State & Local Tax Impacts of COVID-19

Thoughtware Alert Aug 31, 2020
People sitting at table with clipboard and scales

Information current as of July 31, 2020.

The SARS-CoV-2 virus and the incidence of COVID-19 are changing life across the globe. Many taxing jurisdictions are taking mitigating actions to create social distance and aid taxpayers. The following is a running list of actions by jurisdiction, which generally result in additional time to file and/or pay. Further, many jurisdictions have closed their offices to in-person use by taxpayers and suspended their audit and administrative functions. This alert doesn’t cover similar waivers from local-level taxing authorities. These developments continue to quickly evolve; check with your BKD Trusted Advisor or visit our COVID-19 Resource Center for current information as needed.

Legislative Sessions

The following jurisdictions have suspended legislative activities as noted:

  • All legislatures are back in session, in special session, or adjourned for the year.

Federal Tax

  • The IRS has issued a 90-day extension to the April 15 deadline to file and pay taxes. The IRS also removed the dollar limitations previously imposed on the deferral.
  • The IRS has updated its comprehensive list of tax forms and payments that have been extended. Individuals, trusts, estates, corporations and other noncorporate tax filers now have extra time to file and pay their taxes for 2019 and make estimated first- and second-quarter tax payments for 2020 until July 15.

 

Alabama

  • Alabama’s Department of Revenue (DOR) extended the March and April motor vehicle registration and vehicle property tax payment deadlines to May 15.
    • Order of the Commission, April 3, 2020 (superseding March 16 order).
  • Small businesses that averaged $62,500 or less in monthly retail sales during the previous calendar year may file their monthly sales tax returns for the February, March and April 2020 reporting periods without paying the state sales tax reported as due. Late payment penalties will be waived for these taxpayers through June 1.
    • Order of the Commissioner of Revenue, March 18, 2020.
  • Late payment penalties for state lodging tax liabilities reported for February, March and April 2020 will be waived through June 1; the return filing deadlines won’t be waived.
    • Order of the Commissioner, March 20, 2020.
  • Alabama has mirrored the IRS’ return filing and payment extension for income tax and privilege tax to July 15.
    • Order of the Commissioner, March 23, 2020.
  • Alabama published additional information on tax relief, specifying 1) the income tax return filing or payment deadline is postponed to July 15 from April 15; 2) the due date for extension payments and estimated payments due before April 15 is postponed to July 15; 3) interest and penalties will be charged from July 16 if taxes aren't paid in full; and 4) returns due on March 15, except for composite returns and payments due from pass-through entities, don't qualify for the July 15 extension.
    • Alabama DOR Notice, April 2, 2020.
  • Alabama further extended the tax filing and payment deadlines for April 1 through July 14 to July 15, 2020, for individual income tax, corporate income tax, financial institution excise tax and business privilege tax. This includes relief for payments of tax on self-employment income and estimated income taxes for the 2020 tax year.
    • Order of the Commissioner, April 10, 2020.
  • Alabama won’t 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.
    • Alabama DOR Notice, May 12, 2020.A

Alaska

  • For all taxes administered by the Tax Division, except Oil and Gas Production taxes, tax returns and payments that would otherwise be due March 31, 2020, are extended until July 15, 2020. This extension also will apply to returns (including amended and information returns), reports and payments due between April 10, 2020 (or sooner if the bill is signed sooner) and July 14, 2020. Because the tax deadlines are extended, penalty or interest will be not be assessed if returns and payments are received for the affected periods on or before July 15, 2020.
  • Annual license renewal deadlines for Alcoholic Beverages, Fisheries, Mining, Motor Fuel and Tobacco tax programs are not extended; however, any associated license fees can be paid on or before July 15, 2020, without penalty or interest.
    • Gov. Dunleavy Administrative Order (pending); S.B. 241 (pending) and Alaska DOR Alert, March 31, 2020.
  • In response to COVID-19, Alaska legislation automatically extends all tax returns and payments filed with the DOR (other than the oil and gas surcharge and property tax) and due before July 15 to July 15, with full waiver of any penalty and interest.
    • S.B. 241, effective April 10, 2020.

Arizona

  • Arizona moved the deadline for filing and paying state income taxes from April 15 to July 15, 2020. The extension applies to returns and payments for individuals, corporations and fiduciaries. Taxpayers filing returns or submitting payments by the new deadline will not incur late filing or late payment penalties.
    • DOR Notice, March 20, 2020.
  • Arizona extended the due date for filing for the credit for increased excise taxes and the property tax refund claim until July 15, 2020. The due date for estimated payments will remain April 15, 2020, and the due date for specifying the taxable year to which contributions to certified school organizations, public schools and qualifying charitable organizations apply remains at April 15, 2020.
    • Arizona DOR Notice No. 20-1, April 1, 2020.
  • In regard to the COVID-19 pandemic period beginning March 1, Arizona determined there’s a reasonable basis for business owners’ and operators’ inability to timely file or pay transaction privilege taxes—which also includes county excise taxes and municipal privilege taxes along with state transaction privilege sales and use tax—and it will issue information providing the steps taxpayers should follow to request penalty abatement.
    • Arizona DOR Transaction Privilege Tax Ruling TPR 20-XX, June 1, 2020.

Arkansas

  • Arkansas is providing an automatic extension for the filing and payment date to July 15 from April 15 for 2019 individual income, subchapter S corporation, fiduciary and estate, partnership and composite returns and taxes.
    • Governor’s Executive Order No. 20-09, March 23, 2020.
  • Arkansas is waiving late fees and interest charges on annual franchise taxes until July 15. The filing deadline for annual franchise taxes is May 1, and companies filing late would generally be charged a $25 late fee plus 0.000274 percent interest for each day that the payment is delinquent.
    • Arkansas Secretary of State Announcement, March 26, 2020.
  • Arkansas announced the extension of the individual income, subchapter S corp, fiduciary and estate, partnership income and composite returns and taxes tax filing and payment deadlines to July 15 and waiving associated penalties and interest due to COVID-19. The extension is only for individual income and trust income taxes and doesn’t affect 2019 corporation income tax, 2020 estimated tax payments, sales and use tax, withholding tax, motor fuel tax, tobacco products tax and alcohol excise tax.
  • The penalty for the late registration of motor vehicles is suspended until April 16 and doesn’t impact any statute, rule or law requiring payment of sales or use tax, including any assessed penalty or interest on the tax owed, on a vehicle purchase or payment of any registration or other fee.
    • Arkansas DOR Notice, March 27, 2020.
  • Arkansas determined that an airline’s storage of aircraft in Arkansas until the resumption of normal air traffic demand won’t result in the imposition of Arkansas use tax on that aircraft. In addition, the removal of the aircraft from Arkansas for use in interstate or international air transportation of passengers or freight won’t be an "initial use" in this state that would subject the aircraft to Arkansas sales or use tax, and the performance of maintenance or repair services to the stored aircraft located won’t subject the aircraft to tax.
    • Arkansas DOR Opinion No. 20200415, April 28, 2020.
  • Arkansas determined that services used to disinfect a business, home or community space from COVID-19 are taxable cleaning services and that general cleaning services don't meet the narrow exemption for services performed to clean or sanitize food processing facilities in accordance with specific sanitization standards.
    • Arkansas DOR Opinion No. 20200327, June 11, 2020.

