This is your federal and state resource to learn more about revised tax deadlines and key tax information related to the coronavirus COVID-19 response.
Key Tax Updates
Taxpayers filing federal returns subject to tax payments of any amount originally due April 15, 2020 had until July 15, 2020 to file and pay without interest or penalty. Many states have, or are in the process, of following suit. Please see your specific states below for more details.
IRS is allowing employers with fewer than 500 employees to offset the costs of offering emergency sick, family and childcare leave to its employees
IRS is providing a refundable credit against self-employment tax available as of April 2nd
Many states are mirroring extensions provided at the federal level, but please see below for the latest federal, state and local details
The Treasury Department and Internal Revenue Service (IRS) are providing special payment and filing relief to individuals and businesses in response to the COVID-19 outbreak. Income tax payment and filing deadlines were automatically extended until July 15, 2020. This relief applies only to federal income tax payments (including payments of tax on self-employment income), due on April 15. Taxpayers didn't need to file any additional forms or call the IRS to qualify for this relief. Penalties and interest didn't begin to accrue on any unpaid balances until July 16, 2020.
Paid Sick and Family Leave (FFCRA)
Small and midsize employers can begin taking advantage of two new refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing coronavirus-related leave to their employees. The act will give all American businesses with fewer than 500 employees funds to provide employees with paid leave. Legislation will enable employers to keep their workers on their payrolls, while at the same time ensuring that workers are not forced to choose between their pay checks and the public health measures needed to combat the virus. • Paid Sick Leave for Workers For COVID-19 related reasons, employees receive up to 80 hours of paid sick leave and expanded paid child care leave when employees’ children’s schools are closed or child care providers are unavailable.• Complete Coverage - Employers receive 100% reimbursement for paid leave pursuant to the Act. o Health insurance costs are also included in the credit. o Employers face no payroll tax liability. o Self-employed individuals receive an equivalent credit.• Fast Funds - Reimbursement will be quick and easy to obtain. o An immediate dollar-for-dollar tax offset against payroll taxes will be provided o Where a refund is owed, the IRS will send the refund as quickly as possible.• Small Business Protection - Employers with fewer than 50 employees are eligible for an exemption from the requirements to provide leave to care for a child whose school is closed, or child care is unavailable in cases where the viability of the business is threatened.• Easing Compliance - Requirements subject to 30-day nonenforcement period for good faith compliance efforts. Businesses can retain and access funds that they would otherwise pay to the IRS in payroll taxes. If those amounts are not sufficient to cover the cost of paid leave, employers can seek an expedited advance from the IRS by submitting a streamlined claim form.
The employee retention tax credit (“ERTC”), which is found in Section 2301 of the CARES Act, provides a refundable payroll tax credit for 50 percent of qualified wages paid by employers to employees during the COVID-19 pandemic. The credit is available to employers whose (1) operations were fully or partially suspended, due to a COVID-19-related shut-down order, or (2) gross receipts declined by more than 50 percent when compared to the same quarter in the prior year. For employers with greater than 100 full-time employees, qualified wages are wages paid to employees when they are not providing services due to the coronavirus-related circumstances described above. For eligible employers with 100 or fewer full-time employees, all employee wages qualify for the credit, whether the employer is open for business or subject to a shut-down order. The first hurdle a business has to overcome to obtain the tax credits is fitting the definition of a “qualified business.” A business meets the definition when (1) operations were fully or partially suspended, due to a COVID-19-related shut-down [government mandated] order, or (2) gross receipts declined by more than 50 percent when compared to the same quarter in the prior year. The Act does not give precise definitions as to what constitutes either “partial” or “full” suspensions of operations, but arguments abound in many scenarios which would give employers a good faith basis to argue their operations were at least “partially” suspended due to the outbreak. Of course, if employers’ gross receipts declined by more than 50 percent compared to the same quarter last year, then they automatically qualify as a “qualified business” and the partial suspension argument is moot. If the employer is a qualified business, then the second hurdle is determining if wages are “qualifying wages.” If the qualified business (with over 100 employees) is paying wages to employees that are unable to perform services due to full or partial suspension of operations or due to a loss of more than 50% of gross receipts, then those wages are deemed “qualified wages” and the credit applies. There is ambiguity regarding “performing services” and the act does not elaborate on this definition. Please note that even if the wages are qualified wages, there is a limitation clause that qualified wages may not “exceed the amount such employee would have been paid for working an equivalent duration during the 30 days immediately preceding such period.” Notably, the credit is provided for the first $10,000 of compensation, including health benefits, paid to an eligible employee. Wages paid under the FFCRA are not included as “qualified wages.” The credit is provided for wages paid or incurred from March 13, 2020 through December 31, 2020. The ERTC allows a credit in each calendar quarter against the Old Age, Survivors, and Disability Insurance (“Medicare”) tax – or the Tier 1 tax imposed on employers subject to the Railroad Retirement Tax Act under 3221(a) of the IRC (“Tier 1 Tax”) – in the amount of 50 percent of wages paid by employers to employees during the COVID-19 crisis. The amount of the credit is not to exceed the applicable employment taxes (i.e., the Medicare Tax or the Tier 1 Tax), as reduced by any credits allowed under IRC Section 3111(e)(credit for employment of qualified veterans) and IRC Section 3111(f)(credit for research expenditures of qualified small businesses) and Sections 7001 and 7003 of the Families First Coronavirus Response Act (which provide for a tax credit against amounts equal to 100 percent of the qualified sick leave wages and qualified family leave wages paid by an employer with respect to such calendar quarter) on the wages paid with respect to the employment of all the employees of the eligible employer for such calendar quarter. Therefore, the “applicable employment taxes” (i.e., Medicare or Tier 1 taxes) are first reduced by the presently available credits (i.e., IRC Sections 3111(e) and (f), and those available under the FFCRA), and then further reduced by the ERTC credit. If the amount of the ERTC exceeds the applicable employment taxes for any calendar quarter, such excess shall be treated as an overpayment that shall be refunded under sections 6402(a) (refunding of overpayments) and 6413(b) (same) of the Internal Revenue Code.
The CARES Act allows an employer to defer certain payroll taxes, specifically the employer contribution of Federal Insurance Contributions Act (“FICA”) taxes—with respect to their employees. Typically, the employer is obligated to remit its share (6.2%) of Social Security taxes for each employee’s covered wages to the Treasury electronically on a semi-weekly or monthly basis. The employer payroll tax deferral, which is found in Section 2302 of the CARES Act, allows employers to defer certain payroll taxes incurred between March 27, 2020 (date of enactment) and December 31, 2020. Under Section 2302, employers can defer their 6.2% share of the Social Security tax on each employee’s covered wages for the rest of the year and pay half at the end of 2021 and half at the end of 2022. It is important to note that Section 2302 does not cover other payroll taxes such as the Medicare tax (1.45%) or employee’s share of the Social Security tax. In addition, there is no dollar cap on the total amount of employer social security taxes that may be deferred through December 31, 2020. In similar fashion, the provision outlines tax deferrals in an equivalent amount for self-employed individuals subject to the Self Employment Contributions Act (“SECA”) and employers and employee representatives subject to the Railroad Retirement Tax Act (“RRTA”). Specifically, Section 2302 allows self-employed individuals to defer 6.2% of their SECA tax on net earnings from self-employment (50% of the 12.4% portion attributable to Social Security) and enables employers and employee representatives to defer their 6.2% share of the Tier 1 tax (treated as a Social Security benefit for federal income tax purposes). While the payroll tax deferral may be attractive to most employers (and parties subject to SECA and RRTA tax liability), it is important to note that the tax relief addressed in Section 2302 constitutes a deferral, rather than a waiver of tax obligations. Notwithstanding section 6302 of the Internal Revenue Code, an employer’s payments shall be treated as timely only if fifty percent of the deferred taxes are paid by December 31, 2021 and the remaining fifty percent are paid by December 31, 2022. Please note that the Paycheck Protection Program Flexibility Act (PPPFA) passed on June 5th now allows businesses who get PPP loan forgiveness to also use this Payroll Tax Deferral.
The CARES Act makes technical corrections to the 2017 Act to treat qualified improvement property as 15-year property for depreciation purposes, and makes it eligible for bonus depreciation. These corrections are retroactive to the effective date of the 2017 Act (January 1, 2018).
Refundable AMT credit modification
The corporate alternative minimum tax (“AMT”) was repealed by the 2017 Act. However, corporate AMT credits were made available as refundable credits over several years, ending in 2021. The CARES Act accelerates the ability of companies to recover those refundable AMT credits.
