Extending the 2019 Kentucky income tax return filing due date from April 15, 2020 to July 15, 2020.

• Late filing penalties will be waived for 2019 Kentucky income returns that are filed by July 15, 2020.

• Kentucky income tax payments due on April 15, 2020 are deferred for 90 days to July 15, 2020.

• Late payment penalties will be waived for income tax payments deferred from April 15, 2020 to July 15, 2020. However, interest still applies to the deferred income tax payments because Kentucky law prohibits the waiver of interest.

• The Kentucky relief applies only to income taxes.” (March 22, 2020)

Louisiana

Income Tax Relief Provisions for COVID-19 Public Health Emergency (Rev. Ruling 20-002): The purpose of this ruling is to provide guidance and relief provisions relative to income tax, as follows:

 

1. Safe harbor provision for declaration payments for the 2020 tax year;

2. Allowance for late filed elections for pass-through entity tax; and

3. Extension of time to acquire tax credit or execute a binding agreement to transfer a tax credit.

Summary:

In consideration of the public health emergency and general stay-at-home order, the

Department rules as follows:

1. The Department shall automatically waive any UET penalty otherwise due for the April 15 and June 15, 2020 declaration payments provided the following criteria are met:

   1. The taxpayer pays the April 15 and June 15, 2020, declaration payments timely.

   2. The amount paid on the April 15, 2020, declaration payment is at least 90% of the amount paid on the April 15, 2019, declaration payment.

   3. The amount paid on the June 15, 2020, declaration payment is at least 90% of the amount paid on the June 17, 2019, declaration payment. Corresponding relief is granted for fiscal year filers.

2. The Department shall consider any late filed Act 442 election for the 2019 tax year filed on or after April 16, 2020, but before July 16, 2020, as filed timely. Corresponding relief is granted for fiscal year filers.

3. The Department extends the deadline for a credit transfer or for the execution of a binding agreement to transfer such credit for 2019 income and franchise returns by 30 days. Corresponding relief is granted for fiscal year filers.

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) The LDR has also published a filing deadline chart that is available here.

Legislature: The Louisiana legislature has adjourned until March 31, 2020, to limit the spread of COVID-19.

Income and Franchise Tax Return Extensions and Other Matters Related to COVID-19: “The purpose of this guidance is to provide filing and payment extension relief for income and franchise tax returns and payments due on April 15 and May 15, 2020.” The due date for the following 2019 returns and any payments due with the returns is extended to July 15, 2020: (1) Partnership Return of Income; (2) Composite Partnership Tax Return; (3) LA Resident Income Tax Return; (4) LA Nonresident and Part-Year Resident Income Tax Return; (5) LA Consumer Use Tax Return; (6) Fiduciary Income Tax Return; and (7) Corporation Income and 2020 Franchise Tax.

“No penalties or interest will be assessed provided that the return and payment are submitted to the Department by the July 15, 2020, extension date. For fiscal year filers with an income tax or franchise tax return and payment due date between March 1 and May 30, 2020, the automatic extension for the return and payment is sixty days from the original due date.” (March 23, 2020)

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.

Maine

Governor Extends Current Use Tax Deadline: Effective March 31, 2020, Governor Janet Mills signed an Executive Order extending the April 1, 2020 application deadline for the annual current land use taxation application. The Executive Order was signed pursuant to the civil emergency proclamation, signed by the Governor on March 15, 2020.

 

Maine Income Tax Payment and Filing Deadline Extended: the State has announced that it will extend the deadline for Maine income tax payments from April 15, 2020 to July 15, 2020. The change aligns with the federal government’s recent extension of the federal income tax filing and payment deadline to July 15, 2020. This Maine extension includes any final and estimated Maine income and franchise tax payments due on April 15, 2020. Any related failure-to-pay penalties and interest will be abated for the period of April 16, 2020, through July 15, 2020. In addition, the extended filing deadline for Maine income and franchise tax returns is automatically tied to any federal extension. Therefore, the filing deadline of April 15, 2020 for 2019 Maine income and franchise tax returns is automatically extended to July 15, 2020. This includes Form 1040ME (Maine Individual Income Tax Return), Form 1041ME (Maine Income Tax Return for Estates and Trusts), Form 1120ME (Maine Corporate Income Tax Return), and Form 1120B-ME (Maine Franchise Tax Return).

Payment and filing deadlines for all other tax types, including Maine sales tax and income tax withholding, remain unchanged. For questions about Maine income tax, contact MRS at (207) 626-8475 or visit the MRS website at www.maine.gov/revenue.

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)

Maryland

Employer Withholding Requirements for Teleworking Employees during the COVID-19 Emergency (Tax Alert 05-04-20): Maryland issued updated guidance regarding employer withholding requirements for teleworking employees. The new alert supersedes the previous alert issued 5-01. The following tax alert addresses withholding questions received by the Office of the Comptroller of Maryland due to the unprecedented situation caused by the COVID-19 pandemic.

 

Employer Withholding Requirements

Maryland employer withholding requirements are not affected by the current shift from working on the employer’s premises to teleworking because taxability is determined by the employee’s physical presence. Generally, Maryland imposes income tax, and therefore a withholding requirement on employers, for employees domiciled in Maryland, statutory residents of Maryland, and non-residents receiving Maryland-sourced income. Income is deemed Maryland- sourced income when the income is compensation for services performed in Maryland. Residents of Virginia, Washington DC, West Virginia, and Pennsylvania who earn wages, salaries, tips, and commission income for services performed in Maryland are exempt from Maryland state income tax, and therefore, withholding, because Maryland has a reciprocal agreement with these states. Unlike the aforementioned states, Delaware has not entered into a reciprocal agreement with the state of Maryland. Compensation paid to a Maryland nonresident who is teleworking in Maryland is Maryland-sourced income, and therefore, subject to withholding.

The Comptroller’s Office does not intend to change or alter the facts and circumstances it has consistently used to determine nexus or income sourcing. As has always been the case, the Office reviews and considers the specific facts and circumstances of each taxpayer in order to make a fair determination. In doing so going forward, the Office understands that many businesses have been required or otherwise found it necessary during the COVID-19 health emergency to temporarily alter their workplace model and deployment of their employees. The Office further understands that this was done in order to comply with the various gubernatorial executive orders and health department and CDC recommendations on social distancing. Consequently, the Office will recognize the temporary nature of a business’ interim workplace model and employee deployment in light of and during the current health emergency and will not use these temporary measures to impose business nexus, to alter the sourcing of business income, or to impose additional withholding requirements on the employer.

Frequently Asked Questions:

My business is based in Virginia with offices in Maryland and Washington DC. Both of my employees are Maryland residents. Generally, one works in the Maryland office and the other in the Washington DC office. Both are presently teleworking in Maryland. Do I have a Maryland withholding requirement?

Yes. Your employees are Maryland residents and are subject to tax on all income earned.

My business is based in Maryland with offices in Virginia and Washington DC. Both of my employees are Maryland residents. One works in the Virginia office and the other in the Washington DC office. Do I have a Maryland withholding requirement?

Yes. Your employees are Maryland residents and are subject to tax on all income earned.

My business is based in Virginia with offices in Maryland and Washington DC. Both of my employees are Virginia residents. Generally, one works in the Maryland office and the other in the Washington DC office. Both are teleworking in Virginia. Do I have a Maryland withholding requirement?

No. Your employees are not Maryland residents and they are not performing services in the state. Even if they were providing services in the state, they would be exempt from withholding due to Maryland’s reciprocal agreement with Virginia.

My business is based in Delaware with an office in Maryland. My employee resides in Delaware but generally works in the Maryland office. He is currently teleworking in Delaware. Do I have a Maryland withholding requirement?

Yes. Delaware has not entered into a reciprocal agreement with Maryland. You have a withholding requirement for the wages paid as compensation for services rendered in the Maryland office because it is Maryland-sourced income, but no withholding requirement for the wages paid as compensation during the time your employee is teleworking.

My business is based in Delaware with an office in Maryland. My employee resides in Delaware but generally works in the Maryland office. He is currently teleworking in Maryland. Do I have a Maryland withholding requirement?

Yes. Delaware has not entered into a reciprocal agreement with Maryland. You have a withholding requirement for the wages paid as compensation for services rendered in the Maryland office and those paid for services rendered while teleworking in Maryland.

Information For Employers Regarding the 2020 1st Quarter Reports:

Has the due date for filing 2020 1st quarter contribution/wage reports been extended? 

No. The due date for filing the 1st quarter Contribution/Wage Report is April 30, 2020. The timely filing of wage reports is necessary to determine monetary eligibility for claimants and to preserve the integrity of the unemployment insurance program.

Is Maryland offering any tax relief to employers impacted by the COVID-19 pandemic? 

Yes. Although the due date for filing the 1st quarter Contribution/Wage Report is April 30, 2020, tax payments for the 1st quarter will be considered timely if received by June 1, 2020. Therefore, interest for the 1st quarter of 2020 tax payments will not be charged for lack of payment until after June 1, 2020. If payment is received after June 1st, interest will be charged from May 1st.

If my business has not been negatively impacted by the COVID-19 pandemic, is there any reason why I would make my tax payment by April 30, 2020? 

Yes. The health of the Unemployment Trust Fund affects all Maryland employers. While your tax payment will be considered made timely if received by June 1, 2020, tax payments made by the normal due date of April 30, 2020 are greatly appreciated. Also, an employer may prefer the more simplified process of making their tax payment at the same time they file their report.

If I have questions regarding the filing of wage reports for the 1st quarter or making tax payments, who should I contact? 

You may contact our Employer Assistance Unit at dluiemployerassistance-labor@maryland.gov.

Other information for employers related to COVID-19 

If an employee or former employee receives unemployment benefits as a result of a COVID-19-related business full or partial shutdown, will the employer’s unemployment insurance tax rate increase in 2020? 

No. A contributory employer will not see an increase in their tax rate for 2020 due to COVID-19-related benefits that may be charged to their unemployment insurance account. The tax rate for calendar year 2020 for each employer was determined based on a calculation using figures from 2019 and prior.

If an employee or former employee receives unemployment benefits as a result of a COVID-19-related business full or partial shutdown, will the employer’s unemployment insurance tax rate increase in 2021? 

Maybe. Unemployment insurance benefits are proportionately charged to each employer based on the employee’s earnings in their base period. Contributory employers may see an increase in their 2021 tax rate as a result of benefits paid due to COVID-19; however, tax rates are calculated based on benefits that have been charged to the employer account over the prior three (3) years, ending on June 30. Thus, any benefits paid due to coronavirus, COVID-19, from March to June will comprise four (4) months of the 36 months used to calculate the 2021 tax rate for employers.

In the event that a process for employers to apply for a waiver of charging of any benefits paid due to coronavirus, COVID-19, additional information will be provided outlining the requirements. Waivers will be reviewed on a case-by-case basis and approved as the law allows.

Will there be any relief for reimbursing employers related to benefits paid out to an employee or former employee as a result of a COVID-19-related business full or partial shutdown? 

Yes. Reimbursing employers are normally charged dollar for dollar for benefits paid to their former employees. However, some emergency unemployment relief for governmental entities and nonprofit organizations will be provided under the CARES Act. Maryland is awaiting further guidance from the United States Department of Labor and additional information will be provided to reimbursing employers once this guidance is received.

COVID-19 Tax Relief FAQs: On April 2, the Office of the Comptroller of Maryland released the following FAQs.

Filing and Payment Deadlines Q1. What Maryland taxes and fees are included in the relief being offered by the Comptroller’s Office?

Extensions of time to file and pay have been granted for both individuals and businesses with returns and payments due in March, April, and May of 2020. The extensions apply to specific returns and payments due for income tax (individual, corporation, pass-through entity, and fiduciary), sales and use tax, employer withholding tax, admissions and amusement tax, alcohol tax, tobacco tax, motor fuel tax, motor carrier tax, Bay Restoration Fee, and Unclaimed Property reporting for insurance companies.

NOTE: The relief being offered regarding taxes due is only a postponement of the payment of those taxes without the additional imposition of a penalty or interest during the deferment period. It is NOT an extinguishment or cancellation of that tax debt.

Do I have to be sick, or quarantined, or have any other impact from COVID-19 to qualify for filing or payment relief?

No, you do not have to be sick, or quarantined, or have any other impact from COVID-19 to qualify for relief. You only need to have a return or payment due to the Comptroller of Maryland in March, April, or May of 2020 as detailed on the table listed in Answer 3 (link here).

Is Maryland offering any relief to fiscal year income tax filers with due dates other than April 15, 2020?

Yes. 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.

Do I have to do anything to request the extended due dates?

No. The due dates listed above in Answer 3 are automatic extensions. You do not need to file any special request to take advantage of these extension dates.

Maryland has extended the due date to file the first quarterly estimated income tax payment to July 15, 2020. What about the second quarter estimated payments due on June 15, 2020? Have they been postponed as well?

No, second quarter 2020 estimated income tax payments are still due on June 15, 2020. First quarter 2020 estimated income tax payments are postponed from April 15 to July 15, 2020. The Comptroller will continue to monitor the IRS’s guidance on this matter and will update these answers if there is any change.

Does the relief apply to the filing of Maryland estate tax returns or the payment of estate tax?

No. The extension for filing returns and payment of tax does not affect the due dates for the filing of estate tax returns or payment of estate tax.

I haven’t filed my 2019 income tax return that would have been due on April 15 yet, but I expect to file it by July 15. What do I need to do?

Nothing, except file and pay any tax due with your return by July 15. You don’t need to file any additional forms or call the Comptroller to qualify for this automatic Maryland tax filing and payment relief. If you expect a refund, you are encouraged to file your return as soon as you can so that you can receive your refund. Filing electronically with direct deposit is the quickest way to get refunds. If you need more time beyond July 15 to file your return, request an automatic federal extension of time to file, and you will automatically be granted a Maryland extension of time to file. See Answer 9 for additional information on tax filing extensions.

What if I am unable to file my 2019 income tax return that would have been due on April 15 by July 15, 2020?