California

  • The Employment Development Department (EDD) announced that employers may request up to a 60-day extension of time from the EDD to file their state payroll reports and/or deposit payroll taxes without penalty or interest.
    • Emergency and Disaster Assistance for Employers, March 1, 2020.
  • The penalties and interest provisions applicable to the taxes and fees administered by the Department of Tax and Fee Administration are suspended for a period of 60 days after the date of the order for any taxpayer who’s unable to file a timely return or make a timely payment.
    • Governor’s Executive Order N-25-20, March 12, 2020.
  • The Franchise Tax Board (FTB) extended the March 15 tax filing and payment deadline to July 15.
    • FTB News Release, March 20, 2020 (supersedes the March 13, 2020, notice).
  • California is extending the Franchise Tax Board’s deadline by 60 days for annual report submissions to the Legislature for corporate income, individual income and trust income tax purposes; allowing for the suspension of the California Department of Tax and Fee Administration’s (CDTFA) requirement of a request for an extension and the filing for up to three months for individuals or businesses filing returns for less than $1 million in tax; extending by 60 days the date to claim for refund for excise, sales and use taxes administered by the CDTFA; extending by 60 days the time to file an appeal with the Office of Tax Appeals; and providing authority to the Department of Alcoholic Beverage Control director to suspend the deadlines for renewing licenses and license renewal penalty fees.
    • Governor’s Executive Order N-40-20, March 30, 2020.
  • California counties will cancel penalties and other charges for homeowners, small businesses and other property owners who are unable to pay their property taxes due to COVID-19, as determined on a case-by-case basis.
    • California State Association of Counties Notice, April 4, 2020.
  • California is exempting masks, personal protective equipment and other critical materials that protect public health from sales and use tax when sold to or purchased by the state of California for the duration of the state of emergency.
    • California Department of Tax and Fee Administration Special Notice L-745, April 13, 2020
  • California is waiving penalties for property taxes paid after April 10, 2020, for homeowners and small businesses that demonstrate they have experienced financial hardship due to the coronavirus pandemic through May 6, 2021. The deadline to file business personal property statements is extended from May 7 to May 31, 2020, with full waiver of penalties.
    • Governor’s Executive Order N-61-20, May 6, 2020.
    • California SBE Letter to Assessors No. 2020/024, May 7, 2020.
  • The CDTFA updated its website for extended due dates for quarterly, monthly and fiscal year annual filers; procedures to request an extension to file returns or prepayments for tax liabilities of $1 million or more; 60-day extensions for filing a refund claim or a tax appeal; and procedures for larger taxpayers to request relief.
    • California Department of Tax and Fee Administration, May 25, 2020.
  • California has postponed the unclaimed property reporting deadlines for life insurance companies to submit their Holder Notice Reports from April 30, 2020, to June 30, 2020, and the 2020 Holder Remit Reports and Remittances for life insurance corporations will be due between February 1 and February 15, 2021. In addition, the June 1 to June 15 period for holders to submit their reports and remittances for properties reported on 2019 Notice Reports is extended from June 1, 2020, to August 15, 2020.
    • California State Controller Newsletter/Notice, June 1, 2020.
  • The California FTB clarified that the value of sick, vacation or personal leave that employees elect to forgo in exchange for amounts paid by their employers before January 1, 2021, to organizations that aid victims of COVID-19 is excludable from an employee’s income for state income tax purposes. Electing employees may not claim a charitable deduction for the value of the donated leave.
    • California FTB FAQs for COVID-19 Tax Relief & Assistance, June 26, 2020.
  • The CDTFA clarified that a separate COVID-19 surcharge a business adds to a customer’s bill is subject to sales tax. A surcharge, whether it’s a flat fee or a percentage of the selling price, generally is subject to tax when separately added to a taxable sale, unless a specific exemption or exclusion applies.
    • CDTFA FAQs, July 6, 2020.
  • California clarified that taxpayers can combine the first and second quarterly estimated franchise tax into one payment, which is due on July 15. However, if taxpayers’ combined estimated tax payment is more than $20,000, they must make all future payments to the FTB electronically, but taxpayers may request a waiver of the electronic payment requirement by completing FTB 4107.
    • California FTB FAQs for COVID-19 Tax Relief & Assistance, July 8, 2020.
  • The CDTFA announced that small business taxpayers with less than $5 million in taxable annual sales can take advantage of a 12-month, interest-free payment plan for up to $50,000 of sales and use tax liability under small business relief payment plans. Taxpayers must fully pay all payment plans by July 31, 2021, to qualify for zero interest. The relief only applies to sales tax due on returns between March 1 and July 31. Taxpayers can request the plan through the CDTFA’s online services system, and there’s additional information regarding the plan on the department’s website FAQs.
    • California Department of Tax and Fee Administration Notice, July 1, 2020.