Fiducial is available to answer your questions and to provide guidance on these rapidly evolving issues, challenges and opportunities. In addition to the following, we are closely following the regulations on a state by state level defining essential business and other related matters. Please contact us if we may be of assistance.
Net Operating Loss (NOL) Carrybacks
The CARES Act relaxes the taxable income limitation and carryback limitation on a taxpayer’s use of Net Operating Losses (NOLs). Under the CARES Act, the taxable income limitation is temporarily suspended with retroactive effect, allowing NOLs (whether arising in or carried forward to taxable years beginning in 2018, 2019, or 2020) to fully offset the taxpayer’s taxable income for taxable years beginning before Jan. 1, 2021. Additionally, the CARES Act provides that NOLs arising in a taxable year beginning after Dec. 31, 2017, and before Jan. 1, 2021, generally may be carried back five years. Special rules would apply to real estate investment trusts and life insurance companies. Under the CARES Act, a U.S. shareholder of certain specified foreign corporations may not carry back net operating losses to offset any additional amount includible in its gross income by reason of tax code Section 965(a), a transition tax provision added by the TCJA. The taxpayer may elect, however, to exclude the taxable year in which such amounts are includible in its gross income from the five-year carryback period.
Increased Interest Expense Deduction under IRC s. 163(j)
Section 163(j) limits a taxpayer’s deduction for net business interest expense to 30% of the taxpayer’s “adjusted taxable income” or “ATI” for the taxable year (which is approximately equal to EBITDA for taxable years beginning before Jan. 1, 2022). The CARES Act makes two temporary changes to Section 163(j) that should materially increase the amount of deductions available to taxpayers with indebtedness and significantly increase their available after-tax cash: ● Because taxpayers may have significantly reduced ATI in 2020, the CARES Act allows taxpayers (at their election) to use their adjusted taxable income for their last taxable year beginning in 2019 for purposes of computing the Section 163(j) interest expense limitation for their first taxable year beginning in 2020, which may dramatically increase the amount of interest expense deductions available to the taxpayer. ● The CARES Act generally increases the Section 163(j) interest deduction limitation from 30% to 50% of adjusted taxable income for taxable years beginning in 2019 and 2020.
Filing and payment due date extended from April 15 for all taxpayers, including individuals, associations, trusts and estates, partnerships, corporations, and other non-corporate tax filers. Other taxes included in the deadline extension are corporate income tax, the financial institution excise tax, and the business privilege tax. Waives interest and penalties.
ADOR waives interest and late filing and late payment penalties through July 15, 2020, for any tax payment due on a tax return with a due date on or after March 15, 2020, to provide the relief to taxpayers. Any pass-through entity required to file on March 15, 2020, a composite income tax return and remit payments on behalf of its nonresident members is affected by the COVID-19 pandemic for purposes of the relief described in this Order (Affected Taxpayer). The 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 passthrough entities. No extension is provided for the payment or deposit of any other type of state tax, or for the filing of any other state information return. As a result of the postponement of the due date for filing composite returns and making composite payments from March 15, 2020, to July 15, 2020, the period beginning on March 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 composite returns and to pay composite payments postponed by this Order. Interest, penalties, and additions to tax with respect to such postponed filings and payments will begin to accrue on July 16, 2020. For taxpayers affected by the coronavirus (COVID-19), the due date for filing state income tax, FIET, and BPT returns and making state income tax, FIET, and BPT payments due on or after April 1, 2020, and before July 15, 2020, is postponed to July 15, 2020. For small businesses, restaurants, and other food service businesses unable to pay their state sales taxes due to the impact of COVID-19, late payment penalties will be waived for taxes reported on returns filed for the February, March, and April 2020 reporting periods. Similar relief is provided for state lodgings taxes due for these same periods. 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.
Temporary (30-day) suspension of International Registration Plan (IRP) and International Fuel Tax Agreement (IFTA) requirements.
The deadline for motor vehicle registrations/renewals and property taxes for motor vehicles for the month of March is extended to April 15, 2020. Penalties won't be charged until April 16.
Payments due for corporations income tax. The legislation 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. Corporations income tax filing due August 14, 2020.
ADOR extends income tax deadline from April 15 to July 15, 2020. This includes individual, corporate and fiduciary tax returns and will waive lat filing and lat payment penalties. The deadline for tax year 2020 estimated tax payments remains April 15, 2020. 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 extend the 2019 individual income tax filing date and individual income tax payment date from April 15, 2020, to July 15, 2020. This extension to July 15, 2020 includes 2019 returns of individuals income tax, Subchapter S Corporations, fiduciaries and estates, partnerships and composite returns. 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: 6/15/2020. 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.
Extension of filing and payment (including first and second quarter estimated payments, LLC taxes and fees, non-wage withholding payments), waive interest and penalty, for individuals and businesses.
Small Businesses Now Have Until July 31, 2020 to File First Quarter Returns. the order extends the statute of limitations to file a claim for refund by 60 days to accommodate tax and fee payers. 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. The BOE tax filing deadline for business personal property statements is extended from May 7, 2020, to May 31, 2020. The FTB extension to July 15 applies to the filing of information returns for any person or entity that made reportable transactions during 2019. This extension does not apply to the filing of FTB Form 593, for the reporting of real estate withholding. For paper returns and other documents that must be signed with an original signature by you and/or your tax representative during the postponement period of March 12, 2020, through July 15, 2020, we will not require an original signature, except for Power of Attorneys (POAs). We will accept 2 signature alternative methods for paper returns: Method 1: An attached document that must be included with the filed return that provides a copy of the original signature. The attached document should: Identify what the document signature is for (Example: Corp XX, 2019 Form 100), State “Refer to the attachment for a copy of the original signature” on the signature line;or Method 2: A paper return with a faxed signature on the signature page. For all other documents, except POAs, filed with us that require an original signature, we will accept documents with photographed or digital copies of required signatures. You can also upload a document with a signature into MyFTB. Please note that only PDF and Excel documents are currently accepted. These temporary procedures do not apply to filing a POA. Follow the procedure on Submit a power of attorney if you need to submit a POA to us. We implemented a temporary suspension on a number of collection activities within our personal income tax, business entity tax, and nontax debt (court-ordered debt and vehicle registration collection) programs through July 15, 2020: Wage attachments, bank levies, liens, and field agent calls/visits are suspended; Suspension of business entities with the Secretary of State (SOS) are delayed; The Top 500 Delinquent Taxpayers List is delayed An extension has been granted to taxpayers whose financial hardship was scheduled to expire. We’ve suspended Requests, Demands, and related Notices of Proposed Assessment for prior year returns until July 15. 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. Per FTB, COVID-19 CARES Act - The CARES Act economic impact payments from the federal government are not subject to California income tax. The CARES Act emergency increase in unemployment compensation benefits (in the amount of $600 per week) that individuals receive are not subject to California income tax. The CARES Act modifications for NOLs do not apply for California income and franchise tax purposes. The federal early withdrawal penalty waivers for distributions from qualified retirement accounts under the federal CARES Act also applies for California income tax purposes.
Payment and filing deadline for all Colorado taxpayers state income taxes and estimated taxes is extended by 90 days until July 15, 2020 – and automatic 6 months extension to file until October 15, 2020. Interest from the due date of the payment until July 15, 2020 is waived. All income tax returns that were required to be filed by April 15, 2020 are granted an automatic six-month extension, and the filing is due on or before October 15, 2020. In addition, the deadline for estimated payments has also been extended for the 2020 tax year. The penalties for estimated payments are also waived until July 15, 2020. This extension and these waivers do not apply to payments due pursuant to a notice of deficiency, notice of final determination, demand for payment, installment agreement, closing agreement, or other agreement or requirement to pay. The relief does not apply to other returns, filings, or payments required to be made, including, but not limited to, withholding tax. Colorado retailers that are required to file a sales tax return and remit sales tax on April 20, 2020 may extend their filing and remittance deadline to May 20, 2020. This is a one-time extension of the April 20, 2020 filing and remittance deadline for state and state-administered sales taxes. The extension does not apply to self-collecting homerule jurisdictions. The Department will waive penalties and interest that may accrue retailers that file their return and remit the full amount of state and state-administered sales tax due April 20, 2020 on or before May 20, 2020. Coordinate with local governments to extend tax payment deadlines for property, sales and use taxes and take whatever action they need to let them waive penalties and fees. Colorado extends the filing and remittance deadline for certain sales taxes from the April 20, 2020 filing and remittance deadline to May 20, 2020. All Colorado Department of Revenue offices will close all facilities to the public.