If no tax is due and you requested a federal extension, you do not need to file a Form PV, 500E, or take any other action to obtain an automatic extension to October 15 for individuals, and to November 15 for corporations. Please note, the deadline to file a federal extension is generally April 15. Due to the COVID-19 pandemic, the deadline to request an extension to file 2019 federal taxes has also been extended to July 15, 2020. However, the extension due date remains October 15, 2020 for individuals, and November 15, 2020 for corporations. For individuals who request a federal extension by July 15, 2020, the Maryland tax return is due by October 15, 2020. For corporations who request a federal extension by July 15, 2020, the Maryland tax return is due by November 15, 2020. For more information on federal filing deadlines, please consult guidance issued by the IRS.

Is the Comptroller’s relief available to non-residents required to file Maryland returns?

Yes, the extension of time to file and pay extends to both residents and non-residents who are required to file Maryland returns.

The IRS has imposed certain income limitations on federal income tax relief related to COVID-19. Do those income limitations apply to Maryland COVID-19 tax relief?

No. There are no income limitations for the tax relief being offered by the Comptroller.

I have an electronic payment scheduled for April 15, 2020. Will the Comptroller automatically change the date of my payment to July 15, 2020?

No. The Comptroller will only change the date of a scheduled payment if specifically instructed by the taxpayer to do so.

If an individual or business already previously submitted an extension of time to file a 2019 income tax return, will the extension request be affected?

A13. No. The Comptroller will honor any previously filed extension requests without any further action required by the taxpayer. The extension dates remain unchanged. Individuals who filed a federal or Maryland extension request have until October 15, 2020 to file an income tax return. Corporations that filed a federal or Maryland extension request have until November 15, 2020 to file an income tax return.

Will the Comptroller mail quarterly Bay Restoration Fee returns to taxpayers as usual?

Yes, the Comptroller will send taxpayers subject to the Bay Restoration Fee their quarterly returns after the end of the first quarter. However, the due date for the return and payment have been extended to June 1, 2020.

Will the Comptroller mail Admissions and Amusement tax returns to taxpayers as usual?

Yes, the Comptroller will send taxpayers subject to the Admissions and Amusement tax their monthly or quarterly returns as scheduled. However, the due date for the returns and payments otherwise due in March, April, and May have been extended to June 1, 2020.

Is the Comptroller’s office still processing returns and refund requests?

Yes. The Comptroller’s office continues to process returns and refund requests. Electronic filing continues to be the most efficient way to file taxes and request a refund. iFile and bFile, on the Comptroller’s website, allow you to file individual and corporation income tax returns electronically for free. If you choose to file your request for refund via paper return, please note that processing may be delayed due to staffing limitations during the COVID-19 emergency.

I am required to file my business taxes on a monthly basis. When I file my business tax returns (e.g. sales and use tax, withholding, admissions and amusement tax, alcohol tax) on June 1, 2020 must I file separate returns for March, April, and May 2020, or can I file one consolidated return?

You must file separate returns for business taxes due in March, April, and May of 2020.

Is there an extension for insurance companies to file the 2019 unclaimed property report and payment?

Yes. The deadline to report and pay unclaimed property for insurance companies for calendar year 2019 is extended to July 31, 2020. Insurance companies should continue to report the unclaimed property amounts and make payment at the same time.

I have a tax question. Can I still get help from the Comptroller’s office?

Yes. While our branch offices and call centers are temporarily closed during the COVID-19 emergency, taxpayer assistance is still available by email. You can send your tax questions to taxhelp@marylandtaxes.gov.

Are extensions being offered for other Maryland taxes, such as personal property tax or unemployment insurance?

The extensions discussed in this FAQ document only apply to taxes administered by the Comptroller of Maryland. You may need to consult other state agencies regarding any possible extensions for other tax filings, such as personal property tax or unemployment insurance. A list of websites for other Maryland agencies can be found at www.maryland.gov.

Cessation of Collection Efforts

I owe taxes to the State of Maryland. What is the impact of the COVID-19 emergency on collection actions by the Comptroller?

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 taxes administered by the Comptroller’s office. Taxpayers receiving notices from the Comptroller’s Office during the current COVID-19 emergency should contact the email address on the notice for additional information.

I am currently on a payment plan for delinquent business and/or individual taxes. Due to the COVID-19 emergency, I can’t make my regularly scheduled payments. What should I do?

Taxpayers who are currently on a payment plan for delinquent business and/or income taxes and are unable to make those payments due to the COVID-19 emergency should contact this office at the following to discuss delaying payments:

• Business taxpayers: cdcollectionbizz@marylandtaxes.gov

• Individual income tax taxpayer: COVID19@marylandtaxes.gov

To allow this Office to respond quickly to requests for delaying payments, Comptroller Franchot suggests that the following information is provided:

• Individual Taxpayers: name, address, daytime phone number and the last four digits of the taxpayer’s social security number;

• Business Taxpayers: business name, contact name, daytime telephone number, central registration number (CR) or federal identification number (FEIN).

Maryland Tax Due Dates: The Comptroller’s office published a table with all due dates. Access it here.

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: On April 1, the Comptroller of Maryland issued Tax Alert Bulletin 04-01-20 which supersedes the previous Tax Alert Bulletin (No. 03-20). The new tax alert bulletin details updated 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. The Maryland extension applies to all taxpayers.

• 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.

• The extension for filing of returns and payment of income tax owed also extends the statute of limitations for filing a claim for refund of income tax for tax year 2019. Claims for refund from tax year 2019 must be filed no later than July 15, 2023. The extension for filing of returns and payment of income tax owed does not extend the statute of limitations for filing a claim of refund of income tax for any prior tax year. For example, a claim for refund from tax year 2016 must be filed no later than April 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, may be submitted by June 1, 2020 without incurring interest or penalties. Do not combine separate reporting periods into a single return. Instead, please file the separate returns reflecting the sales and the tax collected for each filing period as if they had been filed according to their original due dates.

• 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. Do not combine withholding for separate reporting periods into a single return. Instead, please file the separate returns reflecting the tax withheld for each filing period as if they had been filed according to their original due dates.

• 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.

• The Comptroller is extending the due date for alcohol tax returns and payments to June 1, 2020. Alcohol tax returns (both those that include payments and those that do not include payments) covering sales in February, March and April 2020, may be submitted by June 1, 2020, without incurring interest or penalties.

• The Comptroller is extending the due date for beer tax payment to June 1, 2020. Beer tax payments may be submitted by June 1, 2020 without incurring interest or penalties.

• 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.

Massachusetts

TIR 20-5: Massachusetts Tax Implications of an Employee Working Remotely due to the COVID-19 Pandemic: This TIR describes the Massachusetts tax implications of an employee working remotely in a state other than the state where the employee previously worked, solely due to the 2019 novel Coronavirus (“COVID-19”) pandemic.  In response to the COVID-19 pandemic, Massachusetts and other states have declared states of emergency and issued temporary social-distancing measures and other restrictions.  Consequently, many businesses have implemented work-from-home requirements for their employees.  The rules announced in this TIR are being adopted to minimize disruption for employers and employees during the COVID-19 state of emergency. They are effective for the period beginning March 10, 2020 and ending on the date on which the Governor gives notice that the state of emergency declared in Executive Order 591 is no longer in effect.

 

This TIR explains the personal income and withholding tax obligations of and related to employees working from home due to a state-issued COVID-19 state of emergency.  This TIR also announces that one or more employees working from home solely due to the COVID-19 pandemic will not subject a business to a sales and use tax collection obligation or to the corporate excise by reason of that fact.  In addition, the presence of an employee working from home in Massachusetts under these circumstances will not impact the numerator of a business corporation’s corporate apportionment payroll factor for the duration of the Massachusetts COVID-19 state of emergency.  Lastly, this TIR explains the application of the Massachusetts Paid Family and Medical Leave (“PFML”) program where an employee is working remotely in a different state. For the full text of TIR 20-5, please use this link.

Tax Filing and Payment Relief for Personal Income and Corporate Excise Taxpayers Affected by COVID-19 (TIR 20-4): All returns and payments for the 2019 calendar year otherwise due on April 15, 2020 under G.L. c. 62C, § 6 are now due July 15, 2020. The July 15, 2020 due date applies to personal income tax, estate and trust income tax, and income tax due with a partnership composite return with an April 15, 2020 due date. It also applies to an April, 2020 tax installment owed by a personal income taxpayer with respect to deemed repatriated income. Taxpayers that previously filed their 2019 returns but have not yet made the associated payments have until July 15, 2020 to make such payments.

Corporate Excise Taxpayers:

The Commissioner’s authority under G.L. c. 62C, § 87 to delay due dates does not extend to corporate excise filings and payments. However, the Commissioner will waive late-file and late-pay penalties for corporate excise (including financial institution and insurance premiums excise) returns and payments due on April 15, 2020, when those returns and payments are filed and made by July 15, 2020. By law, interest will still accrue on any amounts not paid by April 15, 2020. The waiver of penalties applies to corporate excise returns and payments with an original due date of April 15, 2020, including those of certain S corporations and non-profits that file on a fiscal-year basis and have tax returns and payments due April 15, 2020.

Interaction with Automatic Extension:

Pursuant to the relief granted in this TIR, the 2019 return and payment due date for personal income taxpayers is now July 15, 2020. As long as the amount required to be paid for a valid personal income tax extension is paid by July 15, 2020, such taxpayers will be eligible for an automatic extension of time to file. The duration of the automatic extension will be based on the original due date of the return, April 15, 2020, and not the due date as modified by this TIR.

Corporate excise taxpayers with an April 15, 2020 return due date that seek an automatic six- or seven-month extension, as applicable, must still pay the amount required for such extension by April 15, 2020. A taxpayer that pays the amount required for an automatic extension on July 15, 2020 will not have a valid extension. In the latter case, late-file and late-pay penalties will still be waived for the period April 15, 2020 through July 15, 2020, but penalties may accrue going forward until the applicable return is filed and payment is made. (April 3, 2020)

Claiming Relief:

Generally, the Department will automatically provide the relief granted for filings and payments for eligible taxpayers.  An eligible taxpayer who files and pays by July 15, 2020 and is assessed late-file or late-pay penalties, interest in the case of personal income taxpayers, or other charges inconsistent with this TIR should electronically file a dispute to request an abatement of such charges through the Department’s website at www.mass.gov/dor, using MassTaxConnect.

Massachusetts Announces State Income Tax Deadline Being Extended to July 15: On March 27, Governor Charlie Baker, Lt. Governor Karyn Polito, Senate President Karen Spilka and House Speaker Robert DeLeo today announced an agreement to extend 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.

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:

• In many instances, taxpayers automatically receive at least six extra months to file their tax returns, as long as they satisfy certain tax payment requirements. See AP 604: Extensions of Time to File Tax Returns.

• DOR may also waive penalties under certain circumstances if a taxpayer is late in paying their tax obligation and will work with impacted taxpayers to waive such penalties. See AP 633: Guidelines for the Waiver and Abatement of Penalties.”

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.

Michigan

NOTICE AUTOMATIC EXTENSION OF STATE AND INCOME TAX FILING DEADLINES:  This departmental notice provides taxpayers with combined information on the extensions of time to file Michigan income tax returns and remit tax and the waivers from penalty and interest that the Department will grant based on Executive Order 2020-26 and Internal Revenue Service (IRS) Notice 2020-23. Governor Whitmer issues Executive Order 2020-26. Executive Order 2020-26, issued on March 27, 2020, automatically extended certain deadlines for filing and paying state and city income taxes in Michigan. The automatic extension generally allowed for returns and payments otherwise due in April 2020 to be filed in July 2020 without accrual of penalty and interest. This 3-month extension to file returns and pay tax generally accorded with the same relief provided by the IRS for federal taxpayers with returns and payments due on April 15, 2020 (IRS Notice 2020-17). IRS issues Notice 2020-23. On April 9, 2020 the IRS issued supplemental guidance through Notice 2020-23 providing extensions to July 15, 2020 for any individual, fiduciary or corporation with a return or payment due between April 15, 2020 and July 15, 2020. Notice 2020-23 therefore expanded the automatic extension to include the second quarter estimated tax payment and fiscal year income tax returns and payments due on or after April 15, 2020, and before July 15, 2020. Michigan’s conformity with IRS Notice 2020-23. To conform to the automatic extensions for returns and estimated income tax payments granted through Notices 2020-17 and 2020-23, the Department will extend the due date for all Michigan income tax returns or payments due between April 15, 2020 and July 30, 2020. The automatic extension is limited to returns and payments due under the Michigan Income Tax Act. City income tax. This departmental notice does not apply to city income taxes, which remain extended only as provided by Executive 2020-26 or as otherwise indicated by each respective city. Taxpayers should contact their respective city income tax administrators for information regarding that city’s potential conformity with Notice 2020-23. State income tax extension dates. Because the extensions within the Executive Order and this departmental notice are generally applicable to any return or payment due between April 15, 2020 and July 30, 2020, the following due dates have been modified: the filing and payment of the annual return, the application and payment of tax for any extension of time to file the annual return, and payment of first and second quarter estimated payments. These extensions are automatic — there is no need for taxpayers to include any additional information upon the filing of the return or otherwise contact the Department in advance to request an extension.

 

Extension of Annual Return Filing and Payment Date for Calendar and Fiscal Filers.

The due date for the filing of the return and payment of tax based on the due date of the annual return has been automatically extended.

• State Individuals, Fiduciaries, and Composite Filers — For calendar and fiscal individual, fiduciary, and composite taxpayers that file state returns otherwise due between April 15, 2020 and before July 15, 2020, the return and payment of tax has been automatically extended to July 15, 2020.

• State Corporate Filers— For calendar and fiscal corporate state income tax filers with returns otherwise due between April 30, 2020 and before July 31, 2020, the return and payment of tax has been automatically extended to July 31, 2020.

Extension of Date for Application and Payment for Extension Requests 

Individual and corporate taxpayers may generally request an extension of time to file the annual return provided, however, that tax is paid by the due date of the original return. For purposes of paying that tax, the due date of the original return is the filing date of the annual return as established by Executive Order 2020-26 or this departmental notice. A taxpayer requesting an extension of time to file an annual return must therefore file an application and pay any tax with that extension request by the respective annual return filing date in July 2020. The due date of the extended annual return, however, will not be modified by Executive Order 2020-26 or this departmental notice. The following general rules will apply for most taxpayers seeking an extension of time to file the annual return:

• Individuals — An individual taxpayer requesting a 6-month extension of time to file a state income tax return must submit that request and pay the appropriate amount of tax by July 15, 2020, but the extended annual return remains due on October 15, 2020.