Colorado

  • Colorado issued a tax extension for all filers, without penalty or interest, until July. Estimated tax payments due on or after April 15 also can be filed later.
    • Gov. Jared Polis Executive Order 2020-010, March 20, 2020.
  • Colorado issued an extension for the filing deadlines from April 15 to June 15 for: 1) business personal property; 2) taxable natural resource property (mining); and 3) taxable oil and gas property.
    • Governor’s Executive Order D 2020-022, April 2, 2020.
  • Colorado emergency regulations granted filing and payment extensions to July 15 for estimated and annual income tax imposed on individuals, estates, trusts and corporations, as well as the alternative minimum tax. The extensions do not apply to payments such as those made pursuant to a deficiency notice.
    • Colorado Emergency Regs. §§39-22-608 and 39-22-609, effective April 3, 2020, for 120 days.
  • Colorado extended sales tax returns and payments originally due on April 20, 2020, to May 20, 2020. CDOR will waive penalties and interest for retailers that file their return and remit the full amount due on or before May 20, 2020.
    • Governor’s Executive Order D 2020 023, April 5, 2020.
    • Colorado DOR Notice, April 6, 2020.
  • Colorado extended the severance tax filing and payment due date from April 15 to May 15, 2020.
    • Governor’s Executive Order D 2020-033, April 9, 2020.
    • Colorado DOR Notice, April 10, 2020.
  • Colorado has further extended income tax deadlines to include all income tax payments with normal deadlines due between April 15, 2020, and July 15, 2020, until July 15, 2020.
    • Governor’s Executive Order D 2020 040, April 18, 2020.
    • Colorado Emergency Regs. §39-22-608 and §39-22-609, effective and revised April 21, 2020, for 120 days.
  • The due date for Colorado state motor vehicle taxes due on purchases has been extended to 90 days past the original due date.
    • Colorado DOR Notice, April 28, 2020.
  • Colorado has extended the calendar-year 2020 statutory deadlines for property tax filing requirements for certain taxable property in response to COVID-19 to permit the State Board of Equalization within the Department of Local Affairs to promulgate and issue necessary emergency rules to extend filing deadlines. Business personal property tax filings are due June 15, 2020. The state filing deadlines for public utilities, taxable natural resource property, airline and rail transportation companies and taxable oil and gas property are extended to May 15, 2020.
    • Governor’s Executive Order No. D 2020 055, May 1, 2020.
    • Extends Executive Order D 2020 022.
  • Colorado has further extended for one month the filing and payment due dates for state and state-administered local sales taxes.
    • Governor’s Executive Order No. D 2020 057, May 4, 2020.
    • Extends Executive Order D 2020 023.
  • Colorado has further extended Executive Order D 2020 033 and the temporary suspension of certain statutes to provide a one-month extension for filing and remitting severance tax.
    • Governor’s Executive Order No. D 2020 059, May 8, 2020.
  • Colorado has further extended income tax deadlines as follows: 1) extending Executive Order D 2020 010, as amended and extended by Executive Order 2020 040, for an additional 30 days from May 17; 2) extending state income tax filing deadlines to July 15 to align with the federal extension; 3) extending state income tax payment deadlines for all taxpayers; and 4) clarifying that Executive Order D 2020 010, as amended and extended by Executive Order D 2020 040, shall remain in full force and in effect as originally promulgated in all other respects.
    • Governor’s Executive Order No. D 2020 069, May 17, 2020.
  • Colorado has again adopted emergency regulations to formally amend the due date for certain income tax returns and payments as a result of the COVID-19 pandemic. The emergency regulations replace those previously issued in April 2020. The July 15, 2020, extended due date remains the same.
    • Colorado Emergency Regs. §§39-22-608–2 and 39-22-609–1, effective April 20 to August 18, 2020.
  • Colorado has further extended until June 29, 2020, the calendar-year 2020 statutory filing requirement deadlines for business personal property, taxable natural resource property (mining) and taxable oil and gas property. This order extends Executive Order D 2020 022 (expired May 1, 2020), which had been extended by Executive Order D 2020 055 (expired on May 31, 2020). 
    • Governor’s Executive Order D 2020 089, May 30, 2020.
  • Colorado has further extended income tax deadlines as follows: 1) extending Executive Order D 2020 010, as amended and extended by Executive Order 2020 040 and extended by Executive Order D 2020 069, for an additional 30 days from June 15; 2) extending state income tax filing deadlines to July 15 to align with the federal extension; and 3) extending state income tax payment deadlines for all taxpayers. The executive order expires on July 16 unless extended further by executive order.
    • Governor’s Executive Order No. D 2020 105, June 15, 2020.
  • Colorado further extended Executive Orders D 2020 022, D 2020 055 and D 2020 089 for an additional 30 days for statutory deadlines on taxpayer filing requirements for certain taxable property due to COVID-19. The order also amended Executive Order D 2020 022 by striking out the measure directing the State Board of Equalization to promulgate and issue emergency rules to extend the filing deadlines listed in business real property, taxable natural resource property and taxable oil and gas property statutes because the relevant filing date extensions have expired.
    • Governor’s Executive Order No. D 2020 121, June 28, 2020.
  • Colorado legislation decouples from certain provisions of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). For tax year 2020, the following additions must be made to federal taxable income for Colorado tax purposes: (1) the portion of the NOL deduction that’s attributable to Section 2303 of the CARES Act; (2) the portion of excess business loss deduction under Internal Revenue Code (IRC) §461(l) that exceeded the limitation in the Tax Cuts and Jobs Act (TCJA), as is permitted by §2304 of the CARES Act; and (3) the portion of the business interest income deduction under IRC §163(j) that exceeded the limitation in the TCJA, as is permitted by §2306 of the CARES Act. For 2021 and 2022, the bill requires pass-through business owners who claim a federal qualified business income deduction to add back the amount of the deduction for state income tax purposes, i.e., if their adjusted gross income (AGI) exceeds $500,000 for single filers or $1,000,000 for married taxpayers filing jointly, except for taxpayers who report farm income on their federal tax return. In addition, the legislation provides that for NOLs incurred after December 31, 2017, the 80 percent limitation set forth in the TCJA applies without regard to the CARES Act. Finally, starting in tax year 2021, the legislation extends the state earned income tax credit (EITC), available to taxpayers who are allowed the federal EITC and equal to 10 percent of the federal EITC, to taxpayers who would otherwise qualify for the federal EITC but who are disqualified because they, their spouse or one or their dependents don’t have a valid Social Security number. Beginning in tax year 2022, the state EITC is increased to 15 percent of the federal EITC.
    • Colorado H.B. 1024, Laws 2020, effective June 26, 2020.
    • Colorado H.B. 1420, Laws 2020, effective July 11, 2020.
    • Also see Colorado DOR CARES Act Tax Law Changes & Colorado Impact for general guidance and conformity, June 1, 2020.
  • Colorado further extended Executive Orders D 2020 022, D 2020 055, D 2020 089 and D 2020 121 for an additional 30 days from July 27 due to COVID-19 for property tax purposes. The orders extend statutory deadlines on taxpayer filing requirements for certain taxable property. The new executive order expires on August 26, unless extended further.
    • Governor's Executive Order No. D 2020 150, July 27, 2020.