Connecticut will be 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. Form CT-1041 returns and payments for trusts and estates with a due date of April 15, 2020, have been extended to July 15, 2020. 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. The extension does not apply to the withholding tax. Gifts made during taxable year 2019 are reported on Form CT-706/709. This extension does not apply to estate tax. Extended filing and payment for sales tax returns if meet criteria. Taxpayers that have $150,000 or less in annual Sales Tax liability qualify for an automatic extension of time to file and pay. Similarly, taxpayers that have $150,000 or less in annual Room Occupancy Tax also qualify for this relief. A taxpayer that collects both Sales Tax and Room Occupancy Tax must evaluate each tax separately to determine eligibility for relief. For monthly Sales Tax and Room Occupancy Tax filers: returns and payments due March 31, 2020, and April 30, 2020, are extended to May 31, 2020. For quarterly Sales Tax and Room Occupancy Tax filers: returns and payments due April 30, 2020, are extended to May, 31 2020. The deadline to submit additional documentation for a Connecticut EITC claim has been extended to July 15, 2020. Pursuant to Executive Order No. 7N issued by Governor Lamont, the Plastic Bag Fee is suspended from March 26, 2020, through May 15, 2020. Business returns (pass-throughs, UBIT, corporate) – extended filing and payment to due June 15. DRS extending the deadline for filing certain protests with the DRS' Appellate Division by nintey (90) days.
The due date for business returns and payments due between March 15, 2020, and June 1, 2020, for the following tax types was extended: Pass-Through Entity Tax, Unrelated Business Income Tax, Corporation Business Tax – filing and payment extended to June 15, 2020. On March 16, 2020, DRS announced that the due date for the annual state business tax returns listed above was extended 30 days and payments are due on or before June 15, 2020. The business income tax extension for corporation business tax, unrelated business income tax, and pass-through entity tax applies to fiscal year end filers with a due date between March 15, 2020, and May 31, 2020. The due date is NOT 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. The extended business income tax filing and payment deadlines do NOT apply to returns already on extension. The deadline for filing an amended 2016 Form CT-1120, Form CT-1120CU, Form CT-990T, or Form CT-1065/CT1120SI has NOT been extended.
Extended filing and payment due dates - Corporate tentative returns, personal income tax returns, fiduciary income tax returns that would be due on April 15, 2020 will now be due on July 15, 2020. 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. Any extension forms that would otherwise be submitted on paper may be submitted electronically to DOR at vog.erawaled%40ecivreScilbuP_ROD. Please note an extension only extends the due date for filing, not for payment. The payment deadline will be July 15, 2020 and penalties and interest on underpayments will be calculated from that date, even if a taxpayer requests an additional extension of time to file. Additionally, throughout the COVID-19 Emergency, DOR continues to work with taxpayers who owe outstanding balances. If you owe taxes to DOR and need assistance, you may reach our collections team via email at vog.erawaleD%40snoitcelloC_ROD. Taxpayers are encouraged 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.
The deadline for taxpayers to file and pay individual and fiduciary income tax returns, partnership tax returns, and franchise tax returns is extended to July 15, 2020. The deadlines for individual and business taxpayers to file their Tax Year 2020 estimated tax payments (Forms D-40ES, D-41ES, D-20ES, and D-30ES) remain unchanged. The first quarter payments are due April 15, 2020, and the second quarter payments are due June 15, 2020. OTR will abate interest and waive penalties for failure to timely pay sales and use tax due for periods ending on February 29, 2020 and March 31, 2020, provided certain conditions are met. 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, D40ES 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. 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.
Florida corporate income tax return payments and extension requests due, and 8/3 – returns filing due (for fiscal year ending 12/31/19 and 1/31/20) instead of the May 1 (for 12/31/19 taxpayers) and June 1 (for 1/31/20 taxpayers) original due dates. For fiscal years ending 2/29/20, 7/1 remains the payment deadline and the filing deadline is extended to 8/3 return (instead of originally 7/1). This emergency order does not change the current due dates for Florida CIT estimated payments due between April 1, 2020 and July 15, 2020. Florida CIT payments should be based on the corporation’s best estimate of the amount that would be due with the returns. Pinellas County, Florida: Tangible Personal Property (TPP) Return update: As a result of COVID-19, all TPP accounts will be granted an automatic 45-day extension to file their TPP returns, extending the due date for the returns to May 15th, 2020. Miami Dade County, Florida: Deadline extended for taxpayers filing a tangible personal property return, Form DR-405, due to the unfortunate circumstances regarding the Coronavirus (COVID-19). Taxes collected in February and due on or before March 20, 2020 – waive penalty and interest for taxpayers who collected these taxes in 2/20 but unable to meet the due date if the taxes are reported and remitted by 3/31/20: Sales and Use Tax (includes Discretionary Sales Surtax), Tourist Development Tax (for counties administered by the Department), New Tire Fees (Solid Waste and Surcharge Return), Rental Car Surcharge (Solid Waste and Surcharge Return), Prepaid Wireless E-911 Fee, Lead Acid Battery Fees (Solid Waste and Surcharge Return), Dry-Cleaning Gross Receipts (Solid Waste and Surcharge Return). For the March 2020 Reporting Period - taxes collected in March and due on or before April 20, 2020 - taxpayers not adversely affected by the COVID-19 outbreak are required to continue to file and remit on or before April 20, 2020, for taxpayers adversely affected (as defined in paragraph 2.C. below) by the COVID19 outbreak, the Department will extend the due date to April 30, 2020, for any of the Feb. mentioned above taxes collected in March Adversely affected is defined as: the business closed in March 2020 in compliance with a state or local government order issued in response to the COVID-19 outbreak and following the closure had no taxable transactions for the taxes listed in paragraph 2.8. above; 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. Tax-related issues pertaining to COVID-19 can be emailed to moc.euneveradirolf%40PLEHXAT91DIVOC
Georgia extending the 2019 income tax filing and payment deadline to July 15, 2020, without penalties or interest - 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 and June 15, 2020 for the taxpayer’s 2020 taxable year. Additional extensions to conform to IRS deadlines extension – June 15 estimated payments extended to July 15, 2020, any income tax return and payment due after April 15, 2020 and before July 15, 2020 is now due on July 15, 2020, including additional corporate filers and other fiscal year income tax filers, statute of limitations to file a refund claim for a previous tax year has been extended to July 15, 2020, a 30-day extension for DOR to perform certain time sensitive actions (including audit or exams, protests or appeals, refund claims for previous tax years)if the last date to perform the action is on or after April 15, 2020 and before July 15, 2020. No extension is 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. 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. The Department will not use someone’s relocation, that is the direct result of temporary remote work requirements arising from and during the Corona Virus 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.
Filing and payment of 2019 income tax returns (does not include 2020 estimated payments) extended 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. Waives interest and penalties and additions to tax for failure to file or pay if file and pay by July 20. The relief provided in this Announcement applies solely to returns and payments for an Affected Taxpayer’s 2019 taxable year due from April 20, 2020 to June 20, 2020. The relief provided in this Announcement does not include estimated income tax payments for the 2020 taxable year. For purposes of automatic extensions for Affected Taxpayers, the postponed payment deadline of July 20, 2020 will be used. This means that for Affected Taxpayers, “properly estimated tax liability” must be paid by July 20, 2020 rather than April 20, 2020 and returns must be filed by October 20, 2020. Affected Taxpayers subject to penalties or additions to tax despite the relief granted by this Announcement may seek reasonable cause waivers. The relief provided by this Announcement is limited to Hawaii income tax payments and does not extend to withholding tax, franchise tax, public service company tax, general excise tax, transient accommodations tax, estate tax, or any other tax not specifically identified for the relief provided by this Announcement. The Tax Announcement applies to individuals, trusts and estates, corporations, and other noncorporate tax filers as well as those who pay self-employment tax. 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. 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. 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). 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. All DOR offices are closed to the public, use secure web messaging on Hawaii Tax Online or call (808) 587-4242.
Return filing and payment extension applies to all taxpayers – including individuals, businesses, and entities – regardless of the amount owed. Penalty and interest waived if file and pay the income tax they owe by June 15. Also extended deadline to apply for property tax relief programs from April 15 to June 15. We’ve extended the due date for income tax estimated payments that are normally due April 15 to June 15. This includes fiscal-year tax filers. The due date to apply for property tax reduction, deferral, or the 100% service-connected disabled veteran’s benefit is now June 15. We don’t expect any other property tax deadlines to change. You can get an automatic extension to file your return by October 15 if you pay enough of your total tax by June 15. To qualify, you need to do one of the following: Pay 100% of the income tax reported on your 2018 return (if you filed a return), or pay 80% of the estimated tax due on your 2019 return.