• Corporations — A calendar-year corporate taxpayer requesting an 8-month extension of time to file a state corporate income tax return must submit that request and pay the appropriate amount of tax by July 31, 2020, but the extended annual return remains due on December 31, 2020. A fiscal-year corporate taxpayer with an annual return due on June 30, 2020 must submit an extension request and pay the appropriate amount of tax by July 31, 2020, but the extended annual return remains due on February 28, 2021.

Extension of Estimated Payments Date for Q1 and Q2 2020 

Executive Order 2020-26 extended the date to remit the quarterly estimated tax payment due for the first quarter of 2020. To conform with IRS Notice 2020-23, this departmental notice similarly extends the date for second quarter estimated payments for the state income tax. Accordingly, for most filers, the first and second quarter estimated payments are due on July 15, 2020. For certain fiscal filers, any estimated payment due after April 15, 2020 and before July 15, 2020 is due on July 15, 2020. With regard to any extension authorized by Executive Order 2020-26 and this departmental notice, penalty and interest will not accrue for the period for which that extension is automatically effective. Penalty and interest for late filing of the return will therefore not accrue between April 15, 2020 and July 15, 2020 for most individuals and fiduciaries and, likewise, will not accrue between April 30, 2020 and July 31, 2020 for most corporations. However, the suspension of penalty and interest is limited to the automatic extensions authorized under Executive Order 2020- 26 and this departmental notice; penalty and interest will continue to accrue as appropriate for taxes otherwise owed by any taxpayer. Executive Order 2020-26 and this departmental notice similarly suspends the time period for the calculation of interest on any refund of state or city income taxes for the 2019 tax year. Interest will generally not begin to accrue until 45 days after the claim for refund is filed or 45 days after the extended due date for the filing of the return, whichever is later.

Extension of April 2020 Michigan Income Tax Filing Deadlines, Order No. 2020-26:  Governor Gretchen Whitmer signed Executive Order 2020-26, which pushes all April 2020 state and city income tax filing deadlines in Michigan to July 2020, as a part of continued efforts to help Michiganders during the COVID-19 pandemic. “The COVID-19 pandemic has caused extreme disruption to the lives and livelihoods of all Michiganders. To protect the public health of this state and to provide essential relief to Michigan taxpayers during this unprecedented state of emergency, it is reasonable and necessary to temporarily suspend certain rules and procedures so as to automatically extend to July 2020 certain deadlines for filing and paying state and city income taxes in Michigan. This temporary relief comports with the filing and payment extensions the Internal Revenue Service has provided to federal taxpayers,”

• An annual state income tax return otherwise due on April 15, 2020 will instead be due on July 15, 2020.

• An annual state income tax return otherwise due on April 30, 2020 will instead be due on July 31, 2020.

• A state income tax payment otherwise due on April 15, 2020 will instead be due on July 15, 2020.

• A state income tax payment otherwise due on April 30, 2020 will instead be due on July 31, 2020.

• An estimated state income tax payment otherwise due on April 30, 2020 will instead be due on July 31, 2020.

• Penalties and interest for failure to file a state income tax return or failure to pay state income taxes are aligned with the extensions set forth in sections 1 to 3 of this order. 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.

• An annual city income tax return otherwise due on April 15, 2020, and any accompanying city income tax payment due with the return, will instead be due on July 15, 2020.

• An annual city income tax return otherwise due on April 30, 2020, and any accompanying city income tax payment due with the return, will instead be due on July 31, 2020.

• An estimated city income tax extension payment otherwise due on April 15, 2020 will instead be due on July 15, 2020.

• An estimated city income tax extension payment otherwise due on April 30, 2020 will instead be due on July 31, 2020.

• An estimated city income tax payment otherwise due on April 15, 2020 will instead be due on July 15, 2020.

• An estimated city income tax payment otherwise due on April 30, 2020 will instead be due on July 31, 2020.

• 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.

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)

Minnesota

Nexus Concerns: On its website the Department has stated that it will not seek to establish nexus for business income tax or sales and use tax solely because an employee is temporarily working from home due to the COVID-19 pandemic. Generally, an employer that transacts business or derives income from sources in Minnesota must withhold for employees. (May 15, 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.

Minnesota Care 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)

Mississippi

Mississippi DOR Notice 80-20-001 Income Tax Filing Deadline: Mississippi has extended the due date for filing income tax returns from April 15, 2020 to May 15, 2020. This extension applies to Individual Income Tax returns, Corporate Income and Franchise Tax returns, and Fiduciary Income Tax returns. The date is also extended for first quarter 2020 Estimated Tax Payments and the 2019 Extension Payments to May 15, 2020. If a taxpayer is unable to file the return by May 15, 2020, and expects to owe a balance of tax, then the taxpayer should file for an extension. The only method to file for a Mississippi extension is to file Form 80-106 Payment Voucher by marking the “EXTENSION PAYMENT” box and submitting the estimated amount of tax due. If a taxpayer does not expect to owe a balance of tax due on the filing of the return, then the taxpayer does not have to take an action. Please do not send a federal extension form to the Department of Revenue, as we cannot process these forms. However, the Department will recognize any federal extension filed with the Internal Revenue Service on May 15, 2020. If a taxpayer files for an extension of time to file the return, the return will be due on October 15, 2020. An extension of time to file is not an extension of time to pay the tax due. A balance of tax due after May 15, 2020 is potentially subject to late pay penalty of ½ % per month not to exceed 25% and late pay interest of ½ % per month. A return not submitted by October 15 is potentially subject to late file penalty of 5% per month not to exceed 25%. The press release issued by the Department of Revenue on March 26, 2020 stated that penalty and interest would not be charged on prior or new liabilities during the period of the presidentially declared national emergency. This applies to the other tax types administered by the Department and does not apply to income tax. The penalty and interest structure applicable to income tax are provided in this notice. The Department recognizes that some taxpayers may have been impacted by the recent storms. Any taxpayer that has been impacted and is unable to file by the extended due date may request an extension from our office by contacting us at 601-923-7700 or dorcustserv@dor.ms.gov. (May 1, 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)

Update: In addition, the Commissioner was granted approval to extend the following deadlines:

• Homestead Application Deadline –the homestead application deadline has been extended until May 1, 2020.

• First Monday of April Tax Sale – the tax sale deadline has been extended to May 4, 2020, which is the first Monday of May for the following counties: Amite, Quitman and Sunflower.

• Personal Property Renditions – the due date for Personal Property Renditions furnished by taxpayers to the County Tax Assessor has been extended for thirty (30) days. They will be due on May 1, 2020. Since the due date is now May 1, 2020, the 10% increase in assessment penalty for failure to provide to Assessor will also be extended to May 1, 2020.

• Real and Personal Property Land Rolls Deadline –the due date for Real and Personal Land Rolls furnished from County Tax Assessors to Boards of Supervisors has been extended for thirty (30) days. At the discretion of each county’s board of supervisors, the extension is available, if needed. The land rolls could be due on the first Monday in August which will be on August 3, 2020.

• Affordable Rental Housing Deadline –the due date for the owner of affordable rental housing to provide an accurate statement of the actual net operating income to the county tax assessor has been extended for fifteen (15) days. The statements will be due April 15, 2020.

Penalty and Interest Waiver

Mississippi has taken the steps to suspend the accrual of interest and penalty on all new assessments and all prior liabilities. Penalty and interest accrual has been suspended effective March 15, 2020 and will continue until the end of the national emergency.

Audits and Filing Requirements

Our audit staff is continuing to work on open audits. We will take what steps we can to resolve issues to minimize any audit controversies. We will agree to abate penalty and interest on any audits closed during this period of national emergency and where the taxpayer agrees to settle the audit without appeal and pay the tax due. We will work with taxpayers to extend deadlines for production of records and will commit to executing extensions where needed.

During the period of national emergency, Mississippi will not change withholding requirements for businesses based on the employee’s temporary telework location. Mississippi residents are taxable on their total income, regardless of where they work. However, we will not impose any new withholding requirements on the employer. Mississippi will not use any changes in the employees temporary work locations due to the pandemic to impose nexus or alter apportionment of income for any business while temporary telework requirements are in place. (March 26, 2020)

Missouri

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)

Montana

FAQ about COVID-19 Individual Income, Estate, and Trust Payments: The payment deadlines that are extended are the taxes due with the 2019 income tax return for individuals, estates and trusts. The payment of the first installment of 2020 estimated tax for individuals, estates and trusts that was due April 15, 2020 is also postponed to July 15, 2020. However, the second installment of estimated tax is still due on June 15. The due dates to pay taxes for other tax types are not postponed.

 

Will the calculation of the 2019 interest on underpayment of estimated tax change?

No, the date used to calculate underpayment of estimated taxes does not change. If you did not pay all the estimated taxes owed for the 2019 quarterly installments, no additional underpayment of estimated taxes will be assessed based on the postponement of the payment due date.

Is the extended due date also postponed?

No, the extended due date is not postponed. The automatic extension for individuals, estates and trusts is still October 15, 2020.

If the change of due date for the federal return has an effect in what is taxable or deductible on my federal return, does Montana income tax conform to the federal treatment?

In general, if the postponement of the federal due date results in an amount being includable or deductible from gross income—for example the deductibility of contributions to an IRA before July 15—then the same amount is includable or deductible for Montana tax purposes.

Extended Individual Income Tax Filing Deadline: The 2019 filing tax deadline for individual 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. (March 20, 2020)

Nebraska

Extended Tax Deadline: As a result of the COVID-19 pandemic and actions taken by national health authorities to limit the spread of the disease, the Internal Revenue Service (IRS) recently granted federal income tax relief to taxpayers. The IRS has automatically extended the tax filing and payment deadlines for federal income taxes from April 15, 2020 to July 15, 2020. The official release from the IRS can be found by clicking here.

 

The State of Nebraska is providing this same income tax relief to state income taxpayers. 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 are able to 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.

Legislature: The Nebraska legislature declined to meet as scheduled on March 17, 2020, and the session remains adjourned until further notice.

Nevada

COVID-19 update: The Nevada Department of Taxation has closed all offices to the public. (March 16, 2020)

New Hampshire

NH DRA Offers Relief for Business, Interest & Dividends Taxes: In response to conditions caused by the COVID-19 pandemic, the New Hampshire Department of Revenue Administration (NHDRA) will grant automatic relief to Business Profits Tax (BPT), Business Enterprise Tax (BET) and Interest & Dividends Tax (I&D) taxpayers in the form of payment relief and expansion of automatic filing extensions and penalty safe harbors. Details of the relief are outlined in a Technical Information Release issued by NHDRA on March 30, which can be viewed here.

 

What is the payment relief and who qualifies? Relief is available for certain BPT, BET and I&D taxpayers who are impacted by the COVID-19 pandemic and unable to pay the amount due on April 15, 2020. Those qualifying taxpayers will have until June 15, 2020 to remit payment without typical penalties and interest. This extended due date is in addition to the expansion of the qualifications for the automatic extension and the estimate payment safe harbor. Taxpayers who qualify for this specific relief are Business Tax taxpayers who owed $50,000 or less in taxes (total BPT and BET tax liability) for tax year 2018 and I&D taxpayers who owed $10,000 or less in taxes for tax year 2018. These thresholds account for 98 percent of all BPT, BET and I&D taxpayers.

What do I need to pay on April 15th (or June 15th, if applicable) to qualify for extensions and safe harbors?

Filing Extension

Under current law, if 2019 BPT, BET, and I&D taxes were paid in full by April 15, taxpayers are entitled to an automatic seven-month extension to file their return without incurring a failure to file penalty. Since the IRS extended the federal tax filing deadline for tax year 2019 to July 15, 2020, BPT, BET and I&D taxpayers may have trouble accurately calculating the final amount of taxes owed to New Hampshire, meaning they may not have paid in full by April 15th, deeming them ineligible for the traditional automatic seven-month filing extension. To provide relief for those faced with this scenario, BPT, BET and I&D taxpayers who have paid at least the amount they owed for the 2018 tax year by April 15, 2020, will not be subject to any penalties or interest, so long as they file their returns and pay tax year 2019 in full within the automatic seven-month extension, by November 15, 2020.

Estimate Safe Harbor

Tax year 2020 quarterly estimated tax payments are also due on April 15, 2020 for BPT, BET, and I&D Taxpayers. Normally, a failure to make quarterly estimated tax payments in the appropriate amount would result in underpayment penalties at the time the return is filed. Existing safe harbors will be expanded to allow for no penalties due to the underpayment of estimates if 2020 quarterly payments total 100 percent of what was owed in tax year 2018, with at least 25 percent due in each quarter. Taxpayers may also elect to continue using existing acceptable methods to calculate their quarterly estimated payments, such as annualizing their income or using their tax year 2019 liability, if known.

What does it mean when the payment relief is combined with the extensions and safe harbors?

The chart below breaks down the deadlines and thresholds under NHDRA’s COVID-19 relief program.

BPT and BET Taxes

	2020 Estimates   Based on quarterly payments of 2018 or 2019 taxes	2019 Return or Extension Payment   Based on 100% of 2018 or 2019 taxes owed	Return Filing Due on Extension
2018 taxes owed less than or equal to $50,000	1st Quarter – June 15   2nd Quarter – June 15	June 15	November 15
2018 taxes owed greater than $50,000	1st Quarter – April 15   2nd Quarter – June 15	April 15	November 15

 

I&D Tax

	2020 Estimates   Based on quarterly payments of 2018 or 2019 taxes	2019 Return or Extension Payment   Based on 100% of 2018 or 2019 taxes owed	Return Filing Due on Extension
2018 taxes owed less than or equal to $10,000	1st Quarter – June 15   2nd Quarter – June 15	June 15	November 15
2018 taxes owed greater than $10,000	1st Quarter – April 15   2nd Quarter – June 15	April 15	November 15

 

New Jersey

Update on New Jersey Tax Filing Extension Questions: On April 1, Governor Murphy, Senate President Sweeney and Assembly Speaker Coughlin issued a joint statement announcing that New Jersey’s income tax filing deadline and corporation business tax filing deadline would be extended from April 15 to July 15.