Connecticut

  • The filing deadlines for various annual tax returns due on or after March 15, 2020, and before June 1, 2020, are extended by at least 30 days.
  • The 2019 Form CT-1120 and CT-1120CU Connecticut corporation business tax return filing date and payment deadline is extended to June 15, 2020.
  • The 2019 Form CT-1065/CT-1120 SI Connecticut pass-through entity tax return filing date and payment deadline is extended to April 15, 2020.
  • The 2019 Form CT-990T Connecticut unrelated business income tax return filing date and payment deadline is extended to June 15, 2020.
    • DRS Extends Filing Deadline for Certain Annual State Business Tax Returns, March 16, 2020.
  • Individual income tax return and payment deadlines are extended from April 15 to July 15, 2020. The extension also applies to estimated tax payments for the first and second quarters of 2020.
    • Connecticut DRS Notice, March 20, 2020.
  • Connecticut announced an automatic two-month extension of filing and payment deadlines for sales and use and room occupancy tax for taxpayers with $150,000 or less in annual tax liability.
    • Connecticut DRS Notice, March 30, 2020.
  • Connecticut is providing relief for property and excise taxpayers including: 1) modifying tax filing and payment requirements for licensees authorized to operate off-track betting from daily to weekly; 2) suspending the reapplication filing requirement for the Homeowners’ Elderly/Disabled Circuit Breaker Tax Relief Program and for the Homeowners’ Elderly/Disabled Freeze Tax Relief Program; 3) extending the deadline to file income and expense statements until Aug 15; 4) suspending foreclosures through nonjudicial tax sales until 30 days after the end of the COVID-19 emergency; and 5) requiring municipalities to provide temporary tax forbearance of property tax collection and reduced interest on delinquent tax payments to property owners under certain conditions.
    • Governor’s Executive Order No. 7S, April 1, 2020.
  • Connecticut has clarified its tax extensions as July 15, 2020, for annual and estimated tax returns and payments for the following types: corporation business tax due between March 15 and July 15, 2020; pass-through entity tax due between March 15 and July 15, 2020; unrelated business income tax due between March 15 and July 15, 2020; estate and trust income tax due between April 1 and July 15, 2020; and individual income tax and first- and second-quarter estimated payments for 2020.
    • Connecticut DOR Notice, April 14, 2020.
  • Connecticut has extended by an additional 90 days the 60-day filing requirement for taxpayers seeking to protest a notice of assessment or proposed disallowance of a claim for refund, as authorized by Gov. Ned Lamont’s Executive Order No. 7M. In addition, DRS is providing guidance to taxpayers regarding the effect of Lamont’s Executive Order No. 7G and various Connecticut Judicial Branch orders on the statutory deadlines for filing tax appeals.
    • Connecticut Announcement No. 2020(7), May 8, 2020.
  • Connecticut clarified that federal economic impact payments in the form of federal stimulus checks and loans forgiven under the CARES Act Paycheck Protection Program aren’t subject to Connecticut corporation business tax or individual income tax. However, coronavirus-related distributions from qualified retirement accounts, as permitted under the CARES Act, are generally subject to Connecticut income tax withholding. The clarification also states that the federal five-year net operating loss carryback provision enacted under the CARES Act doesn’t affect Connecticut income tax returns, as Connecticut separately determines NOLs. However, excess business loss limitation for noncorporate taxpayers under IRC §461(l) carries through to the Connecticut income tax returns.
    • Connecticut DOR Guidance OCG-10, July 6, 2020.
  • Connecticut clarified the effect of changes enacted by the CARES Act, which revised the depreciable life of certain QIP and made them eligible for bonus depreciation. For corporation business tax purposes, Connecticut conforms to the calculation of depreciation under the IRC, except for IRC §168(k). Therefore, Connecticut conforms to the changes made to the depreciable life of QIP by the CARES Act but doesn’t conform to the ability to claim bonus depreciation on such assets.
    • Connecticut DOR Guidance OCG-11, July 6, 2020.

Delaware

  • Delaware’s deadline for filing personal income tax returns has been postponed to July 15.
    • Delaware DOR Notice, March 23, 2020.
  • The deadline for filing corporate final, corporate tentative, estimated personal income taxes and fiduciary income taxes is extended to July 15.
    • Delaware DOR Technical Information Memorandum 2020-01, March 23, 2020.
  • Due to “rolling conformity” with federal income tax rules and tax extensions adopted by the IRS in response to the COVID-19 emergency, Delaware has announced the July 15 deadline applies to corporate income tax tentative returns due April 15, 2020, and the final personal income tax returns, estimated personal income tax payments and fiduciary income tax returns each due April 30, 2020. The state hasn’t extended the deadlines for filing returns and payments for other state taxes and fees. 
    • DOR Notice, April 9, 2020.
  • Delaware extended the application deadline for the Senior School Property Tax Credit Program from April 30, 2020, to June 1, 2020.
    • Governor’s Announcement, April 30, 2020.

District of Columbia

  • The real property tax payment due date for hotels and motels related to the first-half installment of the 2020 tax year is extended until June 30.
    • COVID-19 Response Emergency Amendment Act of 2020 and DOR Notice 2020-01, March 18, 2020.
  • The District is providing sales/use tax relief as follows: Monthly filers must file by March 20, 2020, for the period ending February 29, 2020, and returns must be filed by April 20, 2020, for the period ending March 31, 2020. Quarterly filers must file by April 20, 2020, for the period ending March 31, 2020. All sales tax due for these must be paid in full by July 20, 2020, to receive full relief abatement of interest and penalties.
    • OTR Notice 2020-02, March 20, 2020.
  • The District has extended filing and payment deadlines for 2019 individual and fiduciary income tax returns, partnership tax returns and franchise tax returns to July 15.
    • OTR Release, March 23, 2020.
  • The District announced that the deadlines for individual and business taxpayers to file their tax year 2020 estimated tax payments remain unchanged, with first quarter payments due April 15, 2020, and the second quarter payments due June 15, 2020.
    • OTR Release, March 26, 2020.
  • The District issued an emergency regulation: 1) allowing a hotel or motel to pay its real property tax installment for the first half of tax year 2020 through June 30; 2) clarifying that penalty and interest owed for prior periods are unaffected by the COVID-19 Response Emergency Amendment Act of 2020; and 3) clarifying that a hotel or motel may not benefit from sales and use tax penalty and interest relief.
    • D.C. Emergency Reg. §313.6, effective March 27, 2020, to July 21, 2020.
  • The District is automatically extending the deadline to file and pay individual income, trust income and corporate income tax returns until July 15. Taxpayers can request a further extension by July 15 to file income, partnership and franchise tax returns until October 15. The deadlines to file and make estimated tax payments remain unchanged.
    • OTR Notice 2020-03, April 9, 2020.
  • During the COVID-19 emergency, and including any further extensions, the OTR won’t seek to impose franchise tax nexus or unincorporated business franchise tax nexus solely based on employees or property used to enable employees to work from home being temporarily located in the District. Examples of property include computers, computer equipment and similar property.
    • OTR Notice 2020-05, April 10, 2020.
  • The COVID-19 Response Supplemental Emergency Amendment Act of 2020 provides that small business loans awarded and subsequently forgiven are excluded from District gross income for purposes of the income and franchise tax.
    • Act 22-286, effective April 10, 2020, and expires July 9, 2020.
  • The District has further extended real property tax deadlines, including setting May 15 for first-level assessment appeals for tax year 2021 assessments and filing the Exempt Property Annual Use Report. June 1 is the new due date for filing the Income and Expense Report.
    • OTR Announcement, April 30, 2020.
  • The District enacted the “Coronavirus Omnibus Emergency Amendment Act of 2020,” which among other provisions excludes from the computation of District gross income public health emergency small business grants issued under the COVID-19 Response Emergency Amendment Act of 2020 to small businesses, nonprofits and independent contractors or self-employed individuals ineligible for unemployment insurance.
    • Act 23-317, Laws 2020, effective 5/13/2020 and expires 8/11/2020.
  • The COVID-19 Response Supplemental Temporary Amendment Act of 2020 provides that small business loans awarded and subsequently forgiven under §1106 of the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. No. 116-136) are excluded from District gross income for purposes of the income and franchise tax.
  • The chief financial officer may waive penalties and abate interest for failure to timely pay sales and use tax for periods ending on February 29, 2020, or March 31, 2020, provided that all taxes for such periods are paid in full on or before July 20, 2020. The waiver doesn’t apply to hotels or motels that are permitted to defer property tax under another provision of the temporary legislation.
  • The chief financial officer may waive penalties and abate interest for the first installment of real property tax for the 2020 tax year (due on or before March 31), provided the property owner pays the installment by June 20, 2020. o Act 23-323, Laws 2020, effective March 11, 2020, and expires July 9, 2020; pending congressional review and publication in the D.C. Register. This legislation extends the temporary provisions in Act 23-247 and 23-286.
  • District of Columbia recently enacted an emergency legislation law repealing all COVID-19-related emergency and temporary acts in effect and consolidating income, excise, sales and use and property tax relief from them with some additional tax relief in a single legislation. The law includes measures 1) allowing an exclusion for public health emergency small business grants awarded pursuant to the Small and Certified Business Enterprise Development and Assistance Act and public health emergency grants authorized pursuant to the Advisory Neighborhood Commissions Act from the computation of gross income for individual income, corporate income and trust income tax purposes; and 2) allowing corporations, unincorporated businesses or financial institutions an 80 percent deduction for apportioned state net operating loss carryover to be deducted from their net income after apportionment for years beginning after December 31, 2017.
    • Act B23-0757, Laws 202, effective May 27, 2020, and expires on August 25, 2020.
  • District of Columbia legislation provides the same relief as the Coronavirus Support Emergency Amendment Act, which expired on June 8. The law also excludes public health emergency grants from the computation of gross income and allows corporations, unincorporated businesses or financial institutions an 80 percent deduction for apportioned state net operating loss carryover to be deducted from their net income after apportionment for years beginning after December 31, 2017.
  • The emergency legislation repeals the following previously enacted COVID-19 legislation: (1) the COVID-19 Response Emergency Amendment Act of 2020 (Act 23-247); (2) the COVID-19 Response Supplemental Emergency Amendment Act of 2020 (Act 23-286); (3) the COVID-19 Supplemental Corrections Emergency Amendment Act of 2020 (Act 23-299); (4) the Coronavirus Omnibus Emergency Amendment Act of 2020 (Act 23-317); and (5) the COVID-19 Response Supplemental Temporary Amendment Act of 2020 (Act 23-323).
    • Act 23-328 (B23-759), Laws 2020, effective June 8, 2020, and shall remain in effect until no longer than September 6, 2020.
  • The District has provided additional clarification on sales and use tax in response to the COVID-19 pandemic. The guidance addresses legislation passed by the Council and confirms the extension of due dates for sales tax payments to July 20, 2020, for periods ending on February 29, 2020, and March 31, 2020, only. The guidance also specifies that penalties and interest for nonpayment of the tax will accrue from the original due date of March 20, 2020, and April 20, 2020, not the deferred due date of July 20, 2020. Lastly, the guidance explains the criteria for qualifying a taxpayer for tax relief under various scenarios of nonpayment.
    • OTR FAQs, July 24, 2020.