Filing and payment relief to individuals and businesses for Illinois income tax returns is extended from April 15, 2020, to July 15, 2020 – 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. 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. This does NOT impact the first and second installments of estimated payments for 2020 taxes that are due April 15 and June 15. Taxpayers are required to estimate their tax liability for the year and make four equal installments. Taxpayers will not be assessed a late estimated payment penalty if the amount of the installments equals 90% or more of the current year’s liability or 100% of the previous year’s liability. IL DOR has said only overpayments created by returns or extensions filed by 4/15 will apply to a 2020 Q1 estimate and be considered timely. Otherwise, any overpayments are applied to the quarter received. This is how the system defaults. IDOR will waive penalties and interest for out-of-state employers who fail to withhold Illinois income taxes for Illinois employees where the sole reason for the Illinois withholding obligation is that the employee is working from home due to COVID-19 pandemic. Estates with returns and payments due between March 16, 2020 and April 15, 2020 will receive a 30 day extension for filing and payment. An extension of time to pay does not waive or abate statutory interest. Chicago will temporarily defer all business fine collections as well as license renewal and late fees for Chicago’s businesses until April 30, 2020. The City will also be temporarily suspending non-public safety related business penalties until April 30. Chicago extends due dates for tax payments until April 30, 2020 for the following City of Chicago taxes: bottled water tax, checkout bag tax, amusement tax, hotel accommodation tax, restaurant tax, parking tax.
Individuals and corporate tax returns - filing and payments extended from April 15 and April 20. Those originally due May 15 are due August 17, 2020. It includes estimate payments due April 15 are now due July 15, 2020. All other tax return filings and payments remain unchanged. As a result of the extensions for estimated payments for Individual and Corporate filers who file on a calendar year basis this means that the 1st estimated payment, normally due in April, will now be due after the 2nd estimated payment which remains due in June. Business trust filings and payments remain due on their current monthly cycle due dates. If your business is closed temporarily and has no tax revenue for a filing period, you must file a return indicating $0 for that period ($0 return). If a business is permanently closed, an Indiana tax account is no longer needed. Please complete Form BC-100. Due dates for sales tax, withholding and all other taxes collected by merchants have not been extended. All filing and payment deadlines and rules remain in effect. Due to the COVID-19 outbreak. Indiana DOR will accept a Federal power of attorney (POA) to serve temporarily as the Indiana POA until further notice in certain circumstances: The tax/form type on the Federal POA matches or is similar to the Indiana tax/form for which the person seeks to represent the client; The requested representation is only for non-legal matters. (Any temporary acceptance of the Federal POA would not extend to protests of assessments or refund denial matters); and The Federal POA was executed on or before March 6, 2020. [the date Governor Holcomb issued Executive Order 20-02, decreeing a public health emergency]. 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 the guidance will extend for periods of time where: there is an official work from home order issued by an applicable federal, state, or local government unit, or 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. 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. 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 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. 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, or2. 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 soley 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. Property taxes extended from April 1 to June 30. The waiver does not apply to tax payments which have been escrowed by financial institutions on behalf of property taxpayers. Manufacturers making donations of medicine, medical supplies or other eligible items to fight the COVID19 pandemic in Indiana will not incur a use tax obligation for those donations; and Groups 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. 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.
Return filing and payment due 3/19-7/31 – individual, composite, fiduciary, corporation, franchise tax, partnership, S corp, credit union – no late filing or underpayment penalties. Interest starting 8/1/20. Relief does not apply to estimated taxes. Relief includes fiscal year returns. The filing and payment extension applies to any tax return and associated tax payment listed in Order 2020-01 with a due date on or after March 19, 2020, but before July 31, 2020. The filing and payment extension does not apply to estimated tax payments. A calendar-year filer’s 1st quarter and 2nd quarter 2020 estimated payments are due on April 30, 2020, and June 30, 2020, respectively. Estimated taxes were specifically excluded from the relief in Order 2020-01. The estimated tax underpayment penalty relief provided in Order 2020-03 only applies to certain estimated tax installments due for tax years that begin in 2020. For example, 2019 estimated tax payments for calendar year filers were due in four installments (e.g. April 30, June 30, September 30, January 31, 2020) and these penalties are imposed for failure to make adequate estimated payments on time. Those estimated payments are not covered by these Orders. Penalties calculated on the 2019 IA 2210, 2210F, or 2210S (individuals) or 2019 IA 2220 (corporations and financial institutions subject to franchise tax) still must be paid with the Iowa return. The same outcome would apply to fiscal-year filers for tax years that began in 2018 or 2019 with due dates that fall within the period covered by Order 2020-01. Because estimated payments were specifically excluded from Order 2020-01, underpayment penalties due on required payments during the period covered by that order and those returns will still apply. Previously extended tax returns that have an extended due date on or after March 19, 2020, but before July 31, 2020, benefit from the filing extension to July 31, 2020. Note, however, that under Iowa law an automatic extension only extends the time to file a return, not to pay the tax. Therefore, taxpayers with tax due prior to March 19, 2020 may accrue interest on the balance of unpaid tax. The suspension of interest only applies to interest that accrues between March 19, 2020, and July 31, 2020. Order 2020-03 allows taxpayers to use their 2018 income tax liability (or 110% of their 2018 liability for high income taxpayers) to compute safe harbor estimates for 2020 estimated tax installment payments with a due date on or after April 30, 2020, and before July 31, 2020. For most individuals, this additional relief will apply to their 1st and 2nd quarter estimates for tax year 2020 due on or before April 30, 2020, and June 30, 2020. A taxpayer will not be subject to penalties for underpayment of estimated tax with respect to both installments due on April 30, 2020, and June 30, 2020, if the individual pays the following amounts for each installment payment:• 27.5% of their 2018 Iowa tax liability for a taxpayer whose 2018 federal adjusted gross income (as adjusted for any Iowa decoupling including bonus depreciation/section 179 adjustment) is greater than $150,000, or greater than $75,000 for a married filing separate taxpayer; or• 27.5% of their 2018 Iowa tax liability for a taxpayer whose 2018 federal adjusted gross income (as adjusted for any Iowa decoupling including bonus depreciation/section 179 adjustment) is greater than $150,000, or greater than $75,000 for a married filing separate taxpayer; or • 25% of their 2018 Iowa tax liability for any other taxpayer. As a result, for taxpayers who computed their tax year 2019 safe harbor estimates using their 2018 tax liability, and had no change in their withholding since 2019, their 1st and 2nd quarter safe harbor estimated payments for tax year 2020 will match their tax year 2019 required quarterly estimated payment. However, any taxpayer who takes advantage of the underpayment penalty relief provided in Order 2020-03 must add the remaining amount due for these installments to their next installment due on or after July 31, 2020. For most individuals, this will increase the required 3rd quarter estimate due September 30, 2020. Failure to pay the increased required installment by the taxpayer’s first due date on or after July 31, 2020, will be considered an underpayment of estimated taxes for the installment. The relief granted in Order 2020-03 is available to any taxpayer required to make a tax year 2020 estimated income tax payment on or after April 30, 2020, but before July 31, 2020. If an overpaid an installment, the overpayment will be carried to the next installment due. The underpayment of estimated tax penalty is calculated separately for each quarter. To avoid penalties, the taxpayer must timely pay at least 25% (or 27.5% for a high income taxpayer) of the 2018 income tax liability with the 1st quarter income tax estimate and by the due date of the 2nd quarter installment, the taxpayer must pay at least 50% (or 55% for a high income taxpayer) of the 2018 income tax liability, if the relief granted in Order 2020-03 is utilized. Individuals may be able to reduce or eliminate the amount of one or more of your required installments by using the annualized income installment method calculated on the IA 2210 Schedule AI. Individuals who cannot pay quarterly estimates may apply to the Department for a waiver of underpayment penalty. Deadlines for the IA 1041 Fiduciary Income Tax Return filed by estates and trusts are extended by the Order, but the Order does not extend payment and filing deadlines related to the IA 706 Inheritance Tax Return. The regular deadline for paying Iowa inheritance tax reported on an IA 706 is the last day of the 9th month following the death of the decedent. A taxpayer’s PPP loan that is forgiven and properly excluded from federal gross income under section 1106 of the federal CARES Act in a tax year beginning on or after January 1, 2020, will also qualify for exclusion from income for Iowa tax purposes. The COVID-19 economic impact payments authorized in section 2201 of the federal CARES Act, whether in the form of a rebate or a refundable tax credit, will not be included in Iowa taxable income or added back as part of an individual’s reportable federal income tax refund for Iowa individual income tax purposes. The Department does not believe that the presence of employees who normally work outside of Iowa, but who are now working remotely from within the state solely as a result of the COVID-19 pandemic state of emergency represents the same type of business activity on the part of the employer contemplated by the law. Therefore, while Iowa’s state of emergency in response to COVID19, or similar declared state of emergency in the state where the worker normally worked prior to the COVID-19 pandemic, remains in effect, the Department will not consider the presence of one or more employees working remotely from within Iowa solely due to the COVID-19 pandemic, by itself, sufficient business activity within the state to establish Iowa corporate income tax nexus. Nor does the Department consider such presence by non-sales employees due to the pandemic sufficient, by itself, to cause a corporation to lose the protections of Public Law 86-272. Iowa individual income tax and withholding requirements have not been modified by the COVID-19 pandemic. Iowa individual residents are subject to tax on their entire income, wherever earned, so an Iowa resident’s income tax return filing requirements should not be affected by temporary telecommuting in Iowa or another state. Nonresidents of Iowa who normally work in Iowa but are temporarily telecommuting in another state, or who normally work outside of Iowa but are temporarily telecommuting in Iowa, may need to adjust their income apportionment or their Iowa income tax return filing requirement. Sales tax and/or withholding tax permit holders can apply for the Small Business Relief Tax Deferral. Factors considered during application review: industry type; current standing with the Department; and, economic loss related to COVID-19 – provides 60 days penalties and interest waived. Sales tax, including any consumer’s use tax reported by a taxpayer on a sales tax return, and withholding tax are included. Retailer’s use tax and consumer’s use tax are not eligible. Returns and payments for sales and withholding, due between March 20, 2020 and April 30, 2020 are eligible. Iowa waives penalty and interest that would have accrued if someone did not pay property tax by April 1, 2020.