 

That April 1 statement, as well as the original tax filing extension legislation (A-3841/S-2300), which has not been signed by the Governor, covered only personal income tax and CBT, leaving many unanswered questions around the extension of payment deadlines, abatement of penalties and interest, first and second quarter estimated payments, sales tax filings, estates and trusts, and more.

In our conversations with the Governor’s office, legislative leaders and the Division of Taxation, the NJCPA has learned that legislation is necessary to put a comprehensive solution into play. Legislators and the Governor’s office are currently working on that legislative solution.

Over the weekend, the NJCPA State Tax Task Force and Society staff developed a set of recommendations that were provided to legislative leaders and the Governor’s office.

With the April 15 deadline looming, it’s likely that legislation will be introduced in a few days, but an exact timeline remains unclear. The legislation will have to be approved by the Assembly and Senate and signed by the Governor. Guidance would then be published by the Treasury Department.

Per an April 6 NJ Spotlight article: “Any delay that lasts beyond April 15 would force the Murphy administration to take some sort of executive action to ensure that tax payments to the state can still be put off, or at least to make sure no penalties or interest will be charged to those who wait until July 15 to file.”

The NJCPA will remain in contact with lawmakers and officials at the Division and provide updates to members. (April 6, 2020)

Telecommuter COVID-19 Employer and Employee FAQ:

Sales Tax

Does an out-of-State seller have to register and collect New Jersey Sales Tax if the seller’s employees are working from home in New Jersey as a result of the COVID-19 pandemic?

As a result of the COVID-19 pandemic, several employees have been required to work from their New Jersey home. The Division will temporarily waive the Sales Tax nexus standard which is generally met if an out-of-State seller has an employee working in this State. Thus, as long as the out-of-State seller did not maintain any physical presence other than employees working from home in New Jersey and is below the economic thresholds the Division will not consider the out-of-State seller to have nexus for Sales Tax purposes during this time period.

Employer Withholding Tax

Does the Division plan to issue any written guidance to employers in your state regarding how to source the wages of their employees who regularly work in your state but who are (or will be) telecommuting from an out-of-state home office or who are (or will be) temporarily relocated at an out-of-state employer location? Does the answer differ if the temporary relocation is to another office of the employer or the employee’s home office?

New Jersey sourcing rules dictate that income is sourced based on where the service or employment is performed based on a day’s method of allocation. However, during the temporary period of the COVID-19 pandemic, wage income will continue to be sourced as determined by the employer in accordance with the employer’s jurisdiction.

The Reciprocal Personal Income Tax Agreement between New Jersey and Pennsylvania eliminates wage sourcing issues for these employees as there is agreement to not tax the wages of a resident of the other state.

Would the Division advise employers in your state to not change the current work state set-up for employees in their payroll systems who are now telecommuting or are temporarily relocated at an out-of-state employer location?

The Division would not require employers to make that change for this temporary situation. However, employers must consider their unique circumstances and make that decision.

If the answer to the above is yes, will the Division waive under-withheld tax, penalties, and/or interest for employers for this period if examined by the Division at a later date?

Relief may be granted on a case by case basis if circumstances warrant.

Will the Division permit extensions for the filing of employment tax returns and deposits or relief from interest and penalties (like the California Employment Development Division did in its guidance issued on March 9, 2020)?

There is currently no extension of time granted for withholding tax payments. The Division is not aware of any extensions granted for employment tax returns at this time. However, the Department of Labor administers this program.

Does the Division plan to alter its audit enforcement approach for telecommuters for calendar year 2020 as a result of widespread telecommuting arrangements being instituted by employers to reduce the further spread of the virus?

The Division does not intend to change its audit program at this time. The Division’s current audit program already includes the review of sourcing of income.

Personal Income Tax

Will the Division grant due date extensions for the filing of personal income tax returns and tax remittances or relief from interest and penalties related to the 2019 tax year?

Current legislation, A-3841, is under review and consideration but has not yet been approved. That legislation would extend the deadline to file tax returns and make payments for all New Jersey Business Corporation and Gross Income Tax Returns to June 30 for GIT and CBT filers. Legislation would be required to make this change. Please note that this is not the same due date as the recently announced federal income tax extension which is July 15. Because this legislation has not been approved at this time, the current deadlines remain in effect. The Division is committed to providing notice of any change to the current filing and payment deadlines if and when it is announced.

Will the Division permit the individual employees to reconcile their 2020 nonresident income allocation on their 2020 state individual income tax returns if employers maintain their existing work state data in their payroll systems?

Taxpayers may use a different allocation if warranted. The Division may request supporting documentation for the allocation.

If the answer to the above is yes, will the Division waive applicable penalties and/or interest for individual taxpayers for this period upon the filing of their 2020 tax returns and/or if examined at a later date?

The Division is unable to waive interest as it is mandated by N.J.S.A. 54A:9-5. Relief from applicable penalties may be granted on a case by case basis if circumstances warrant.

Does the Division plan to issue any written guidance to individual taxpayers regarding how to source their wages for individual income tax purposes if they are performing services as a telecommuter or as a worker temporarily relocated to an out-of-state employer location?

New Jersey sourcing rules dictate that income is sourced based on where the service or employment is performed based on a day’s method of allocation. However, during the temporary period of COVID-19 pandemic, wage income will continue to be sourced as determined by the employer in accordance with the employer’s jurisdiction.

The Reciprocal Personal Income Tax Agreement between New Jersey and Pennsylvania eliminates wage sourcing issues for these employees as there is agreement to not tax the wages of a resident of the other state.

Tele-Commuting and Corporate Nexus: As a result of COVID-19 causing people to work from home as a matter of public health, safety and welfare, the Division will temporarily waive the impact of the legal threshold within N.J.S.A. 54:10A-2 and N.J.A.C. 18:7-1.9(a) which treats the presence of employees working from their homes in New Jersey as sufficient nexus for out-of-state corporations. In the event that employees are working from home solely as a result of closures due to the coronavirus outbreak and/or the employer’s social distancing policy, no threshold will be considered to have been met. (March 30, 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)

New Mexico

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.

Update: On March 25, the New Mexico Taxation and Revenue Department issued a statement indicating that it is not required to impose interest charges on taxpayers who take advantage of the 90-day extensions announced last week for filing and paying New Mexico personal and corporate income taxes. However, interest will need to accrue on withholding tax extensions.

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)

New York

Announcement Regarding Relief from Certain Filing and Payment Deadlines due to COVID-19 (N-20-2):  The Governor has issued Executive Order No. 202.12 authorizing the Commissioner to provide relief from certain tax filing and payment deadlines. Accordingly, the Commissioner has extended the April 15, 2020 due date to July 15, 2020 for New York State personal income tax and corporation tax returns originally due on April 15, 2020.

 

Except as specified below, this extension applies to returns for individuals, fiduciaries (estate and trusts), and corporations taxable under Tax Law Articles 9, 9-A and 33. In addition, the Commissioner is allowing taxpayers to defer all related tax payments due on April 15, 2020 to July 15, 2020, without penalties and interest, regardless of the amount owed.

Taxpayers do not need to file any additional forms or call the Tax Department to request or apply for this relief. The returns due on April 15, 2020 will automatically be granted the filing and payment deadline extension and relief from penalties and interest. Taxpayers who are due a refund are urged to file as soon as possible.

• 2019 returns due on April 15, 2020 and related payments of tax or installments of tax, including installments of estimated taxes for the 2020 tax year, will not be subject to any failure to file, failure to pay, late payment, or underpayment penalties, or interest if filed and paid by July 15, 2020.

• If you are unable to file your 2019 return by July 15, 2020 you can request an automatic extension to file your return. Your return will be due on October 15, 2020 if the extension request is filed by July 15, 2020 and you properly estimate and pay your 2019 tax liability with your extension request.

• Interest, penalties, and additions to tax with respect to such extended tax filings and payments will begin to accrue on July 16, 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

NYC Rental Property Filings Extended: Section 11 of NYC Emergency Executive Order 102 (3/20/20)

 

NYC – extended 3/24/20 deadline to file with rental property filings and certifications of income and expenses with the Tax Commission on TC 201 and TC 309 to a date no earlier than 30 days after the expiration of the order.

Finance Memorandum – Real Property Transfer Tax Filing Extensions and the COVID-19 Outbreak: (NYC 20-4) DOF Commissioner Jacques Jiha has exercised his authority under the Administrative Code of the City of New York to allow for a waiver of penalties for all New York City Real Property Transfer Tax returns due between March 15, 2020, and April 25, 2020. Taxpayers may request to have the penalties waived on a late-filed return, or in a separate request.

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.

Penalty Abatements

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)

North Carolina

Interest Waiver Applies to Individual, Corporate, and Franchise Taxes Due from April 15 through July 15:/strong> The North Carolina Department of Revenue (NCDOR) announced on May 4, 2020 that expanded tax relief for individuals and businesses as part of the state’s response to the COVID-19 pandemic. Under the new law signed by Governor Roy Cooper, the NCDOR will not charge 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 between April 15, 2020, through July 15, 2020.  The relief also applies to estimated income tax payments due between the same dates.

 

In March, the NCDOR extended the deadline for filing North Carolina individual income, corporate income, and franchise taxes due on April 15, 2020 to July 15, 2020. In addition, the agency announced it would not charge penalties for those filing and paying their taxes due on April 15, 2020, as long as they file and pay their tax before July 15, 2020, to mirror the federal Internal Revenue Service changes. At that time, interest could not be waived without a change in law.

While the NCDOR has offered additional penalty relief for many other tax types, including sales and use and withholding taxes, the interest waiver only applies to individual income, corporate income, and franchise taxes under the new law.

NCDOR will issue a notice providing additional details regarding the relief provided under this new law.

North Carolina DOR Offers Expanded Penalty Relief: the North Carolina Department of Revenue (NCDOR) is expanding tax relief as part of Governor Roy Cooper’s response to the COVID-19 pandemic. The NCDOR will not impose penalties for late filing or payments of many tax types, including sales and use and withholding taxes, through July 15. The NCDOR previously announced tax relief for individuals, corporations, partnerships, trusts, and estates.

In the notice issued on March 31, the NCDOR announced that it will not impose penalties for failure to obtain a license, failure to file a return, or failure to pay a tax that is due on March 15, 2020 through July 15, 2020, if the corresponding license is obtained, return is filed, or tax is paid on or before July 15, 2020. The NCDOR cannot waive interest from the due date under current state law–currently 5% per year, the minimum rate allowed by statute. Additionally, sales and use and withholding taxes are trust taxes and the money collected must be remitted to the state and cannot be used for other purposes.

The relief from Late Action Penalties applies to the following tax types:

• Withholding Tax

• Sales and Use Tax

• Scrap Tire Disposal Tax

• White Goods Disposal Tax;

• Motor Vehicle Lease and Subscription Tax

• Solid Waste Disposal Tax

• 911 Service Charge for Prepaid Telecommunications Service

• Dry-Cleaning Solvent Tax

• Primary Forest Products Tax

• Freight Car Line Companies

• Various Taxes Administered by the Excise Tax Division

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)

North Dakota

Guidance for North Dakota Taxpayers During Covid-19 Precautions: (updated 5/4/2020)

 

As the COVID-19 situation progresses in North Dakota, we want to assure taxpayers that the North Dakota Office of State Tax Commissioner remains open and ready to help with tax-related services and questions.

We are modifying some services to make health and safety a top priority for taxpayers and staff, such as:

• We continue to follow guidance from the North Dakota Department of Health to help limit the spread of COVID-19.

• By executive order of Governor Doug Burgum, state offices are limiting public access until further notice. We continue to assist taxpayers through alternate methods.

• We are encouraging the use of e-file and mail to submit returns. We continue to assist taxpayers by phone and email to resolve any questions as part of our efforts to help limit the spread of COVID-19.

• We are resuming some services that were paused due to the COVID-19 situation in the return filing, audit and collection areas. Please feel that you or your business can contact our offices to discuss any situation if you are impacted by the COVID-19 situation.

Has the income tax deadline changed?

We are 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 15th 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.

The waiver of penalty and interest through July 15 applies to all income taxes, which includes individuals (Form ND-1), corporations (Form 40), S-corporations (Form 60), partnerships (Form 58), and Fiduciaries (Form 38). It does not apply to employer’s quarterly wage withholding tax that is due April 30, 2020. It also does not apply to sales tax or any other tax.

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.

Are free tax preparation services affected?

To help slow the spread of COVID-19 in North Dakota, many free income tax preparation sites have closed for 2020. You may be eligible to file your return electronically for free. See if you qualify.

Who can I contact with questions?

If you have questions, please contact the Office of State Tax Commissioner. Because of staffing during the COVID-19 period, we encourage contact us by email at individualtax@nd.gov, or call us at 701-328-1247.

My return is due April 15, 2020. What do I need to do to obtain the waiver of penalty and interest?

Nothing. Taxpayers who are able to file prior to July 15, do not need to take any additional steps if they are able to file by that date. If the tax is paid after July 15, no amount of penalty and interest will be due for the period of April 15 through July 15.

The IRS also announced that all income tax filing and payment dates falling between April 1 and July 15 are being extended to July 15. Are North Dakota’s due dates for that period also extended?

North Dakota will also provide automatic relief from penalty and interest for any income tax return or payment that is due prior to July 15.  This includes a second quarter estimated payment this is due June 15.

I am unable to file my return and/or pay the tax by July 15. What penalty or interest will apply?

Penalty and interest will apply beginning July 16. A federal extension to file can be sought (Individuals – Form 4868) which also extends the time to file your North Dakota return to October 15. With a federal extension in place, no penalty would be due if North Dakota income tax was filed and paid by October 15, but extension interest on the unpaid tax would apply starting on July 16.

I have already electronically filed my return and scheduled an ACH payment to be made April 15, 2020. Can I change this payment or date?

We cannot change the amount or the date, but we can cancel the payment for you. To cancel the payment, you must contact our office. If you choose to cancel the payment, you must make the payment by July 15. Electronic payments can be made on our payment site at www.nd.gov/tax – select Make a Payment on the menu. If you choose to mail a paper check, it must be accompanied by a voucher, which can completed and printed through our payment site at www.nd.gov/tax – select Make a Payment on the menu, and scroll down to Print Payment Voucher.