Florida

  • Florida’s DOR will offer flexibility on the deadlines of taxes due, including corporate income taxes and sales taxes, to help businesses adversely affected by the new coronavirus response efforts, with some corporate income tax payments that can be deferred until the end of the fiscal year.
    • Official guidance pending; Gov. Ron DeSantis announcement, March 16, 2020.
  • Florida is extending the due date for taxpayers to pay property taxes in all Florida counties from March 31 to April 15, 2020. Property tax returns filed by a railroad, railroad terminal, private car and freight line and equipment company property are extended from April 1 to April 15, 2020.
    • DOR Order of Emergency Waiver/Deviation No. 20-52-DOR-001, March 26, 2020.
  • Florida will waive the imposition of penalty and accrual of interest for those taxpayers who collected any of the following taxes in February 2020 but were unable to meet the March 20 due date if reported and remitted by March 31: sales/use tax, tourist development tax, new tire fee, rental car surcharge, prepaid wireless E-911 fee, lead acid battery fee and the dry cleaning gross receipts fee.
  • Similarly, for taxpayers “adversely affected” by the COVID-19 outbreak, the DOR will extend the due date to April 30, 2020, for these taxes collected in March normally due on April 20.
    • DOR Order of Emergency Waiver/Deviation No. 20-52-DOR-002, March 26, 2020.
  • Florida has suspended the collection of documentary stamp tax on loans made to small businesses under the CARES Act. This directive is effective from April 3, 2020, until the expiration of Executive Order 20-52.
    • Governor’s Executive Order Number 20-95, April 6, 2020.
  • Florida has further extended corporate income tax (CIT) filing and payment deadlines. For entities with a tax year ending December 31, 2019, the May 1 due date for Florida CIT returns is extended to August 3, 2020, and the May 1 due date for Florida CIT payments and extensions is extended to June 1, 2020. For entities with a tax year ending January 31, 2020, the June 1 due date for Florida CIT returns is extended to August 3, 2020, and the June 1 due date for Florida CIT payments or to submit a request for extension of time to file remains June 1, 2020. For entities with a fiscal year ending February 29, 2020, the July 1 due date for Florida CIT returns is extended to August 3, 2020, and the July 1 due date for Florida CIT payments or to submit a request for extension of time to file remains July 1, 2020. Although the IRS extended the due dates for all federal CIT payments, this emergency order doesn’t change the current due dates for Florida CIT estimated payments due between April 1, 2020, and July 15, 2020. Similarly, for taxpayers “adversely affected” by the COVID-19 outbreak, the DOR will extend the due date to April 30, 2020, for these taxes collected in March normally due on April 20.
    • DOR Order of Emergency Waiver/Deviation No. 20-52-DOR-003, April 27, 2020.

Georgia

  • Georgia is extending the 2019 corporate income, individual income and trust income tax filing and payment deadline to July 15 from April 15 without penalties and interest. The extension also applies to state estimated income tax payments due on April 15 but doesn’t apply to the filing, payment or deposit of other state taxes, including employee withholding and sales tax. Vehicle registrations that expire between March 16 and May 14 also are extended through May 15.
    • Georgia DOR Notice, March 25, 2020.
  • Georgia reiterated that estimated income tax payments due on April 15 and June 15 were extended to July 15, 2020. This also applies to any income tax return, payment or estimate due after April 15, 2020, and before July 15. Additionally, the statute of limitations to file a refund claim for a previous tax year has been extended to July 15, 2020, for refund claims that would have expired before July 15, 2020.
    • Georgia DOR Notice, April 16, 2020.
  • Georgia has clarified that it won’t use employees’ relocation, a direct result of temporary remote work requirements, as the basis for establishing Georgia nexus for corporate income and individual income tax purposes. If an employee remains in the state after the temporary remote work requirements end, normal rules for determining nexus, employee wages and the employer income tax withholding obligations will apply.
    • Georgia DOR FAQs, May 1, 2020.
  • Georgia will conform to most tax features of the federal coronavirus relief law but decouples from the net operating loss carryback provisions and the new benefits for excess business losses by noncorporate taxpayers.
    • Georgia H.B. 846, Laws 2020, effective March 27, 2020.