State employees have been directed to stay home on administrative leave for two weeks, starting March 23. A couple of areas within the Department of Revenue will remain operational, with limited staff.
Kansas is extending tax filing and payment deadlines to July 15, 2020, and waiving any interest and penalties for returns and payments made on or before July 15, 2020 - for Individual Income Tax, Fiduciary Income Tax, Corporate Income Tax and Privilege Tax - for calendar year tax returns and fiscal filers with due dates between April 15, 2020 and July 15, 2020, to conform to the extended due date of July 15, 2020. Homestead or property tax relief refund claims has extended the deadline for filing 2019 claims to October 15, 2020. For the Individual Income Tax, Corporate Income Tax, Privilege Tax, the Director of Taxation will waive any applicable penalty and interest for taxpayers whose first-quarter 2020 estimated tax payments are made after April 15, 2020 but on or before July 15, 2020. 1st Quarter Estimated Due date - April 15, however, interest and penalties are waived for first quarter if paid before July 15. 2nd Quarter Estimated Due date - June 15.
Kentucky extending the 2019 Kentucky income tax return filing and payment due date from April 15, 2020 to July 15, 2020 for individual, corporate, limited liability, fiduciary, and pass-through filers with filing and payment deadlines of April 15, 2020 will now be due July 15, 2020. Waiving late filing and payment penalties (and interest as well as that is in legislation enacted 3/30/20) on 2019 Kentucky income returns that are filed and paid by 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. The Kentucky relief applies only to income taxes. Tax districts are authorized to suspend or extend return deadlines for taxable net profits or gross receipts during the state’s declared emergency. 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. 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 individual, fiduciary and passthrough filers, and November 15, 2020 for C corporation filers. In-Person assistance from the Kentucky Department of Revenue suspended.
Filing and payment extension relief for income and franchise tax returns and payments due on April 15 and May 15, 2020 are extended to July 15. No penalties or interest assessed if return and payment are submitted by July 15. 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. An extension period shall run from July 16, 2020, to the general extension date of November 15, 2020 for individual, fiduciary, and partnership returns and December 15, 2020, for corporation returns. Interest and penalties shall accrue beginning on July 16, 2020, on the outstanding balance of tax due. Estimated taxes are not covered in the relief. According to the DOR, the first and second quarterly declaration payments remain due on April 15 and June 15, respectively. 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: a. The taxpayer pays the April 15 and June 15, 2020, declaration payments timely. b. 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. c. 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 pass-through entity tax 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. The credit transfer must include any applicable statutorily mandated transfer fee. This fee remains due at the time of submission of the credit transfer documentation. To qualify for penalty relief, the taxpayer must file the March and April 2020 sales tax returns and remit the sales tax and any deficiency interest by June 30, 2020. If a taxpayer is unable to remit the sales tax and any deficiency interest by this date, penalty relief will be granted if the taxpayer submits and enters into an Installment Request for Business Taxes by June 30, 2020. The filing and payment deadline for the February 2020 sales tax and excise tax is extended to May 20, 2020 - automatic extension - waive penalty and interest New Orleans waive fines, fees, interest and penalties on sales tax payments due to the City for 60 days
Maine extend filing and payment from April 15 to July 15 – waive late fees and interest. This includes any final and estimated Maine income tax payments due by April 15, 2020. Any failure-to-pay penalties and interest will be abated for the period of April 16, 2020, through July 15, 2020. Sales tax and payroll payments will continue as normal. Maine Revenue Services Announces Public Access Limited To Only Accepting Tax Payments. Taxpayers may still seek assistance via telephone. All MRS telephone and email contact information is available at:www.maine.gov/revenue/contact.html. This includes the Taxpayer Service Center at (207) 624-9784 and the Property Tax Division at (207) 624-5600.
Filing and payment extension for individuals, corporate, pass through entity, and fiduciary taxpayers income taxes – waive interest and penalty for late payments made by July 15. Fiscal and calendar year filers with tax years ending January 1, 2020 through March 31, 2020 are also eligible for the July 15, 2020 filing and payment extension. The due date for March quarterly estimated payments is 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. The extension for filing returns and payment of income tax does not affect the filing of estate tax returns or the payment of estate tax. 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. The cessation of collections is effective immediately and shall continue until 30 days after the lifting of the state of emergency by the Governor. Pursuant to this action, 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. The agency will temporarily stop processing paper tax returns on April 15. 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.
The Comptroller’s office will temporarily accept images of signatures (scanned and photographed) and digital signatures on certain documents. The scope is limited to the determination and collection of liabilities. As part of this initiative, the limited documents include extensions of statute of limitations on assessment or collection, waivers of statutory notices of deficiency and consents to assessment, or agreements to specific tax matters or tax liabilities (closing or settlement agreements). In addition, the Comptroller’s office will allow Comptroller employees to send and accept documents via secure email. Any taxpayer can request that a secure email be sent by a Comptroller employee. Alternatively, the Comptroller will accept password protected attachments using certain programs. In order to send a document with the digital signature, the taxpayer or representative must include a statement, either in the form of an attached cover letter or within the body of the email, saying to the effect: “The attached [name of document] includes [name of taxpayer]’s valid signature and the taxpayer intends to transmit the attached document to the Comptroller of Maryland.”1 The choice to transmit documents electronically is solely that of the taxpayer. The office will consider the temporary nature of a business’s interim workplace model and employee deployment in light of the current health emergency in making a nexus determination, whether the business correctly sourced income, and whether the business properly withheld and reported employee state withholding.
The Office will consider the temporary nature of a business’ interim workplace model and employee deployment in light of the current health emergency in making a nexus determination, whether the business correctly sourced income, and whether the business properly withheld and reported employee state withholding.
Extended Feb, Mar., and April filings and payments to June 1 for sales and use tax, withholding payments, admissions and amusement tax, tobacco tax, motor carrier and motor fuel taxes, Bay restoration fees.
Unclaimed property reports and payments for insurance companies for 2019 calendar year are extended from April 30 to July 31, 2020.
Cessation of collection efforts is effective immediately until 30 days after the lifting of the state of emergency by the Governor. 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.
While the 1st quarter contribution and wage reports for UI will be due on April 30, 2020, we will consider tax payments for the 1st quarter to be received timely if received by June 1, 2020.