I have already filed my return but have not paid. Can I wait to pay until July 15 without being charged any penalty or interest?

Yes. Penalty and interest will be automatically waived if the tax is paid by July 15.

I have already filed my return and paid the tax owed. Can I amend the return to get my payment returned to me?

No. Taxes that have already been filed and paid are complete. The due date to file and pay the tax did not change, but rather a waiver for penalty and interest was applied through July 15 to provide relief to those impacted by COVID-19 in case they were unable to file by the April 15 deadline.

Does the July 15 waiver announcement apply to my first quarter estimated payment that is due April 15, 2020 and my second quarter estimated payment due June 15, 2020?

Yes.  If the payment is made by July 15, all interest will be waived.  Also, if payment is made after July 15, any interest related to the period of April 15 to July 15 will be automatically waived.

For a 2016 calendar year return that had an original due date of April 15, 2017, does the July 15 waiver announcement affect the time limit to amend my 2016 return?

No. The statute of limitations to amend is set in law and is not affected. Similarly, the statute of limitations for 2019 is unaffected by the July 15 waiver announcement. The statute of limitations for a 2019 return remains based off the later of the due date or date filed, which would be April 15, 2023 for the three-year statute of limitations.

I file a calendar year partnership return (Form 58). Does the July 15 waiver announcement apply to my return and the withholding or composite tax that is owed on that return?

Yes. It the waiver applies to any income tax return or payment with a due date falling between April 1 and July 15, 2020.

I file a calendar year S-corporation return (Form 60). Does the July 15 waiver announcement apply to my return and the withholding or composite tax that is owed on that return?

Yes. It the waiver applies to any income tax return or payment with a due date falling between April 1 and July 15, 2020.

My business return is filed on a fiscal year basis with a due date of May 15, 2020? Does the July 15 waiver announcement apply to my return?

Yes. It the waiver applies to any income tax return or payment with a due date falling between April 1 and July 15, 2020.

My business return is filed on a fiscal year basis with a due date of June 15, 2020. Does the July 15 waiver announcement apply to my return?

Yes. It the waiver applies to any income tax return or payment with a due date falling between April 1 and July 15, 2020.

My business return is filed on a fiscal year basis which obtained an extension to file the return to April 15, 2020. Does the July 15 waiver announcement apply to my extended due date?

Yes. The waiver applies to any income tax return or payment with a due date falling between April 1 and July 15, 2020, including a due date which was previously extended.

My corporate income tax return is filed on a fiscal year basis with an original due date of May 15, 2020. Does the July 15 waiver announcement apply to my first quarter estimated payment that is due May 15, 2020?

Yes. The waiver applies to any income tax return or payment with a due date falling between April 1 and July 15, 2020.

My corporate income tax return is filed on a fiscal year basis with an original due date of June 15, 2020. Does the July 15 waiver announcement apply to my first quarter estimated payment that is due June 15, 2020?

Yes. The waiver applies to any income tax return or payment with a due date falling between April 1 and July 15, 2020.

Is there any limit to the maximum amount of payment to which the July 15 waiver announcement applies?

No. There is no limit, regardless of the type of income tax.

I have previously received a Correction Notice or a Notice of Determination. Does the July 15 waiver announcement apply to this?

No. The automatic waiver applies only to penalty and interest related to the original return and payment that was due between April 1 and July 15, 2020.  Also, any due date to respond to the Notice of Determination or any other correspondence which requests a response is not affected by the announcement. If additional time is needed to respond, contact our office.

Because of COVID restrictions and recommendations, some of our employees are present in North Dakota in a temporary telecommuting capacity.  Would this create nexus for 2020 for our company?

If the telecommuting is attributable to a COVID related response and is intended to be temporary, North Dakota will not assert income tax nexus on that basis alone.

Because of COVID restrictions and recommendations, some of our employees, whose payroll which is ordinarily assignable to another state for payroll factor purposes, are telecommuting from a location in North Dakota.  Is this payroll included as North Dakota payroll?

If the telecommuting is attributable to a COVID related response and is intended to be temporary, North Dakota will not require inclusion of that payroll in the numerator of the payroll factor.

Guidance for North Dakota Taxpayers During COVID-19 Precautions: As the COVID-19 situation progresses in North Dakota, we want to assure taxpayers that the North Dakota Office of State Tax Commissioner remains open and ready to help with tax-related services and questions.

• We are modifying some services to make health and safety a top priority for taxpayers and staff, such as:

• We continue to follow guidance from the North Dakota Department of Health to help limit the spread of COVID-19.

• By executive order of Governor Doug Burgum, state offices are limiting public access through April 6, 2020. We continue to assist taxpayers through alternate methods.

We are encouraging the use of e-file and mail to submit returns. We continue to assist taxpayers by phone and email to resolve any questions as part of our efforts to help limit the spread of COVID-19.

Has the income tax deadline changed?
We are 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 15th 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.

The waiver of penalty and interest through July 15 applies to all income taxes, which includes individuals (Form ND-1), corporations (Form 40), S-corporations (Form 60), partnerships (Form 58), and Fiduciaries (Form 38). It does not apply to employer’s quarterly wage withholding tax that is due April 30, 2020. It also does not apply to sales tax or any other tax.

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.

Are free tax preparation services affected?
To help slow the spread of COVID-19 in North Dakota, many free income tax preparation sites have closed for 2020. You may be eligible to file your return electronically for free. See if you qualify.

Who can I contact with questions?
If you have questions, please contact the Office of State Tax Commissioner. Because of staffing during the COVID-19 period, we encourage contact us by email at individualtax@nd.gov, or call us at 701-328-1247.

General Income Tax:

My return is due April 15, 2020. What do I need to do to obtain the waiver of penalty and interest?

Nothing. Taxpayers who are able to file prior to July 15, do not need to take any additional steps if they are able to file by that date. If the tax is paid after July 15, no amount of penalty and interest will be due for the period of April 15 through July 15.

I am unable to file my return and/or pay the tax by July 15. What penalty or interest will apply?

Penalty and interest will apply beginning July 16. A federal extension to file can be sought (Individuals – Form 4868) which also extends the time to file your North Dakota return to October 15. With a federal extension in place, no penalty would be due if North Dakota income tax was filed and paid by October 15, but extension interest on the unpaid tax would apply starting on July 16.

I have already electronically filed my return and scheduled an ACH payment to be made April 15, 2020. Can I change this payment or date?

We cannot change the amount or the date, but we can cancel the payment for you. To cancel the payment, you must contact our office. If you choose to cancel the payment, you must make the payment by July 15. Electronic payments can be made on our payment site at www.nd.gov/tax – select Make a Payment on the menu. If you choose to mail a paper check, it must be accompanied by a voucher, which can completed and printed through our payment site at www.nd.gov/tax – select Make a Payment on the menu, and scroll down to Print Payment Voucher.

I have already filed my return but have not paid. Can I wait to pay until July 15 without being charged any penalty or interest?

Yes. Penalty and interest will be automatically waived if the tax is paid by July 15.

I have already filed my return and paid the tax owed. Can I amend the return to get my payment returned to me?

No. Taxes that have already been filed and paid are complete. The due date to file and pay the tax did not change, but rather a waiver for penalty and interest was applied through July 15 to provide relief to those impacted by COVID-19 in case they were unable to file by the April 15 deadline.

Does the July 15 waiver announcement apply to my first quarter estimated payment that is due April 15, 2020?

Yes.  If the payment is made by July 15, all interest will be waived.  Also, if payment is made after July 15, any interest related to the period of April 15 to July 15 will be automatically waived.

For a 2016 calendar year return that had an original due date of April 15, 2017, does the July 15 waiver announcement affect the time limit to amend my 2016 return?

No. The statute of limitations to amend is set in law and is not affected. Similarly, the statute of limitations for 2019 is unaffected by the July 15 waiver announcement. The statute of limitations for a 2019 return remains based off the later of the due date or date filed, which would be April 15, 2023 for the three-year statute of limitations.

Business Income Tax:

I file a calendar year partnership return (Form 58). Does the July 15 waiver announcement apply to my return and the withholding or composite tax that is owed on that return?

Yes. It applies to the tax owed on the return that has a date of April 15, 2020.

I file a calendar year S-corporation return (Form 60). Does the July 15 waiver announcement apply to my return and the withholding or composite tax that is owed on that return?

Yes. It applies to the tax owed on the return that has a date of April 15, 2020.

My business return is filed on a fiscal year basis with a due date of May 15, 2020? Does the July 15 waiver announcement apply to my return?

No. The waiver only applies to income tax returns and payments with a due date of April 15, 2020. Requests for waivers of penalty and interest can be specifically made and will be considered on a case-by-case basis.

My business return is filed on a fiscal year basis with a due date of June 15, 2020. Does the July 15 waiver announcement apply to my return?

No. The waiver only applies to income tax returns and payments with a due date of April 15, 2020.  Requests for waivers of penalty and interest can be specifically made and will be considered on a case-by-case basis.

My business return is filed on a fiscal year basis which obtained an extension to file the return to April 15, 2020. Does the July 15 waiver announcement apply to my extended due date?

Yes. The waiver applies to income tax returns and payments with a due date of April 15, 2020, including a due date which was previously extended.

My corporate income tax return is filed on a fiscal year basis with an original due date of May 15, 2020. Does the July 15 waiver announcement apply to my first quarter estimated payment that is due May 15, 2020?

No. The waiver only applies to income tax returns and payments with a due date of April 15, 2020.

My corporate income tax return is filed on a fiscal year basis with an original due date of June 15, 2020. Does the July 15 waiver announcement apply to my first quarter estimated payment that is due June 15, 2020?

No. The waiver only applies to income tax returns and payments with a due date of April 15, 2020.

Is there any limit to the maximum amount of payment to which the July 15 waiver announcement applies?

No. There is no limit, regardless of the type of income tax.

I have previously received a Correction Notice or a Notice of Determination. Does the July 15 waiver announcement apply to this?

No. The automatic waiver applies only to penalty and interest related to the original return and payment that was due April 15, 2020. Also, any due date to respond to the Notice of Determination or any other correspondence which requests a response is not affected by the announcement. If additional time is needed to respond, contact our office.

Because of COVID restrictions and recommendations, some of our employees are present in North Dakota in a temporary telecommuting capacity. Would this create nexus for 2020 for our company?

If the telecommuting is attributable to a COVID related response and is intended to be temporary, North Dakota will not assert income tax nexus on that basis alone.

Because of COVID restrictions and recommendations, some of our employees, whose payroll which is ordinarily assignable to another state for payroll factor purposes, are telecommuting from a location in North Dakota.  Is this payroll included as North Dakota payroll?

If the telecommuting is attributable to a COVID related response and is intended to be temporary, North Dakota will not require inclusion of that payroll in the numerator of the payroll factor

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.

Ohio

Ohio DOT FAQs: answers to frequently asked questions related to Coronavirus are available on the Department’s website.

 

Ohio Extending Income Tax Filing and Payment Deadline: Tax Commissioner Jeff McClain announced that Ohio will be following the federal government and IRS in extending the deadline to file and pay the state income tax. The new deadline is July 15, an extension of approximately three months from the original deadline of April 15.

As with the IRS extension, Ohio will be waiving penalty on tax due payments made during the extension. Also, thanks to a legislative agreement between Governor Mike DeWine and the General Assembly, there will be no interest charges on payments made during the extension. The filing extension, and waiver of penalty and interest, will be available to those filing the Ohio individual income tax, the school district income tax, the pass-through entity tax, and to those taxpayers that have opted in to have the commissioner administer the municipal net profit tax through the state’s centralized filing system.

Individuals, estates, trusts and certain businesses making quarterly estimated income tax payments, have also been granted additional time to file and pay without penalty or interest. The first and second quarterly payments, normally scheduled for April 15 and June 15 for most taxpayers, have both been extended to July 15. (March 27, 2020)

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

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.”

Update to Press Release: “Oklahomans now have until July 15, 2020 to file and pay their 2019 Oklahoma income tax return … [and 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.” (March 23, 2020)

The Oklahoma Tax Commission realizes many taxpayers may have already scheduled their 2019 income tax payment to be withdrawn on a future date. Due to concerns related to the COVID-19 health crisis, taxpayers may now need to cancel and reschedule these payments to be withdrawn at a later date. Click here to fill out a form that will allow you to cancel the payment you previously scheduled. Please follow the directions on the form to submit and do not mail the form to the Oklahoma Tax Commission – you will need to submit it by email to banking@tax.ok.gov (March 27, 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)

Oregon

PPP loans, EIDL advances, SBA loan subsidies not subject to CAT: The Oregon Department of Revenue has determined that certain federal assistance to businesses under the Coronavirus Aid, Relief, and Economic Security (CARES) Act is not commercial activity under Oregon statute and will not be subject to the Corporate Activity Tax.

 

The exempt assistance includes forgiven Paycheck Protection Program (PPP) loans, Economic Injury Disaster Loan (EIDL) emergency advances, and Small Business Administration (SBA) loan subsidies. More information can be found in the Beyond the FAQ section of the CAT page on the department’s website.

According to information provided about the CARES Act on the website of the US Department of the Treasury:

• PPP loans provide small businesses with funds to pay up to eight weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.

• EIDL emergency advances of up to $10,000 are available to provide economic relief to businesses that are currently struggling with a temporary loss of revenue.

• SBA loan subsidies cover six months of payments for “covered loans” in regular servicing status.

Taxpayers with general questions about the CAT can email cat.help.dor@oregon.gov or call 503-945-8005. (May 6, 2020).

Oregon Tax Return Filing and Payment Deadlines Extended: At the direction of Governor Kate Brown, the Oregon Department of Revenue has announced an extension for Oregon tax filing and payment deadlines for personal income taxes and some other taxes closely following the IRS extension declaration. This move is a result of the governor’s priority to keep Oregonians safe and healthy, while also providing relief and consistency for Oregon taxpayers affected by the federal and state COVID-19 emergency.