Hawaii

  • Individual and corporate income tax returns and payments due between April 20 and June 20 are now due July 20. Taxpayers who are entitled to a refund or pay the tax due by July 20 will receive an automatic extension to file the associated return by Oct. 20. The relief does not apply to estimated income tax payments for the 2020 taxable year.
    • DOR Notice, March 23, 2020.
  • Hawaii provided clarification on various COVID-19 tax relief. The economic impact payments and loan proceeds from the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Emergency (EIDL) programs aren’t subject to state income tax. Payments under the Pandemic Unemployment Assistance (PUA) and Federal Pandemic Unemployment Compensation programs are subject to state income tax. General excise tax won’t be imposed on payments received under PUA, loan amounts forgiven under PPP and EIDL grants.
    • Hawaii DOR Tax Information Release No. 2020-02, April 29, 2020.

Idaho

  • Idaho is extending the deadline to file or pay income tax and ask for property tax relief for 60 days, until June 15. The extension applies to all taxpayers regardless of the amount owed and will abate all interest and penalties.
    • Gov. Brad Little proclamation, March 23, 2020.
  • Idaho has extended first-quarter International Fuel Tax Agreement (IFTA) return and payment deadline to June 1, 2020, from April 30, 2020. Interstate truckers with an IFTA license can now file their returns and report and pay by the extended due date without paying interest or penalty to any jurisdiction.
    • Idaho State Tax Commission Notice, April 9, 2020.

Illinois

  • Illinois extended the dates for filing Form 700 and paying the state estate tax to July 15. However, the 30-day extension remains in effect for estates with state returns and payments due between March 16 and March 31.
    • Illinois Attorney General Important Notice, April 1, 2020.
    • Illinois Attorney General Important Notice, March 16, 2020 (prior announcement).
  • The DOR provided sales tax payment relief for eating and drinking establishments that incurred a total sales tax liability less than $75,000 in 2019, as taxpayers won’t be charged penalties or interest on liabilities reported for the February, March and April reporting periods for timely filed returns. Delayed payments are due in 25 percent increments, on May 20, June 22, July 20 and August 20.
    • Illinois DOR Information Bulletin FY 2020-23, March 19, 2020.
  • Illinois will extend the filing deadline for state individual income, corporate income and trust income tax from April 15 to July 15 to conform with the new federal deadline. This does not impact the first and second installments of estimated payments for 2020 taxes that are due April 15 and June 15.
    • Gov. J.B. Pritzker announcement and DOR FY 2020-24, March 25, 2020.
  • Illinois is providing a 90-day expiration date extension for certain Illinois sales tax exemption numbers (E-numbers) due to the COVID-19 pandemic.
    • Illinois DOR Information Bulletin FY 2020-25, March 31, 2020.
  • Illinois guidance on estimated payment requirements due to COVID-19: 1) corporate income and individual income taxpayers can base their 2020 estimated tax payments on either 100 percent of their estimated liability for this year or 100 percent of their actual liability for 2019 or 2018; 2) if taxpayers timely pay the lesser of 90 percent of their liability for 2020 or 100 percent of their liability for 2019 or 2018 in four equal installments, they can avoid estimated late payment penalties.
    • Illinois DOR Information Bulletin FY 2020-26, April 1, 2020.
  • Illinois is waiving penalty and interest through May 26, 2020 on late-filed, first quarter International Fuel Tax Agreement (IFTA) returns due April 30, 2020. In addition to Illinois, interest due under IFTA is also being waived in 48 of 58 U.S. and Canadian jurisdictions. In addition to Illinois, interest due under IFTA is also being waived in 48 of 58 U.S. and Canadian jurisdictions. However, interest remains due on late-filed returns beginning May 1, 2020, in the following jurisdictions: Alabama, Georgia, Louisiana, Michigan, Minnesota, New Jersey, New York, North Carolina, Nova Scotia, and Rhode Island.
    • Illinois DOR Notice, April 21, 2020.
  • Illinois is extending again the expiration date for sales tax exemption (“E”) numbers that expire during calendar-year 2020 automatically until December 31, 2020.
    • Illinois DOR Information Bulletin FY 2020-33, May 4, 2020.
    • This bulletin supersedes Information Bulletin FY 2020-25.
  • Illinois legislation permits county assessors to waive interest and penalties on late property tax payments due during 2020. The law applies to all counties except for Chicago’s home, Cook County, which provided similar relief last month. The measure also permits counties to approve 2020 homestead exemptions for property owners with disabilities, veterans and senior citizens so long as an exemption was granted last year.
    • Illinois S.B. 685, Laws 2020, effective June 5, 2020.