The May 15, 2020 deadline for all owners of income producing real property to submit Income and Expense Questionnaires under TaxProperty Article § 8-105 will be extended to July 15, 2020. The deadline to submit 2020 Annual Reports and Personal Property Tax Returns for businesses will be automatically extended to July 15, 2020. April 15 Franchise Tax Return and April 15 franchise tax payment due dates will be extended to 30 days after the state of emergency is rescinded. Expiration dates for trade names and name reservations, as well as entity forfeiture dates will also be extended to 30 days after the state of emergency is rescinded. The Maryland Department of Assessments and Taxation (SDAT) released 14 new online services on Maryland Business Express to make it easier for businesses to get back into "Good Standing" status, a requirement necessary for many times of Coronavirus-related relief. Some of these new online filing options are for businesses needing to revive, and the Department is waiving any related online expedited fees to help Marylanders keep their businesses active. The Department has also created a new Good Standing Checklist that will make it easier for business owners to proactively determine whether or not their business is in Good Standing with SDAT, and instruct them how to correct any deficiencies. Learn more about these online services here.
Massachusetts moves the state income tax filing and payment deadline to match the July 15 deadline for filing federal individual and first and second installments of estimated taxes, estate and trust income taxes and partnership composite returns. Corporate excise taxes will have until July 15 with no penalty for late filing or late payment but interest is not waived. 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. Interest applies to corporate excise tax payments made after 4/15. While individual / fiduciary returns are automatically extended if the payment is made 7/15, corporations are NOT automatically extended if the payment is made on 7/15. They need to extend on 4/15, or else penalties could apply from 7/15 through the final filing / payment date. Taxpayers that previously filed their 2019 returns but have not yet made the associated payments have until July 15, 2020 to make such payments. The Commissioner has determined that the first and second installments of estimated tax, due April 15, 2020 and June 15, 2020, respectively, will now be due July 15, 2020. 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. 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. The Corp. Q1 estimated payment is due 3/15, and the return is due 4/15. Any overpayment on the MA CIT return is applied to Q2, not Q1. 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. The Department will not consider the presence of one or more employees working remotely from Massachusetts solely due to the COVID-19 pandemic to be sufficient in and of itself to establish corporate nexus. In addition, such presence will not, of itself, cause a corporation to lose the protections of Public Law 86-272. For the duration of the Massachusetts COVID-19 state of emergency, all compensation received for personal services performed by a nonresident who, immediately prior to the Massachusetts COVID-19 state of emergency, was an employee engaged in performing such services in Massachusetts, and who, during such emergency, is performing such services from a location outside Massachusetts due solely to the Massachusetts COVID-19 state of emergency, will continue to be treated as Massachusetts source income subject to personal income tax under M.G.L. c. 62 and personal income tax withholding. Other states have adopted or are adopting similar sourcing rules due to similar declared states of emergency. A resident employee suddenly working in Massachusetts due to a state’s COVID-19 state of emergency who continues to incur an income tax liability in that other state because of that state’s sourcing rule will be eligible for a credit for taxes paid to that other state under G.L. c. 62, § 6(a). In addition, the employer of such employee is not obligated to withhold Massachusetts income tax for the employee to the extent that the employer remains required to withhold income tax with respect to the employee in such other state. For the duration of the Massachusetts COVID-19 state of emergency, an individual who previously performed services outside of Massachusetts and was not subject to PFML will not become subject to PFML solely because the individual is temporarily working from home in Massachusetts due to the emergency as declared by such other state. Likewise, an individual who previously performed services in Massachusetts but is temporarily working from home outside of Massachusetts solely due to the Massachusetts COVID-19 state of emergency continues to be subject to the PFML rules. For purposes of this Directive, when a taxpayer seeks to use an electronic signature it must include a statement, either in the cover letter or in the email transmitting the electronically signed document, that says, to the effect, as follows: “The attached [insert document name] includes [insert name of taxpayer or representative]’s valid signature and the taxpayer intends to transmit the document to the Massachusetts Department of Revenue.” The Department will work cooperatively with taxpayers to allow for electronic signatures on various administrative forms, including with respect to the signatures of taxpayers, their representatives, or Department employees. The administrative forms for which the Department will allow electronic signatures will include but not be limited to: Form A-37: Consent Extending the Time for Assessment of Taxes, Form B37: Special Consent Extending the Time for Assessment of Taxes, Form DR-1: Office of Appeals Form and Form M-2848: Power of Attorney and Declaration of Representative. For other forms not listed herein, the Department will work with taxpayers to confirm the parties’ declaration of intent to sign electronically. Massachusetts tax implications of the federal CARES Act - Individual Income Tax Provisions - (1) 2020 Recovery Rebates to Individuals - Since the advance payment of a credit under the Act is not includable in federal gross income, it is not includable in Massachusetts gross income and thus not subject to the Massachusetts personal income tax. (2) Expansion of Unemployment Benefits - All payments of unemployment compensation, including amounts authorized under the Act, are includable in both federal and Massachusetts gross income and subject to Massachusetts personal income tax. (3) Tax-favored Withdrawals for Retirement Plans -, There is no Massachusetts analog to the Code § 72(t) penalty. Therefore, this change has no practical Massachusetts tax impact. (4) Loans from Qualified Employer Retirement Plans - for Massachusetts purposes a loan from a qualified employer plan will be treated as a distribution to the extent it is so treated for federal purposes. (5) Temporary Waiver of Required Minimum Distribution Rules for Certain Retirement Plans and Accounts - because Massachusetts has no analog to the federal penalties at issue, these changes have no practical Massachusetts tax impact. (6) Allowance of Partial Above-the-Line Deduction for Charitable Contributions - Massachusetts does not adopt the addition of subsection (22) to Code § 62(a) because Massachusetts generally follows Code § 62(a) as in effect on January 1, 2005, with the exception of Code § 62(a)(1). However, for tax years beginning on or after January 1, 2021, Massachusetts law separately allows a deduction for charitable contributions, with no itemization requirement. The forthcoming Massachusetts charitable deduction remains in effect and is unaffected by the Act. (7) Modification of Limitation on Charitable Contributions During 2020 - Massachusetts does not follow the Act’s temporary easing of the limitation in Code § 170 for personal income tax purposes. The forthcoming Massachusetts charitable deduction remains in effect and is unaffected by the Act. (8) Exclusion for Certain Employer Payments of Student Loans - Massachusetts does not conform to the revisions made by the Act. Therefore, qualified education loan payments made by an employer are not excluded from an employee’s Massachusetts gross income. Likewise, Massachusetts does not conform to the disallowance of the deduction for interest paid by an employee on such loans. (9) Modification of Limitation on Losses for Taxpayers Other than Corporations - Massachusetts did not adopt Code § 461(l) as enacted in the TCJA. Therefore the suspension of the limitation has no impact for Massachusetts tax purposes. (10) Use of Health Savings Accounts, Flexible Spending Accounts, and Archer Medical Savings Accounts for Telehealth Services and Over-the-Counter Medical Products - With respect to Code §§ 106 and 223, Massachusetts follows the Code as currently in effect and therefore excludes from gross income reimbursements from an HSA or FSA for medicine or drugs without a prescription and allows a deduction for contributions to, and excludes from gross income reimbursements from, an HSA in relation to certain remote care services for plan years beginning prior to or on December 31, 2021. However, because Massachusetts follows Code § 220 as amended and in effect on January 1, 2005, Massachusetts does not exclude reimbursements for these expenses when paid by an Archer MSA. C. Corporate and Business Tax Provisions - (1) Small Business Loan (PPP) Forgiveness - For a borrower subject to Massachusetts personal income tax, any amount forgiven under § 1106 of the Act is includable in gross income and subject to tax, and there is no disallowance of deductions attributable to the payment of expenses resulting in the forgiveness of the loan. For purposes of the corporate excise, Massachusetts follows the Code as currently in effect. Therefore any amount forgiven for a corporate borrower under § 1106 of the Act would be excluded from Massachusetts gross income, and any deductions disallowed in accordance with IRS Notice 2020- 32 would likewise be disallowed for Massachusetts tax purposes. Costs and expenses paid using PPP loan amounts that are ultimately forgiven are not eligible for any of the credits authorized under either M.G.L. c. 62 or M.G.L. c. 63. (2) Modifications to the Limitations on Net Operating Losses - The suspension of Code § 172 limitations has no impact for Massachusetts tax purposes. (3) Modifications to Limitation on Business Interest Deduction - Massachusetts adopts these changes subject to the rules outlined in TIR 19-17. (4) Technical Amendments Regarding Qualified Improvement Property - Massachusetts adopts the changes made by the Act with respect to the depreciable life of QIP for property placed in service after December 31, 2017. However, because Massachusetts is decoupled from the bonus depreciation rules in Code § 168(k), the Massachusetts depreciation deduction for QIP must be calculated under Code § 168 without regard to § 168(k). (5) Modification of Limitation on Charitable Contributions During 2020 - Massachusetts adopts the temporary easing of the limitation for corporate excise purposes.) Relief for restaurant and hospitality sectors - waive late file and late pay penalties and interest for meals tax and occupancy tax March 20 – May 31. DOR is actively monitoring the latest developments regarding the COVID-19 coronavirus.