Personal and corporate income tax

On March 21, 2020, the IRS issued a news release (Notice 2020-58) automatically extending the filing due date to July 15, 2020, for all returns due April 15, 2020, and allowing all payments due on that date to be deferred until July 15, 2020, without penalties or interest, regardless of the amount of the payment.

Under the authority of ORS 305.157, the director of the Department of Revenue has determined that the governor’s state-declared emergency due to the COVID-19 pandemic and the action of the IRS will impair the ability of Oregon taxpayers to take certain actions within the time prescribed by law. Therefore, the director has ordered an automatic extension of the 2019 tax year filing and payment due dates for certain affected taxpayers as indicated below.

For details of the extensions, see the department’s news release, the Director’s Order and the Director’s Order FAQ.

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.

Property tax deferral

The deadline to apply or recertify has not been extended and is still due by April 15, 2020.

Guidance to local governments on local budget law

In its supervisory capacity for cities, counties, and other taxation districts relating to local budget law, the department reminds local authorities that they may request, in writing, that the assessor grant an extension of the July 15 deadline for certifying taxes.

Local governments must adopt their budgets by June 30; which cannot be extended. For alternative means of conducting a public meeting for purposes of gathering public input, please refer to the Oregon Department of Justice’s Public Meeting Law Manual. Any alternate means of conducting public hearings must provide for public comment in real time. (April 2, 2020)

Personal and corporate income tax: Under the authority of ORS 305.157, the director of the Department of Revenue has determined that the governor’s state-declared emergency due to the COVID-19 pandemic and the action of the IRS will impair the ability of Oregon taxpayers to take certain actions within the time prescribed by law. Therefore, the director has ordered an automatic extension of the 2019 tax year filing and payment due dates for certain affected taxpayers as indicated below.

For personal income taxpayers:

• The Oregon return filing due date for tax year 2019 is automatically extended from April 15, 2020 to July 15, 2020.

• The Oregon tax payment deadline for payments due with the 2019 tax year return is automatically extended 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.

• Taxpayers do not need to file any additional forms or call us to qualify for this automatic Oregon tax filing and payment extension.

• If you have questions about your personal income tax, contact dor@oregon.gov.

For corporate income/excise taxpayers:

• The Oregon return filing due date for tax year 2019 is automatically extended from May 15, 2020 until July 15, 2020. Returns due after May 15, 2020 are not extended at this time.

• The Oregon tax payment deadline for payments due with the 2019 return by May 15, 2020 is automatically extended to July 15, 2020. Payments for returns due after May 15, 2020 are not extended at this time.

• Estimated tax payments for tax year 2020 are not extended.

• Taxpayers do not need to file any additional forms or call us to qualify for this automatic Oregon tax filing and payment extension.

Interest and penalties:

• Because of the extension of the due dates for filing returns and making payments, any interest and penalties with respect to Oregon tax filings and payments extended by this order begin accruing on July 16, 2020.

• No automatic extension is provided in this order for the payment or deposit of any other type of Oregon tax or for the filing of Oregon information returns. (March 25, 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)

Pennsylvania

Relief for Taxpayers During COVID-19 Pandemic: To help taxpayers facing financial challenges resulting from the COVID-19 pandemic, the Pennsylvania Department of Revenue is providing taxpayers with increased flexibility, additional time to meet tax obligations, and relief from a number of compliance actions. The goal is to help Pennsylvania taxpayers and citizens during this unprecedented health crisis.

 

The department has issued waivers for certain requirements and the Governor signed legislation to extend tax due dates in order to give taxpayers more time to meet their tax obligations during this difficult time. To complement these actions, from April 15, 2020 to July 15, 2020, the department will adjust many of its tax compliance programs and processes to help individuals and businesses. This will allow Pennsylvania taxpayers three months to focus on their health, safety and adhering to guidance from health authorities.

Pause Payments for Existing Payment Plans

Taxpayers under an existing payment plan are granted the opportunity for payments to be suspended without canceling the agreement by emailing a request to RA-RV-CEC-DPP@pa.gov. The department will not default any payment plans during this limited timeframe, even if new delinquencies or non-filed periods arise. However, interest will continue to accrue on any unpaid tax balances.

Provide Flexible Terms for New Payment Plans

The department will revise general payment plan guidelines to permit greater flexibility on payment amount and duration of time. Taxpayers will now have the ability to request a payment plan for outstanding liabilities without the department imposing a lien. The department will also not require financial disclosure documentation for payment plans that are under $12,000 and can be resolved within 12 months.

• $6,000 and less – Plans up to 6 months

• $12,000 and less – Plans up to 12 months

Focused Customer Service

The department is available to answer taxpayer questions through its Online Customer Service Center, available at revenue-pa.custhelp.com. Taxpayers can find answers to thousands of common tax questions or submit their tax-specific questions to a department representative. The department will also update taxpayers on its flexible compliance measures.

Collections and Enforcement Activities

In an effort to provide taxpayer service during this unprecedented time, enforcement staff will be available for businesses to discuss proactive ways to comply with Pennsylvania tax laws. Small and newly registered businesses are encouraged to contact local District Offices in an effort to help avoid falling into common tax pitfalls. The department will work with businesses to help them avoid common filing errors, navigate the department’s website to locate specific guidance, and answer any questions about electronic filing and payment.

The department will limit the imposition of new enforcement actions on tax liabilities, but will continue to work to resolve debt for large and complex accounts that remain outstanding. In addition, the department will continue to pursue taxpayers that willfully avoid meeting their Pennsylvania tax obligations.

The following automatic enforcement actions will be temporarily reduced or suspended:

• Liens – significant reduction in the number of new tax liens filed

• Wage garnishments – action will not be taken for new tax debts

• Bank attachments – action will not be taken for new tax debts

• License inspections, revocations and citations – actions will be limited during this program

• Requirements for tax clearances – tax clearances and compliance checks will be conducted consistent with the more lenient debt collection/resolution approach. Collectors will encourage use of the deferred payment plans.

• Use of private collection agencies – new case referrals are suspended. Private collection agencies will be instructed only to respond to taxpayer inquiries for accounts previously referred by the department.

Non-filer Notices

The department will continue to send non-filer notices and conduct automated call campaigns for business taxes as a reminder of their obligations. Businesses are encouraged to file and 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.

Once returns have been filed, taxpayers who have a financial hardship can take that opportunity to resolve any outstanding liabilities by entering into a payment plan using the department’s new flexible terms.

Trust Fund Taxes

All collected trust fund monies must be reported and remitted in full in accordance with your filing frequency. The department will not issue an extension of payment dates related to trust fund taxes.

Tax Credit and Incentive Programs

Tax clearances statutorily required will continue to be administered timely to ensure that the Commonwealth can fulfill contractual obligations to award benefits to those participating in economic development programs.

Assessed Penalties

During this limited period, the department will generally abate  penalties provided that taxpayers have remitted all outstanding trust fund taxes that they have collected.

Desk Review and Field Audit

During this period, the department through its Bureau of Desk Review & Analysis and Bureau of Audits, will not initiate new desk reviews or field audits in most cases. There may be exceptions if it is deemed necessary to protect the Commonwealth’s interest in preserving the applicable statute of limitations or as it relates to refund claims. The department will work with taxpayers to complete its review of work that is in progress.

The Bureau of Audits will continue to work with taxpayers to complete audit work that is in process through correspondence where possible and avoid in-person meetings until at least July 15, 2020. The Department of Revenue will continue to take the steps necessary to protect applicable statutes of limitations. In instances where statute expirations might be jeopardized during this period, taxpayers are encouraged to cooperate in extending such statutes and the department will also be flexible with taxpayers in granting requests to provide more time.

• In-Person Meetings – In-person meetings will be suspended. The Bureau of Audits will continue to conduct its audit work remotely where possible. To facilitate the progress of open examinations, taxpayers are encouraged to respond to any requests for information if they are able to do so. Where field work at a taxpayer’s site will be necessary, the department will work with taxpayers to schedule that work to resume after this period. Keep in mind that depending on developments, it may be determined that resuming field work is in the best interest of both parties due to availability of people and records. If all parties agree, field work may be approved to resume prior to July 15.

• Audit Penalty Abatement and Interest Relief – Existing audit penalty abatement parameters will be broadened for audits that are completed during the remainder of this calendar year. Additionally, to take into account the impact of halting field audit work, currently in progress sales tax, fuels tax, and IFTA audits that are completed and assessed prior to December 31, 2020 will include up to 90 days of interest relief to address delays in fieldwork.

Board of Appeals

All in-person hearings will be suspended until further notice. During this time, taxpayers are strongly encouraged to file all appeals using the Board’s online petition center at www.boardofappeals.state.pa.us. Read Board of Appeals Operations During COVID-19 Pandemic for more information.

Conclusion

The department is aware of the urgent need of our state’s taxpayers to have increased time and flexibility. This plan affirms our agency’s commitment to providing assistance in addressing their tax obligations. This is viewed as a first step in working with taxpayers and practitioners to help maintain and promote tax compliance. Over the next three months, the department will continue to evaluate if it needs to extend the program and if additional actions can be taken to enable taxpayers to comply with Pennsylvania tax laws. Where businesses and individuals have not been able to report and pay timely, we plan to fully explore how we can restore their routine voluntary compliance.

Nexus Concerns: In response to taxpayer questions Pennsylvania Department of Revenue has stated on its website that “Governor Tom Wolf issued a Proclamation of Disaster Emergency on March 6, 2020. As a result of COVID-19 causing people to temporarily work from home as a matter of safety and public health, the department will not seek to impose CNIT nexus solely on the basis of this temporary activity occurring during the duration of this emergency.”

Extension of Filing Deadline Applies to Trusts/Estates, Partnerships and S Corporations: Governor Tom Wolf recently signed into law Act 10 of 2020, which extends the due date of certain personal income tax returns and payments, as well as waiving certain other income tax dates. The Department of Revenue also announced today it is extending the due date for corporations with tax returns due in May to August 14, 2020.

Act 10 of 2020 specifically provides for the extension of the following tax filing deadlines:

• Extends the deadline to July 15, 2020 for declarations of estimated personal income tax.

• Extends the deadline to July 15, 2020 for payments of estimated personal income tax.

• Extends the deadline to July 15, 2020 for the filing of informational returns related to Pennsylvania S corporations and partnerships (Form PA-20S/PA-65), and estates and trusts (Form PA-41).

• Extends the filing date by three months for certain information returns (1099-R, 1099-MISC, and W2-G).

In addition to the due dates changed by Act 10 of 2020, the federal due date for calendar year corporation returns that is normally April 15 has been moved back to July 15. As a result, the due date for corporations with Pennsylvania returns and payments due on May 15 is now August 14. There is no extension for the June 15 estimated payment due date for corporations.

In addition to the dates extended by Act 10 of 2020, the department is extending the due date for non-resident withholding and partnership corporate net income tax withholding payments to July 15.

Here is additional guidance (applies to Calendar Year only):

Entity	Federal Form	PA Form	Original Federal Due Date	New Federal Due Date	Original PA Due Date	New PA Due Date
Partnerships	1065	PA 20S/PA-65	March 15	March 15	April 15	July 15
S Corporations	1120S	PA 20S/PA-65	March 15	March 15	April 15	July 15
Individuals	1040	PA-40	April 15	July 15	April 15	July 15
Trusts/Estates	1041	PA-41	April 15	July 15	April 15	July 15
Corporations	1120	RCT-101	April 15	July 15	May 15	August 14

Note: There are no additional extensions for fiscal year filers (taxpayers with a tax year other than January to December).

The department is issuing this guidance for taxpayers after announcing the extension of the filing deadline to July 15, 2020 for taxpayers to file their 2019 Pennsylvania personal income tax returns and payments. The extension gave taxpayers an additional 90 days to file from the original deadline of April 15 as the commonwealth takes steps to help prevent the spread of COVID-19.

Extension of Deadline for Local Taxes

Act 10 of 2020 also extends the deadline for the filing of 2019 local tax returns and payments to July 15, 2020. The Department of Revenue does not administer local taxes, so additional questions should be directed to the taxpayer’s local taxing office. Visit the Department of Community and Economic Development’s web page on Local Income Tax Collectors by Tax Collection District.

Find Alerts From Revenue Online

Taxpayers and tax professionals are encouraged to visit the Department of Revenue’s COVID-19 information page on www.revenue.pa.gov for additional guidance and updates on department operations. (April 2, 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.

Business Tax License and Certifications Extension Notice: The Department of Revenue is extending all business tax licenses and certifications that are set to expire until further communication is received from the department.

This extension applies to:

• Sales, Use and Hotel Occupancy tax licenses

• Public Transportation Assistance (PTA) Fund taxes and fees

• Small Games of Chance Manufacturer Certificates

• Sales Tax Exemption Certificates

If you need documentation of the sales tax exemption extension, please use the department’s Online Customer Service Center to submit a question. If your religious organization’s sales tax exemption certificate is due to expire on March 31, 2020, the Department of Revenue is issuing an extension letter. If documentation is needed, religious organizations are encouraged to contact their parent institutions to obtain the extension letter.

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.”

Pennsylvania – Philadelphia

Business Income & Receipts Tax (BIRT), Net Profits Tax (NPT) nexus and apportionment policies due to the COVID-19 pandemic: To reduce complexity, the City of Philadelphia is temporarily updating its nexus and apportionment policies during the COVID-19 pandemic.

 

Nexus: The Department of Revenue will temporarily waive the legal nexus threshold established under §19- 2603 of the Philadelphia Code and under Section 103 of the BIRT Regulations, which considers the presence of employees working temporarily from home within Philadelphia as establishing sufficient nexus for out-of-Philadelphia businesses. This waiver applies if and when an employee works from home solely as a result of the COVID-19 pandemic.

Determination of Taxable Receipts and Apportionment: Where Philadelphia non-resident employees – who have been performing services in their assigned business locations within Philadelphia and have not previously been required to work from home – are now temporarily working from home solely as a result of the COVID-19 pandemic, the Department of Revenue deems that such services are performed within Philadelphia for the purposes of sourcing receipts for BIRT and NPT. Philadelphia resident employees who had been performing services for employers outside the City before the COVID-19 pandemic who are now temporarily working from their homes in Philadelphia are covered by this policy. Receipts from services performed by these Philadelphia resident employees at their Philadelphia homes solely as a result of the COVID-19 pandemic will not be sourced to Philadelphia for BIRT and NPT. This special sourcing rule is an exception that applies only for the duration of the Governor and Mayor’s emergency stay-at-home orders issued in response to the COVID-19 coronavirus health emergency. This guidance is an exercise of the Department’s authority to provide for alternative apportionment when the ordinary rules would not accurately reflect the taxpayer’s income attributable to the City. We encourage taxpayers to file and pay on time. This helps ensure continuity of crucial City services.