Indiana

  • The DOR is extending filing and payment deadlines to align with the IRS. Corporate and individual tax returns and payments, along with estimated payments originally due by April 15, are now due on or before July 15. Corporate income tax returns and payments originally due on May 15 are now due August 17. All other tax return filings and payment due dates remain unchanged.
    • Governor Eric Holcomb announcement, March 19, 2020.
  • Indiana has suspended the deadline for property tax exemption applications due to COVID-19 until June 30 from April 1.
    • Governor’s Executive Order 20-12, March 26, 2020.
  • The Department of Insurance (DOI) will modify its own internal policies by implementing a 60-day grace period relating to renewals and cancellations for all licensees, certificate holders and registrants. This includes premium tax and surplus lines premium tax filings and the DOI will waive any penalty related to late payment during this period.
    • Indiana DOI Bulletin 252, March 26, 2020.
  • Indiana has officially announced its tax relief package, including: 1) requiring the DOR to provide a time extension related to all income tax liabilities; 2) reminding taxpayers that property taxes remain due on May 1, but counties are to waive penalties on payments made after the due date; 3) providing a use tax exemption on donations of medical supplies or other goods by manufacturers in furtherance of the COVID-19 pandemic, subject to the approval of the DOR; 4) clarifying that the DOR may waive any penalties and interest that are directly related to taxes; and 5) requiring the Bureau of Motor Vehicles' commissioner to extend the deadline for vehicle registration renewals by suspending administrative penalty fees.
    • Governor's Executive Order 20-05, March 19, 2020.
  • Indiana will exempt manufacturers making donations of medicine, medical supplies or other eligible items to fight the COVID-19 pandemic in Indiana from use tax.
    • Indiana DOR Notice, April 6, 2020.
  • Indiana issued clarifications related to the COVID-19 tax changes. The first estimated payment, normally due in April, will now be due after the second estimated payment, which still remains due in June. The DOR will not use an employee'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.
    • Indiana DOR Notice, April 6, 2020.
  • Indiana-based IFTA licensees who file quarterly motor carrier fuel tax returns may delay the first quarter’s return, ordinarily due April 30, 2020, to May 31, 2020.
    • Indiana DOR Notice, March 31, 2020.
  • Indiana will not use an employee’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 income tax nexus or for exceeding the protections provided by P.L. 86-272 for the employer of the temporary relocated employee.
    • Indiana DOR COVID-19 FAQs, April 10, 2020.
  • Indiana has waived certain property tax assessments and fees. Beginning May 12, and for 60 days, counties must waive penalties on special assessments and fees that are included on property tax bills and collected as part of the property tax payment. This includes applying the waiver to conservancy district assessments for exceptional benefits, ditch and drain assessments, solid waste management fees, and stormwater assessment fees, as well as, any fee or special assessment imposed by the local government and paid along with the May 11 installment of property taxes.
    • Governor’s Executive Order 20-21, April 15, 2020.
  • Indiana has extended the May 15 deadline for submitting business personal property returns, compliance statements and property tax incentive applications to June 15. Applicants for a new, transfer or renewal alcoholic beverage permit may submit the property tax clearance Form 1 without the embossed seal for the duration of the emergency.
    • Governor’s Executive Order 20-23, April 23, 2020.
  • Indiana provided additional extensions for the filing and payment of certain individual and corporate tax returns to provide further relief during the COVID-19 health crisis. These extensions are in addition to those previously announced on March 19, 2020. July 15, 2020, is the new extended due date for individual estimated payments originally due on June 15, 2020, the deadline for filing a claim for refund of income tax set to expire between April 1 and July 14, 2020, and corporate estimated payments due on April 20, May 20 or June 22, 2020. Corporate tax returns (IT-20, IT-41, IT-65, IT-20S, FIT-20, IT-6WTH and URT-1) originally due on May 15, June 15 or July 15, 2020, are now due on August 17, 2020.
    • Governor’s Executive Order 20-27, May 8, 2020.
    • Indiana DOR Notice, May 11, 2020.

Iowa

  • Iowa is extending filing and payment deadlines for income, franchise and moneys and credits taxes with a due date on or after March 19 and before July 31 to July 31. This includes corporate income tax, individual income tax, composite returns, fiduciary returns, franchise tax, partnership returns, S corporation returns and credit union reports. The order excludes estimated payments.
  • Iowa also extended the income tax withholding deposit due date for the period ending March 15 from March 25 to the new deposit due date April 10.
    • Order 2020-01, March 19, 2020.
  • Iowa has temporarily suspended collections of property taxes as well as penalties and interest.
    • Gov. Kim Reynolds Supplemental State Public Health Emergency Declaration, March 20, 2020.
  • Iowa continues the suspension of the imposition of property tax late payment penalties and interest. In addition, the 10 percent late filing penalty is waived if beer and wine sales reports are not filed/paid timely.
    • Governor’s Proclamation, April 2, 2020.
  • Iowa is providing a reduced schedule of amounts due for the first and second installments of corporate and individual income tax estimated payments for tax year 2020 due between April 30 and July 15. Estimates will meet the underpayment penalty safe harbor if they are 25 percent of the current year liability or 2018 tax year liability for the first installment and 50 percent of the current year liability or 2018 tax year liability for the second installment. Note that for individuals with a 2018 federal AGI greater than $150,000 (or $75,000 for married filing separately) the revised safe harbor percentages are 27.5 percent and 55 percent respectively. The difference between what normally should have been paid and the reduced amount for these estimates is required to be added to the third installment for tax year 2020.
    • Iowa DOR Order 2020-03, April 9, 2020.
  • Iowa is accepting applications for tax deferral through April 30 for sales and withholding tax filings due during the period beginning March 20 through the closure of business on April 30. The deferral would be an additional 60 days from the original due date to file a return and remit tax payment, with all penalties and interest waived.
    • Iowa DOR Notice, April 8, 2020
  • Iowa has extended its public health emergency declaration for excise and property tax purposes, extending to May 27 from April 15 the date for a county or a city to file a resolution to begin the annual levy for collection commencing July 1 and suspending alcohol license expiration through May 27.
    • Governor’s Proclamation, May 6, 2020.
  • Iowa is extending its Small Business Relief Program, which is now available for tax periods beginning May 1, 2020, through June 30, 2020. Sales tax and withholding tax returns must be timely filed on or before the due date. If tax returns aren’t timely filed, the taxpayer will be disqualified from the program and late payment and filing penalties will apply. Each payment included in the new program is deferred for 30 days. Payments deferred between and including March 20, 2020, and April 30, 2020, are still deferred for 60 days as indicated in the notice previously received. Businesses that have already submitted an application and been accepted for the program won’t need to reapply.
    • Iowa DOR e-News, May 6, 2020.
  • Iowa has provided guidance that a taxpayer’s PPP loan that’s forgiven and properly excluded from federal gross income under §1106 of the federal CARES Act in a tax year beginning on or after January 1, 2020, also will qualify for exclusion from income for Iowa tax purposes. However, Iowa hasn’t conformed with §1106 of the CARES Act for tax years beginning prior to January 1, 2020. If a taxpayer receives PPP loan forgiveness for a tax year beginning prior to January 1, 2020, that discharge of indebtedness may be considered income for Iowa tax purposes, unless the income qualifies for exclusion under another applicable provision of federal or Iowa law.
  • Due to the COVID-19 pandemic, Iowa won’t 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 state consider such presence by nonsales employees due to the pandemic sufficient, by itself, to cause a corporation to lose the protections of Public Law 86-272.
    • Iowa DOR FAQs, updated May 15, 2020.
  • Iowa legislation creates an income tax exemption for the forgiven loan proceeds a business receives through the PPP; the income taxpayers receive through the federal CARES Act in the form of stimulus tax refund payments; and income taxpayers receive through the federal CARES Act in the form of emergency student grants (as applies to any tax year ending after March 27, 2020).
    • Iowa H.F. 2641, Laws 2020, effective July 1, 2020.
  • Iowa guidance reflects the state generally conforms with the CARES Act to the extent it affects Iowa income taxes for tax years beginning on or after January 1, 2020, but not for prior tax years. For individual income taxpayers, the guidance notes that economic impact payments, rebates or refundable tax credits shouldn’t be included when calculating Iowa income for 2020. For corporate income taxpayers, a PPP loan that’s forgiven and properly excluded from federal gross income in a tax year after 2018 also will qualify for exclusion from income for Iowa tax purposes. Iowa conforms with the CARES Act suspension of the excess business loss limitation (IRC §461(l)) for tax year 2020, but not for tax years 2018 and 2019. Iowa doesn’t conform with the changes to the limitation on business interest (IRC §163(j)) to the extent they apply retroactively to a tax year beginning during 2019. Iowa doesn’t conform with the treatment of the depreciable life of qualified improvement property placed in service in 2018 and 2019 under the CARES Act but instead treats this property as 39-year property.
    • Iowa DOR Nonconformity: CARES Act of 2020, July 14, 2020.
  • Iowa announced further extension of various tax provisions due to the COVID-19 outbreak, including 1) suspension of penalty and interest for delay in payment until July 31; 2) requirements for county treasurers to hold tax sales for tax-delinquent properties until July 31; 3) the collection of delinquent taxes by an alternative remedy, including by personal judgment; 4) the requirement for class A beer and wine permit holders to report sales and pay taxes due on or before the 10th day of each calendar month, including the 10 percent penalty; and 5) the expiration of rights of redemption after tax sales.
    • Governor's Proclamation of Disaster Emergency, effective July 24, 2020, through August 24, 2020.
  • Iowa released guidance regarding the property tax payment deadline extension due to COVID-19, which includes information on the waiver of penalty and interest that would have accrued on property tax not paid by April 1, and clarified the revised deadline extension will expire on July 31.
    • Iowa DOR FAQs, July 24, 2020.