Due dates moved to July 15 (individual) and July 31 (corporate) – Michigan – state and city individual income tax returns, July 31 – corporate income tax returns for state and city – includes first and second quarter estimated payments originally due April 15 and June 15 (individual) and April 30 (corporate) are due July 15 (individual) and July 30 (corporate) – waives penalty and interest. Any applicable penalties and interest will not begin to accrue until July 16, 2020 for any remaining unpaid balances due on July 15, 2020, and will not begin to accrue until August 1, 2020 for any remaining unpaid balances due on July 31, 2020. the 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. An annual city income tax returns otherwise due on April 15, 2020 (individual) and April 30, 2020 (corporate), and any accompanying city income tax payment (including estimated city income tax extension payments due April 15 and April 30) due with the return, will instead be due on July 15, 2020 (individual) and July 31, 2020 (corporate) respectively. Any applicable penalties and interest will not begin to accrue until July 16, 2020 for any remaining unpaid balances due on July 15, 2020, and will not begin to accrue until August 1, 2020 for any remaining unpaid balances due on July 31, 2020. The Hearings Division will now be accepting requests for informal conference via email to .vog.nagihciM%40sgniraeHsaerT Treasury also has a new Form 5713 (Request for Hearing/Informal Conference) which may be submitted to request an informal conference. It is located in the forms and instructions section under the Treasury Hearings and Appeals website located at www.michigan.gov/treasuryhearings. The form is not mandatory; however, use of the form is highly recommended as it ensures that all required information is properly submitted with the request. In recognition of the continued disruption of businesses required to file returns and remit sales, use, and withholding taxes, the Department of Treasury is waiving penalty and interest for the late payment of tax or the late filing of any monthly or quarterly return due on April 20, 2020. The waiver will be effective for a period of 30 days; therefore, any monthly or quarterly payment or return currently due on April 20, 2020 may be submitted to the Department without penalty or interest through May 20, 2020. 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. Waive all penalties and interest for 30 days.
Filing and payment of the 2019 Minnesota Individual Income Tax without any penalty and interest. This does relief not include estimated taxes for 2020 due April 15, 2020, but it does include 2019 estimated taxes and extension tax payments for the 2019 tax year. At this time, estimated tax payments for 2020 are due April 15, 2020. Taxpayers can request relief from penalty and interest for late payments for reasonable cause, including emergency declarations by the president and governor due to COVID-19. It does not include Corporation Franchise, S Corporation, Partnership, or Fiduciary taxes, though these taxpayers can receive an automatic filing extension. The Minnesota due date has not changed for Corporation Franchise, S Corporation, Partnership, or Fiduciary taxes. However, under state law: corporations receive an automatic extension to file their Minnesota return to the later of 7 months after the due date 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. The payment due date for these business returns has not changed. Taxpayers can request relief from late-filing or late-payment penalties and interest for reasonable cause, including emergency declarations by the president and governor due to COVID-19. We have temporarily stopped issuing new: levies from bank accounts, wages, or other income; professional license revocations; sales tax permit revocations; seizures of property. The department will not seek to establish nexus for any business tax solely because an employee is temporarily working from home due to the COVID-19 pandemic. The department will not seek to establish nexus for any business tax solely because an employee is temporarily working from home due to the COVID-19 pandemic. Minnesota residents; Your income tax filing requirements will not change solely because of telecommuting COVID-19 economic impact payments are not required to be paid back, and they are not included in the calculation of federal income. Minnesota income, and Income for Minnesota's property tax refund. We have temporarily stopped issuing new: Levies from bank accounts, wages, or other income. Professional license revocations, Sales tax permit revocations, Seizures of property. We may continue to take other actions collect tax debts or other debts referred to by the department. Extend payment of sales taxes - 30-day sales and use tax grace period for businesses, as identified in Executive Order 20-04, required to suspend or reduce services until March 27 – can pay sales taxes by April 20. Businesses need to file March return. Relief only for monthly filers. 30 day gambling tax payment grace period and a 60 day Minnesotacare tax filing extension for 3/16 return. Property taxes - consulting with counties about possible relief options for property taxes. First half payments are due May 15, 2020. The department does not have authority to delay payments or abate (cancel or reduce) property taxes, which are collected by counties in Minnesota.
Filing and payment relief for individual income tax and corporate income tax is extended until May 15, 2020. The first quarter 2020 estimated tax payment is also extended until May 15, 2020. Penalty and interest will not accrue on the extension period through May 15, 2020. Withholding tax payments for the month of April are extended until May 15, 2020. Withholding tax payments for the month of April are extended until May 15, 2020. The extension does not apply to sales tax, use tax, or any other tax types. The Department will consider an extension of time to file and pay on a case-by-case basis. 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. 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. We accept these appeals via electronic means now and believe that because we accept appeals through this manner there is no additional burden placed on a taxpayer to timely appeal. Additionally, there is no statutory provision to allow us to extend this deadline, which is currently 60 days for most actions of the agency. Mississippi will accept electronic document delivery, digital signatures, and electronic forms of payment. We are not aware of any requirements that a taxpayer must use certified mail in any response to this agency. Certainly, if this situation presents itself, we will accept anything received via regular mail.
Filing and payment for individuals and corporations and trusts or estates income tax returns – automatic relief. April 15 estimated tax payments for individuals and corporations relief to July 15. Penalties and interest relief if pay and file return or request extension by July 15. Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020. St. Louis Earnings Tax has been extended to July 15, 2020.
Kansas City extended the KC Earnings Tax due date to July 15, 2020.
Montana extended filing and payment for individual income taxpayers to July 15, lenient in waiving penalties and interest associated with late tax payments, estimated tax payments for the first quarter extended to July 15. The due date for the second quarter remains unchanged.
Nebraska extend tax filing and payment deadline to July 15, 2020 for state income tax payments and estimated payments that were originally due on April 15, 2020. The Tax Commissioner may grant penalty or interest relief upon request 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. DOR will not require employers to change the state which was previously established in their payroll systems for income tax withholding purposes for employees who are now telecommuting or temporarily relocated to a work location within or outside Nebraska due to the COVID-19 pandemic. A change in work location is not required beginning with the date the emergency was declared, March 13, 2020, and ending on January 1, 2021, unless the emergency is extended.
DRA will offer additional relief from applicable interest and penalties for certain qualifying Business Tax and Interest & Dividends Tax taxpayers impacted by the COVID-19 pandemic who are unable to pay an amount due on April 15, 2020, provided that payment of any remaining unpaid balance is made by June 15, 2020. This relief is available for any Business Tax or Interest & Dividends Tax return or extension payment due on April 15, 2020 as well as any Business Tax or Interest & Dividends Tax quarterly estimated tax payment due on April 15, 2020. Interest and penalties will accrue without any relief on such payments that are not satisfied as of June 16, 2020. Taxpayers that qualify for this additional relief may still take advantage of the automatic 7-month extension of the time to file their tax return under the circumstance described above, as long as their extension payment is received by June 15, 2020 in an amount equal to either their tax year 2018 total tax liability or tax year 2019 total tax liability. The automatic 7-month extension of the time to file the tax year 2019 return will be measured from the April 15, 2020 due date and will therefore be due no later than November 15, 2020. 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. 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. 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. Unemployment benefits will be made "immediately available" to individuals who have reduced hours or are unable to work due to COVID-19.
New Jersey will extend the filing and payment deadline for all New Jersey Corporate Business Tax and Individual Gross Income Tax Returns to July 15 for GIT and CBT filers. The legislation extends: 2019 gross income tax returns and payments, including trusts, 2019 corporate business tax returns and payments, first quarter 2020 GIT/CBT estimated tax payments, first quarter 1041 estimates,partnership returns and payments, and partnership filing fees and licensed professional fees. Penalties and interest will not be imposed on the balance of 2019 income tax due between the original due date and July 15. The following have NOT been extended: second quarter 2020 estimated tax payments, sales and use tax filings and remittances, payroll tax remittances, and inheritance taxes. The Division of Taxation will accept images of signatures (scanned or photographed) and digital signatures on documents related to the determination or collection of tax liability. In addition, the Division of Taxation will allow Division employees to accept documents via email and to transmit documents to taxpayers established through secured messaging systems. The Division will temporarily waive the impact of the legal threshold 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. 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. All walk-in services at Division of Taxation regional and Trenton offices will be closed to the public.