Philadelphia Extends Business Tax Deadlines: “To offer relief, the City is extending filing and payment dates for some business taxes. . . . To support Philadelphia’s business, we are taking the following measure: ‘The Department of Revenue will honor the federal extensions granted to businesses from the IRS for filing and payments until July 15, 2020 for the Business Income and Receipts Tax and the Net Profits Tax. This policy includes estimated payments.’” (March 23, 2020)

Rhode Island

Reminder about deadline for employer withholding tax AVD 2020-19: The Rhode Island Division of Taxation reminds businesses and other entities that, despite the coronavirus pandemic (COVID-19), the deadlines remain the same for employers to remit Rhode Island personal income tax withheld from employee paychecks. Rhode Island – like the federal government and many states – has a pay-as-you-earn income tax system. Under that system, employers are required to withhold a portion of their employees’ wages and to periodically turn over those withheld funds, on a regular schedule, to the Division of Taxation. 1 These are amounts that employers have held in trust, by law, for remitting to the State of Rhode Island. While the Division recognizes the strain that taxpayers are experiencing amid the coronavirus pandemic, Rhode Island law prohibits taxpayers from using these trust fund taxes for their own purpose. Effective January 2020, there are some changes as to how Rhode Island employers, payroll companies, and accounting firms must file and pay withholding taxes to the Rhode Island Division of Taxation. Legislation passed as part of the 2019 budget process created electronic payment and filing requirements for certain employers. In conjunction with the electronic mandates, the Division of Taxation also took the opportunity to simplify the filing and payment frequencies and more align itself with the Internal Revenue Service and a number of other states. The Division moved to a quarterly return filing (see Form RI-941 and instructions) and consolidated the daily and quarter-monthly filing frequencies into a weekly frequency. Since the quarterly Form RI-941 filing is now the actual filing of the tax return, the weekly, monthly and quarterly frequencies are now referred to as payment frequencies. For more information, see the Division’s Advisory, FAQs, and 2020 withholding tax payment calendar. For purposes of the filing of a withholding return, Form RI-941 is due on a quarterly basis. All taxpayers must submit their returns once a quarter. The returns are due on the last day of the month following each quarter, with the first due date of April 30, 2020. Regardless of how often an employer must remit withholding tax, the return on Form RI-941 is due quarterly. After completing the required filing, if an employer is unable to make a scheduled payment, payment plans are available. For more information about employer withholding tax, call the Division at (401) 574-8941 from 8:30 a.m. to 3:30 p.m. business days or email: Tax.Collections@tax.ri.gov.

 

Division Sets July 15 Due Date for Individuals, Certain Entities (ADV 20202-11): In conjunction with announcements made by United States Treasury Secretary Steven T. Mnuchin and Rhode Island Governor Gina M. Raimondo on March 20, 2020, involving the April 15, 2020, deadline for certain tax filings and tax payments, the Rhode Island Division of Taxation announced today details about the filing deadline and the payment deadline for individuals and certain entities in light of the coronavirus pandemic (COVID-19). In general, the relief provides three additional months to file returns and pay balances due. No penalties and no interest will apply to those who file on or before July 15, 2020. See the RI DOT Tax News Bulletin for additional information.

Details of relief announced

Individuals can defer Rhode Island resident and nonresident personal income tax returns and personal income tax payments, normally due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. Similarly, certain business entities can defer Rhode Island returns and tax payments, normally due April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed.

Tax preparers and taxpayers do not need to file any additional forms or contact the Division of Taxation in any way in order to qualify for this Rhode Island tax filing and payment relief; the relief is automatic, and the Division is in the process of adjusting its systems accordingly.

The following table shows the filings to which the relief applies, the associated forms, the normal due date, and the new due date. No late charges will apply to those who file and pay on or before the new deadline of July 15, 2020.

New Due Date for These Rhode Island Filings and Related Payments due date for these Rhode Island
FILING	FORM	NORMAL DUE DATE	NEW DUE DATE
Surplus lines brokers/licensees	Form T-71A	April 1, 2020	July 15, 2020
Personal income tax annual return	Form RI-1040, RI-1040NR	April 15, 2020	July 15, 2020
Personal income tax – extension	Form RI-4868	April 15, 2020	July 15, 2020
Personal income tax – estimated	Form RI-1040ES	April 15, 2020	July 15, 2020
Property tax relief	Form RI-1040H	April 15, 2020	July 15, 2020
Residential lead abatement credit	Form RI-6238	April 15, 2020	July 15, 2020
Estate and trust income tax return	Form RI-1041	April 15, 2020	July 15, 2020
Estate and trust income tax – estimated	Form RI-1041ES	April 15, 2020	July 15, 2020
C corporation*	Form RI-1120C	April 15, 2020	July 15, 2020
First-quarter business estimates	Form RI-1120ES/BUS-EST	April 15, 2020	July 15, 2020
1120C business extension	Form RI-7004	April 15, 2020	July 15, 2020
Public service corporation tax	Form T-72	April 15, 2020	July 15, 2020
Business extension*	Form BUS-EXT	April 15, 2020	July 15, 2020
Bank excise tax	Form T-74	April 15, 2020	July 15, 2020
Insurance gross premiums tax	Form T-71	April 15, 2020	July 15, 2020
Single-member LLC*	Form RI-1065	April 15, 2020	July 15, 2020
Pass-through withholding*	Form RI-1096PT	April 15, 2020	July 15, 2020
Pass-through withholding – estimate*	Form RI-1096PT-ES	April 15, 2020	July 15, 2020
Pass-through withholding – extension*	Form RI-4868PT	April 15, 2020	July 15, 2020
Composite income tax – estimated	Form RI-1040C-ES	April 15, 2020	July 15, 2020
* New deadline of July 15, 2020, applies not only to calendar-year individuals and entities with normal due date of April 15, 2020 (April 1, 2020, for surplus lines brokers/licensees), but also to fiscal-year filers whose original or extended due date would normally fall on April 15, 2020. (Although fiscal-year filers who are on extension have a new due date of July 15, 2020, they still must, by statute, be fully paid by September 15, 2020.) New due date applies to filings and payments. Listing for single-member LLC assumes entity is owned by individual. Listing for C corporation also applies to filing under mandatory unitary combined reporting. New deadline for pass-through withholding (Form RI-1096PT) applies only to trusts and single-member LLCs with a normal due date of April 15. New deadline for pass-through withholding estimates (Form RI-1096PT-ES), normally due April 15, 2020, applies to all entity types. New deadline for business extension applies only to public service corporation filers and bank excise tax filers.   * Table was revised on April 6, 2020, to include language about fiscal-year filers; new deadline for composite income tax – estimated (Form RI-1040C-ES); and information about pass-through withholding. New due date does not apply to filings or payments of any other type of Rhode Island tax, or to filing of any other Rhode Island return.

Relief for Individuals:

Individuals can defer Rhode Island resident and nonresident personal income tax returns and personal income tax payments, normally due on April 15, 2020 to July 15, 2020, without penalties and interest, regardless of the amount owed. Similarly, certain business entities can defer Rhode Island returns and tax payments, normally due April 15, 2020 to July 15, 2020, without penalties and interest, regardless of the amount owed. Tax preparers and taxpayers do not need to file any additional forms or contact the Division of Taxation in any way in order to qualify for this Rhode Island tax filing and payment relief; the relief is automatic, and the Division is in the process of adjusting its systems accordingly.

The due date for resident and nonresident Rhode Island personal income tax returns – and any associated payments – for the 2019 tax year, which would normally be due on April 15, 2020 are now due on July 15, 2020.

The new deadline applies not only to resident and nonresident Rhode Island personal income tax returns and payments for the 2019 tax year, but also to Rhode Island personal income tax extensions related to the 2019 tax year that would normally be filed by April 15, 2020. The new deadline also applies to Rhode Island property-tax relief claims filed on Form RI-1040H and to claims for the residential lead abatement tax credit filed on Form RI-6238 that would normally be due on April 15, 2020. In addition, the new deadline applies to fiduciary income tax returns and payments filed by estates and trusts related to the 2019 tax year that would normally be due on April 15, 2020. The new deadline also applies to first-quarter estimated payments of Rhode Island income tax for the 2020 tax year by individuals, estates, and trusts that would normally be due April 15, 2020.

Relief for businesses:

As previously noted, a number of business entities also will automatically qualify for the relief – they will have an extra three months to file their returns and pay any balance due, regardless of the amount due, free of late charges. The relief is automatic; the Division will update its computer system accordingly; neither preparers nor taxpayers need take any additional steps.

For a comprehensive list of the filings for which relief has been granted, see ADV 20202-11. (March 27, 2020)

Administrative Hearings: In light of the ongoing state of emergency related to the COVID-19 pandemic, many administrative hearings scheduled to take place in the coming weeks must be postponed and rescheduled.

If you have a matter scheduled for preliminary review with the RI Division of Taxation on or before June 1, 2020, please contact the Tax Division at the number listed in the notice scheduling the review to either reschedule or arrange for a phone conference.

All formal administrative hearings shall be postponed until a date after May 25, 2020. You will receive correspondence with a rescheduled hearing date.

All prehearing conferences and status conferences are not postponed, but arrangements may be made to reschedule or for the conferences to take place via telephone. The individual attorney assigned to the conference will contact you directly regarding either rescheduling or coordinating a telephone conference.

Should you have any questions, please feel free to contact the RI Division of Taxation at (401) 574-8829.

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)

South Carolina

SC Information Letter #20-8:

 

SC Department of Revenue Expands Income Tax Relief. In response to the expanded tax relief provided by the Internal Revenue Service, the Department is providing additional tax filing and payment relief as a result of the Coronavirus (COVID-19) pandemic. The expanded relief to July 15, 2020, is listed below.

Additional Taxpayers and Payments Eligible for Relief. South Carolina tax relief to July 15, 2020, now applies to all taxpayers that have an income tax, franchise tax or corporate license fee filing or payment deadline (originally or pursuant to a valid extension) between April 1, 2020 and July 15, 2020. Individuals (including individuals working or living outside the United States), corporations, partnerships, banks, savings and loans, utilities, trusts and estates, and  tax-exempt organizations qualify. The South Carolina tax returns and payments on the following returns qualify for this relief: SC 1040, SC 1120, SC 1120U, SC 1120S, SC 1065, SC 1101B, SC 1104, SC 1041, and SC 990-T. The taxpayer may be a calendar year or fiscal year taxpayer. Interest or penalties related to this tax relief will be waived.

Additional Estimated Tax Payments Eligible for Relief. South Carolina tax relief to July 15, 2020, now applies to estimated tax payments due June 15, 2020. A taxpayer that has a quarterly estimated tax payment due on or after April 1, 2020, and before July 15, 2020, may make the payment by July 15, 2020, without penalty.

Additional Time for Filing a Claim for Refund. South Carolina tax relief allows affected taxpayers to July 15, 2020, to file a claim for refund that was due to be filed between April 1, 2020, and July 15, 2020. See Code Section 12-54-85 for the statutory time limitation for filing claims for refunds and SC Revenue Ruling #13-1 for general rules for limitations on filing a claim for refund.

Additional Extension of Time to File Tax Returns beyond July 15, 2020. Taxpayers who need additional time to file may choose to file the appropriate extension form by July 15, 2020, to obtain an extension to file their return. The extension date may not go beyond the original statutory extension date. For example, a Form SC 4868, “Request for Extension of Time to File South Carolina Individual Income Tax Return,” may be filed by July 15, 2020, to extend the time to file an individual income tax return, but that extension will only be to October 15, 2020. The extension will not extend the time to pay South Carolina income tax beyond July 15, 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.

South Dakota

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.

Tennessee

Executive Order No. 24, Tax Filing and Payment Extension for Professional Privilege Tax: The department has extended the due date for filing and paying the professional privilege tax from June 1, 2020 to July 1, 2020.  Governor Bill Lee included the tax extension in Executive Order No, 24.  Interest and late filing penalties will not be applied to returns filed and payments made on or before this extended due date. More information about this deadline extension can be found in important notice #20-11.

 

Business Tax Notice #20-07, Tax Filing and Payment Extension: The Tennessee Department of Revenue has extended the due date for filing and paying the Business Tax from April 15, 2020 to June 15, 2020.

The Business Tax is a tax on gross receipts that applies to most businesses selling goods or services. Taxpayers will have until June 15, 2020 to file returns and make any 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. This notice applies only to state and local business tax imposed under Tenn. Code Ann., title 67, chapter 4, part 7 and applies only to returns and payments due on April 15, 2020.

Franchise and Excise Tax Notice #20-05, COVID-19 Tax Filing Extension: “Under Tennessee law, the Commissioner is authorized to extend the deadline for filing a return whenever the IRS extends a federal filing date. The Tennessee Department of Revenue has extended the due date for filing and paying franchise and excise tax from April 15, 2020 to July 15, 2020. 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. This notice applies to franchise and excise tax only.” (March 24, 2020)

Hall Income Tax Notice #20-06, COVID-19 Tax Filing Extension: The Tennessee Department of Revenue has extended the due date for filing and paying the Hall income tax from April 15, 2020 to July 15, 2020. Taxpayers will have until July 15, 2020, to file returns and make any 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.

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.”

Texas

Comptroller’s Office Extends Franchise Tax Deadline: In response to the COVID-19 pandemic and to provide Texas businesses relief, Texas Comptroller Glenn Hegar announced that his agency is automatically extending the due date for 2020 franchise tax reports to July 15 to be consistent with the Internal Revenue Service (IRS).

 

The due date extension applies to all franchise taxpayers. It is automatic, and taxpayers do not need to file any additional forms.

Franchise taxpayers who need an extension beyond the July 15 date have these options:

• Non-electronic funds transfer (non-EFT) taxpayers who cannot file by July 15 may file an extension request on or before July 15 and must pay 90 percent of the tax due for the current year, or 100 percent of the tax reported as due for the prior year with the extension request. Non-EFT taxpayers who request an extension have until Jan. 15 to file their report and pay the remainder of the tax due.

• On or before July 15, taxpayers who are mandatory EFT payers may request an extension of time to file to Aug. 15 and must pay 90 percent of the tax due for the current year or 100 percent of the tax reported as due for the prior year with the extension request. On or before Aug. 15, EFT taxpayers may request a second extension of time to file their report and must pay the remainder of any tax due with their extension request. The Aug. 15 extension request extends the report due date to Jan. 15. Any payments made after Aug. 15 will be subject to penalty and interest.

For continuous updates on deadlines, business owners and the general public should view the Comptroller’s COVID-19 Emergency Response page.

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)

Update: On March 24, the Texas Comptroller issued a follow-up statement providing “We understand that virtually all of our taxpayers are doing their best to remain in compliance and be responsible in submitting the taxes they collected from their customers. With that in mind, our agency is here to offer assistance to those businesses that are struggling to pay the full amount of sales taxes they collected in February.

For businesses that find themselves in this situation, our agency is offering assistance in the form of short-term payment agreements and, in most instances, waivers of penalties and interest.

We ask that you contact our Enforcement Hotline at 800-252-8880 to learn about your options for remaining in compliance and avoiding interest and late fees on taxes due.”

Utah

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: “Utah State Tax Commissioners approved adjustments to tax filing and payment deadlines for individuals and business entities during its Commission meeting today [Mar. 26th]. The adjustments are in response to the actions taken by the Internal Revenue Service (IRS) in response to COVID-19, novel Coronavirus. The Commission unanimously passed an emergency rule waiving interest and penalties for late filed 2019 tax returns and payments of Corporations and Pass through entities such as LLCs. To receive this adjustment, these returns and payments have to be filed no later than July 15, 2020. The Commission also confirmed that by Utah statute, individuals will have the same time to file and pay their 2019 taxes as provided by the IRS, which is also July 15, 2020. Interested parties and tax practitioners are encouraged to visit the Tax Commission Website and review the meeting materials reflecting the official action of the Commission.”

With regard to possibly extending the deadline for submitting sales taxes, Commissioner John Valentine indicated in the Tax Commission meeting in response to a question from the public, that the Tax Commission had not taken an official position on this request. He questioned the Commission’s statutory authority to grant this request and indicated that the Governor may have to call a Special Session of the State Legislature to provide the legal authority and direction to extend the deadline for sales tax remittances.

Vermont

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

INTEREST WAIVER FOR CERTAIN TAX PAYMENTS IN RESPONSE TO THE COVID-19 CRISIS: Pursuant to budget language enacted by the 2020 General Assembly (Item 3-5.23 of House Bill 29, Chapter 1283 of the 2020 Acts of Assembly, and Item 3-5.22 of House Bill 30), Virginia will waive the accrual of interest for certain Virginia income and sales tax payments that are paid on extension in response to the coronavirus disease 2019 (COVID-19) crisis. This bulletin provides additional information regarding this interest waiver program and issues related to Virginia’s tax payment extensions in response to COVID-19 announced in Tax Bulletin 20-3 and Tax Bulletin 20-4.

 

Automatic Waiver of Interest for Certain Income Tax Payments

Certain income tax payments originally due during the period from April 1, 2020 to June 1, 2020 may now be submitted to the Department of Taxation (“the Department”) without the accrual of interest as would otherwise be required for late payments. This waiver of interest only applies if full payment is made on or before June 1, 2020. For a taxpayer filing on extension, at least 90 percent of the total tax liability must be paid by June 1, 2020 in order for the interest waiver to apply. If the interest waiver applies to such a taxpayer, no interest will accrue on the amount of tax paid by June 1, 2020, but interest will accrue from the original due date to the date of payment on any amount left unpaid after June 1, 2020. This waiver of interest applies to any payment required to be made with a Taxable Year 2019 individual, corporate, or fiduciary income tax return, as well as any such payment required to be made with respect to an election to file on extension. In addition, this waiver of interest applies to any individual, corporate, or fiduciary estimated income tax payments that are required to be paid during the period from April 1, 2020 to June 1, 2020. The waiver also applies to payments associated with composite returns. As a result of this interest waiver and the payment extension previously announced in Tax Bulletin 20-4, taxpayers are allowed to make these income tax payments by June 1, 2020 without incurring any interest or penalties. This relief is automatic. No application or paperwork is required to qualify.

Automatic Filing Extensions 

Please note that neither this bulletin nor Tax Bulletin 20-4 provides a filing extension. However, Virginia law offers an automatic filing extension to all taxpayers for up to six months (or seven months in the case of certain corporations). No application or paperwork is required to file on extension. Therefore, taxpayers eligible for an automatic interest waiver under this bulletin may file a return and fully pay any associated taxes due by June 1, 2020 without incurring interest or penalties. Taxpayers that opt to file on extension after June 1, 2020 are still required to pay at least 90 percent of their total tax liability by such date. In addition, such taxpayers are required to pay the remaining taxes due on or before the date the return is actually filed on extension. Taxpayers that fail to comply with either of these requirements may be subject to interest and penalties. However, if a taxpayer pays at least 90 percent, but less than 100 percent, of their total tax liability by June 1, 2020 and pays any remaining taxes with a return filed by the extended due date, that taxpayer will not be subject to penalties, but will be required to pay interest on the unpaid amount. The extended due date for individual and fiduciary income taxpayers who file on a calendar year basis is November 2, 2020. Different extended due dates apply to fiscal year and corporate income taxpayers. Please see the Department’s website for more information regarding Virginia’s automatic filing extension.

Effect on Pass-Through Entities 

While the interest waiver and the payment extension announced in Tax Bulletin 20-4 do apply to the amount of income tax paid with a composite return, this relief does not apply to nonresident withholding tax. As a result, interest and penalties will generally be imposed if they have not paid by the original due date for filing a Pass-Through Entity Return of Income and Return of Nonresident Withholding Tax. Automatic six-month filing extensions are available for pass-through entities. No application or paperwork is required to qualify, but an extension payment must be made by the original due date to avoid payment-related penalties.

Effect on Employer Withholding 

The interest waiver and the payment extension announced in Tax Bulletin 20-4 do not apply to employer withholding of income tax. As a result, interest and penalties will generally be imposed if employer withholding filings and payments are not made by the original due dates.

Waiver of Interest for Certain Sales Tax Payments

Dealers that were granted an extension of the due date for the February 2020 sales tax return and payment due in March pursuant to Tax Bulletin 20-3 will receive a waiver of the interest that would have otherwise accrued for such late payment. This waiver of interest only applies to such payments submitted to the Department no later than April 20, 2020. (April 27, 2020).

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. 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.

Separate tax penalty and interest updates are available, here.

Washington

COVID-19 Related Relief for Taxpayers:(updated 5/6/2020) Revenue is taking the following measures to provide relief to COVID-19 impacted businesses during the state of emergency (February 29, 2020, through the end of the state of emergency, yet to be determined). These actions address a broad range of taxes and programs: business and occupation tax, real estate excise tax assessments, leasehold excise tax, and forest tax. Check back for updates.

 

What if I am unable to pay my monthly, quarterly or annual return?

For businesses negatively impacted by the COVID-19 Pandemic, if an extension has not already been granted, a one-time extension may be available upon request.  We request that all businesses still file their returns by their original due date, even if they are unable to pay.

Businesses may request a one-time 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.

• Monthly filers: Monthly tax return payments are generally due the 25th of the following month.

• Quarterly filers: The Quarter 1, 2020 return has been extended to June 30, 2020. The Quarter 2. 2020 return is due July 31, 2020.

• Annual filers: The Annual 2019 return has been extended to June 15, 2020.

Please note: Extensions only push out the due date; they don’t waive the tax owed.

If you already filed and scheduled your payment before the extended due date, you must cancel your payment in your online My DOR account BEFORE the scheduled payment date.  Please reschedule your payment after the extension is reflected in your My DOR account.

I already received an extension on a tax return, but I still can’t pay my return in full by the new date. Can I get another extension?

While the Department is not providing multiple extensions on the same tax return, we are providing flexible payment plans without penalties.  To take advantage of this service, businesses should file their tax return by the extended due date, without payment.  The business will receive a balance due notice from the Department and should contact the number on the notice to request a COVID-19 payment plan.

What about interest?

The Department will waive interest February 29, 2020 through May 31, 2020. After this date, interest will begin accruing on outstanding balances.

Tax returns filed and paid in full by the extended due date are consider timely, and will not incur interest.

What if I need to, or have been, working with the Department on a collection related issue?

Revenue will delay issuing new compliance assessments until mid-July. This delay includes tax warrants, notices of withhold and deliver, and revocations.

What if I have a payment plan with the Department?

Upon request, Revenue will work with taxpayers that are impacted by COVID-19 to adjust payment plan amounts or extend payment dates. If your existing electronic payment plan has scheduled payments automatically debited from your account and you wish to adjust the payment amount or date, you must contact your Revenue Agent prior to the scheduled payment date.

What if I am scheduled for an audit or under audit right now?

• The Department will delay scheduling audits of the types of business that were specifically identified in the Governor’s proclamation, to coincide with the Governor’s phased approach to reopening businesses.

• For audits in progress, Revenue staff will work with you to either issue the audit or provide an extension based on your preference.

• Revenue will resume audit efforts of business types not specifically identified in the Governor’s proclamation in June.  Audit team members will remain flexible in scheduling audits and continue encouraging electronic records to support social distancing.

What should I do if I have a temporary business registration?

Businesses with a temporary registration that have had their event cancelled should notify the Department by replying to the original email they received when obtaining their temporary registration certificate.  If you no longer have the original email, you may send a message to communications@dor.wa.gov to cancel your temporary registration.

What happens if I am late renewing my business license during this time period?

The Department will waive the BLS delinquency fee on late renewals of licenses expiring in February through April of 2020.

The Department does not have the authority to extend business license expiration dates. If your license endorsements expired and you have not renewed, check with the state or local regulatory agency for your endorsement to determine if continued operation is allowed.

Is relief available for periods prior to the COVID-19 State of Emergency?

No. Penalties and interest accrued prior to February 29, 2020, will not be waived. There will be no refunds for penalties and interest paid during the state of emergency.

What if I’m late renewing my non-profit property tax exemption?

The Department will waive penalties for nonprofit applications and renewals for exempt property for the months of February 2020 through May 2020.

What if I have questions about paying my property taxes?

Please contact your local county treasurer.

What about estate tax returns?

Estates filing a Washington Estate Tax Return and a federal Estate Tax Return can request an extension for the return and/or payment until July 15, 2020, based on Federal Notice 2020-23.

Estates filing a Washington Estate Tax Return only, and are negatively impacted by the COVID-19 crisis, can request an extension for the return and/or payment during the Governor’s state of emergency. Extension requests for payments will be reviewed on a case by case basis.

To request an extension or get more case specific information, please contact the Estate Tax Team at 360-534-1503, Option 2 or at estates@dor.wa.gov.

Requesting Relief

Businesses can request the relief above 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.

We request that businesses still file their returns even if they are unable to pay.

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.

West Virginia

Executive Order No. 13-20: Pursuant to Executive Order 13-20, second-half 2019 ad valorem property tax that would become delinquent on April 1, 2020, shall now become delinquent if not paid on or before May 1, 2020.

 

Also, County sheriffs may not declare 2019 ad valorem property taxes to be delinquent before May 2, 2020.

Extension of April 15, 2020 Due Date for Filing 2019 Annual Income Tax Returns Due to the COVID-19 Outbreak: The West Virginia State Tax Department is providing special tax filing and payment relief to individuals and corporations whose 2019 annual income return is due April 15, 2020. This extension is in response to the coronavirus (COVID-19) outbreak. Information outlining the details of the extension are contained in Administrative Notice 2020-16 and West Virginia Tax Filing and Payment Deadlines Questions and Answers.

The deadline to file 2019 annual income tax returns for individuals, trusts or estates, and corporations has been extended from April 15, 2020 to July 15, 2020. Payment deadlines for these returns are also extended until 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.

This relief also extends to 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.

The Department will automatically provide this relief, so filers do not need to take any additional steps to qualify for this extension of time.

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.

Wisconsin

Department of Revenue Announces Immediate Help for Small Businesses on Sales Taxes and Other Steps to Help Taxpayers In Response to COVID-19: On March 27, the Department of Revenue announced additional measures in response to COVID-19 including immediate steps to help small businesses with sales tax payments due on March 31. Small businesses can immediately request an extension to file sales and use tax returns due March 31, 2020 until April 30, 2020 and due April 30, 2020 until June 1, 2020. Other elements related to this important sales tax change are as follows:

 

• DOR will not assess late filing fees or penalties if sales/use tax returns are filed by April 30 or June 1

• By law, payments are due March 31 and April 30; 12% interest will accrue beginning on the due date, unless the legislature changes the law to allow the DOR to waive interest

• Send your request to DORRegistration@wisconsin.gov

Other significant changes by DOR to assist both individual and business taxpayers as they face challenges related to the COVID19 pandemic:

• Expediting claims for both the Earned Income Tax credit and Homestead credit

• Lowering the interest rate from 18% to 12% on unpaid balances on sales and use tax returns due March 31 and April 30, 2020.

  • Contact : DORTOBReturnAdjustment@wisconsin.gov after you receive a bill to request a reduction of the interest rate

• Allowing installment payment plans for amounts reported on returns but unpaid.

  • Find information on how to request an installment payment plan here.

• 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.

• Delaying the start of most new audits of small businesses

More details on these and other measures can be found here.

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. (March 21, 2020)

Filing Deadline Updates: The Wisconsin Department of Revenue issued a document with additional details about the income/franchise tax extension being offered in response to the COVID-19 pandemic. You may access a copy, here. The document also indicates, that the Department is permitting taxpayers to request a one-month extension to file a sales and use tax and/or excise tax return. The extension is for time to file only. There is not an extension of time to pay. As a result, interest will be imposed during the one-month extension at a rate of one percent. (March 25, 2020).

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)

Wyoming