Extended filing and payment for personal and corporate income tax returns and payments due between April 15 and July 15 and withholding tax returns and payments due between March 25 and July 25 may be submitted without penalty by July 25, 2020. Waive late-filing and late-payment penalties; however interest will accrue from the original due date. Personal, fiduciary, and corporate income tax returns, return payments, and estimated payments, with a filing or payment due date of April 15th are postponed to July 15th, 2020. TRD district offices closed statewide.
New York extended filing and payment until July 15, 2020, for New York State personal income tax and corporation tax returns and fiduciaries (estates and trusts) originally due on April 15, 2020. Waives interest and penalties. Taxpayers can defer all related tax payments (including installments of estimated taxes for the 2020 tax year, due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. If you are unable to file your 2019 return by July 15, 2020, you can request an automatic extension to file your return. The personal and corporate return will be due on October 15, 2020 (and the fiduciary income tax return will be due September 30, if the extension request is filed by July 15, 2020, and you properly estimate and pay your 2019 tax liability with your extension request. No extension is provided in this notice for the payment or deposit of any other type of state tax, or for the filing of any state information return. Remittance of income tax withheld by employers required to be made using Form NYS-1, Return of Tax Withheld, must be made on time. For the period from the date (April 7, 2020) of this Executive Order through May 9, 2020, the Department of Taxation and Finance is authorized to accept digital signatures in lieu of handwritten signatures on documents related to the determination or collection of tax liability. Tax is temporarily authorized to accept digital signatures in place of handwritten signatures on documents related to the determination or collection of tax liability. Through May 9, 2020, Tax will allow taxpayers and their representative(s) holding a valid power of attorney (POA) to digitally sign documents such as: waivers of statutes of limitations on assessment or collection, waivers of statutory notices of deficiency and consents to assessment, consents to audit changes and BCMS conferee orders, statements of proposed audit changes, closing and other agreements between Tax and taxpayers, petitions for advisory petitions and BCMS conferences, other requests for taxpayer relief, and audit method elections. Tax cannot accept a digitally signed POA. When submitting a digital signature to Tax, to eliminate mailing documents to the extent possible, taxpayers, POAs, and Tax employees can use all existing and previously allowable means of receiving and transmitting documents, such as via fax or established secured messaging systems. The choice to transmit documents to Tax electronically is solely that of the taxpayer. If the taxpayer is not able to fax the executed document or to provide it through secure messaging, the taxpayer may use email with attachments to transmit the document to Tax. The document must be in one of the file types specified in section 1 above, that is, tiff, jpg, jpeg, PDF, Microsoft Office suite, or Zip. Individuals and fiduciaries should consider the estimated tax payment due on June 15, 2020, as the 1st installment payment towards the 2020 tax year. Individuals and fiduciaries should consider the estimated tax payment due on July 15, 2020, as the 2nd installment payment of the 2020 tax year. Penalties with respect to the underpayment of estimated tax for individuals and fiduciaries will be calculated based on these revised dates. Any amendments made to the IRC after March 1, 2020, will not apply to New York State or New York City personal income tax.2 Therefore, any retroactive changes made to the IRC after March 1, 2020, should not be taken into account when filing your 2019 New York State personal income tax return. For example, the federal CARES Act3 made retroactive changes to the IRC on March 27, 2020. Although these changes may impact your 2019 federal income tax return, they should not be reflected on your 2019 New York State personal income tax return. Businesses with fewer than 100 employees who have seen sales decreases of 25% or more will be eligible for zero interest loans of up to $75,000. Businesses with 1 to 4 employees will be eligible to a grant to cover 40% of payroll costs for two months to help retain employees. Learn more about the NYC Employee Retention Grant Program Here.
New York extended filing and payment until July 15, 2020, for New York State personal income tax and corporation tax returns and fiduciaries (estates and trusts) originally due on April 15, 2020. Waives interest and penalties. Taxpayers can defer all related tax payments (including installments of estimated taxes for the 2020 tax year, due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. If you are unable to file your 2019 return by July 15, 2020, you can request an automatic extension to file your return. The personal and corporate return will be due on October 15, 2020 (and the fiduciary income tax return will be due September 30, if the extension request is filed by July 15, 2020, and you properly estimate and pay your 2019 tax liability with your extension request. No extension is provided in this notice for the payment or deposit of any other type of state tax, or for the filing of any state information return. Remittance of income tax withheld by employers required to be made using Form NYS-1, Return of Tax Withheld, must be made on time. For the period from the date (April 7, 2020) of this Executive Order through May 9, 2020, the Department of Taxation and Finance is authorized to accept digital signatures in lieu of handwritten signatures on documents related to the determination or collection of tax liability. Tax is temporarily authorized to accept digital signatures in place of handwritten signatures on documents related to the determination or collection of tax liability. Through May 9, 2020, Tax will allow taxpayers and their representative(s) holding a valid power of attorney (POA) to digitally sign documents such as: waivers of statutes of limitations on assessment or collection, waivers of statutory notices of deficiency and consents to assessment, consents to audit changes and BCMS conferee orders, statements of proposed audit changes, closing and other agreements between Tax and taxpayers, petitions for advisory petitions and BCMS conferences, other requests for taxpayer relief, and audit method elections. Tax cannot accept a digitally signed POA. When submitting a digital signature to Tax, to eliminate mailing documents to the extent possible, taxpayers, POAs, and Tax employees can use all existing and previously allowable means of receiving and transmitting documents, such as via fax or established secured messaging systems. The choice to transmit documents to Tax electronically is solely that of the taxpayer. If the taxpayer is not able to fax the executed document or to provide it through secure messaging, the taxpayer may use email with attachments to transmit the document to Tax. The document must be in one of the file types specified in section 1 above, that is, tiff, jpg, jpeg, PDF, Microsoft Office suite, or Zip. Individuals and fiduciaries should consider the estimated tax payment due on June 15, 2020, as the 1st installment payment towards the 2020 tax year. Individuals and fiduciaries should consider the estimated tax payment due on July 15, 2020, as the 2nd installment payment of the 2020 tax year. Penalties with respect to the underpayment of estimated tax for individuals and fiduciaries will be calculated based on these revised dates. Any amendments made to the IRC after March 1, 2020, will not apply to New York State or New York City personal income tax.2 Therefore, any retroactive changes made to the IRC after March 1, 2020, should not be taken into account when filing your 2019 New York State personal income tax return. For example, the federal CARES Act3 made retroactive changes to the IRC on March 27, 2020. Although these changes may impact your 2019 federal income tax return, they should not be reflected on your 2019 New York State personal income tax return. Businesses with fewer than 100 employees who have seen sales decreases of 25% or more will be eligible for zero interest loans of up to $75,000. Businesses with 1 to 4 employees will be eligible to a grant to cover 40% of payroll costs for two months to help retain employees. Learn more about the NYC Employee Retention Grant Program here. 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. Interest, where applicable, at the appropriate underpayment rate, must be paid on all tax payments received after the original due date calculated fro the original due date to the due date of payment. All paper filings under this announcement should be marked "COVID-19" on the top center for 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 vog.cyn.ecnanif%40stnemetabA_ytlaneP. Please include the letter identification on your notice, or your EIN.
Filing and payment for corporate income and franchise taxes, individual income tax returns, partnership tax returns, estates and trusts tax returns, extended from April 15, waive penalties as long as file and pay tax by July 15. 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. Taxpayers that need additional time to file beyond the July 15th deadline can submit a request for an additional extension with the IRS or with the Department on or before July 15, 2020. These changes do not apply to trust taxes, such as sales and use or withholding taxes. Expansion of North Carolina Tax Penalty Relief from March 15, 2020 through July 15, 2020. The Department expands relief from the following penalties for failing to obtain a license, to file a return, or to pay taxes: • Failure to obtain a license (G.S. 105-236(a)(2)); • Failure to file a return (G.S. 105- 236(a)(3)); • Failure to pay tax (G.S. 105-236(a)(4)); and • The penalties regarding informational returns. The Department will not assess 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 relief from Late Action Penalties applies to the following tax types: • Income and Franchise Tax; • 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; • DryCleaning Solvent Tax; • Primary Forest Products Tax; • Freight Car Line Companies; and • Various Taxes Administered by the Excise Tax Division. 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.