Kansas

  • While motor carriers and persons operating commercial vehicles must still obtain the requisite overdimension/overweight permits as required by the Department of Transportation before operating, the registration and fuel tax permit fees are temporarily waived.
    • Governor's Executive Order 20-09, March 20, 2020.
  • Kansas has extended homestead or property tax relief refund claim due dates to October 15 from April 15 for 2019 homestead or property tax relief refund claims.
  • Kansas has extended individual income, corporate income, fiduciary and privilege taxes to July 15 from April 15 for filing and payment for calendar and fiscal-year filers and no penalty and interest will be imposed until either extended due date.
    • Kansas Governor’s Executive Order 20-13 and DOR Notice 20-01, March 23, 2020.
  • Kansas has issued a waiver of penalty and interest for the first quarter 2020 estimated tax payments for individual income, corporate income, privilege and excise tax purposes. The waiver is effective for payments made after April 15 and on or before July 15, when the waiver will expire.
    • Kansas DOR Notice 20-02, April 2, 2020.
  • The Kansas Governor April 9 issued an executive order extending renewal deadlines and waiving fees for any license, certificate, permit, or registration issued to any individual, business, or organization for excise tax purposes. The measures include: 1) extending the deadline for 90 days regarding any occupational or professional license, certificate, permit, or registration issued to any taxpayer, that was in good standing as of March 12; 2) waiving any late, delinquent, penalty, or expiration fees associated with any license, certificate, permit, or registration; and 3) clarifying what is "good standing." The extension and waiver apply to licenses, certificates, permits, or registrations that have expired or will expire during the State of Emergency. The order took effect on April 9 and will be in force until rescinded or until the emergency relating to COVID-19 expires, whichever is earlier.
    • Governor's Office, Exec. Ord. 20-19, 04/09/20
  • Kansas has generally extended to May 31 the temporary deadlines set in prior Executive Orders, other than the May 15 deadline for rules pertaining to commercial vehicles actively participating in the COVID-19 relief or restoration efforts.
    • Governor’s Executive Order 20-28, April 30, 2020.
  • Kansas has extended to July 15 the deadline for filing and paying the 2019 calendar-year and fiscal-year tax returns for individual income, corporate income, trust income and privilege excise taxes; extended to October 15 the filing deadline for homestead and property tax relief refund claims; and clarified that estimated tax payments remain due April 15.
    • Governor’s Executive Order 20-37, May 26, 2020 (expires June 30).
  • Kansas legislation subjects counties to the limitations and prohibitions upon the imposition or levy of retailers' sales taxes. Further, it restricts counties to levy ad valorem taxes upon real property located within any redevelopment project area established under statutory requirements and temporarily disallows counties to levy and collect taxes on income from whatever source derived.
    • Kansas H.B. 2016 (Laws 202), effective June 8, 2020.
  • Kansas has further extended the effective date of prior emergency orders until the earlier of September 15, until rescinded, or until the statewide COVID-19 emergency extended by H.B. 2016 expires. The extension includes Executive Order 20-37 pertaining to income and property tax deadlines.
    • Governor’s Executive Order 20-49, June 30, 2020.

Kentucky

  • Kentucky is providing income tax return filing and payment extension from April 20 to July 15, 2020, for corporations, S corporations, partnerships, limited liability companies (LLC), fiduciaries and individuals. Kentucky will waive late filing and payment penalties for taxpayers who file returns and pay taxes by the July 15 deadline.
    • DOR Notice March 22, 2020.
  • Legislative COVID-19 relief includes permission for the DOR to provide tax deadline relief to match that of the IRS without imposition of penalty or interest, as well as expanding the state’s unemployment benefits to independent contractors and providing immunity to some healthcare workers in an effort to bolster the state’s response to COVID-19’s impact.
    • S.B. 150, effective March 30, 2020.
  • Kentucky announced that for taxpayers who submit an automatic return filing extension for individual income, corporate income and trust income taxes, the extended return filing due date will be October 15, or November 15 for C corporations.
    • Kentucky DOR Notice, April 3, 2020.
  • Kentucky’s business personal property tax return filing deadline has been extended to July 15.
    • Kentucky DOR website, April 7, 2020.
  • Kentucky has further revised return filing and payment due dates to conform with federal guidance. Income tax return filings and payments currently due on April 15, May 15 and June 15 for individual, corporate, limited liability, fiduciary and pass-through filers, will now be due July 15, 2020, including first and second quarter estimated tax payments. Taxpayers can get an automatic six-month filing extension if they submit a request by July 15, 2020. In addition, DOR has suspended all enforced collection action.
    • Kentucky DOR Notice, April 15, 2020.
  • Kentucky specified the state doesn’t generally conform to the CARES Act. However, Kentucky does follow the federal exclusion for PPP loan forgiveness and the IRS Notice 2020-32 nondeductibility of business expenses incurred in the taxpayer’s business related to the PPP, as they are now allocable to tax-exempt income. In addition, the state clarified that employers employing Kentucky residents or nonresidents who reside in states with which Kentucky has a reciprocal agreement won’t need to change their withholding practices during the period when employees are working from home.
    • Kentucky DOR COVID-19 Tax Relief: FAQs, July 16, 2020.

Louisiana

  • The DOR is automatically extending the due date for the February 2020 sales tax return and payment from March 20 to May 20.
    • Louisiana DOR Information Bulletin 20-008, March 19, 2020.
  • The tax deadlines and legal proceedings are suspended until April 13, affecting corporate income, individual income and sales and use, property, excise and trust income taxes.
    • Governor’s Proclamation No. JBE 2020-30, March 16, 2020.
  • The due date for income tax returns and any payments due with the returns is extended to July 15.
    • Louisiana DOR Information Bulletin 20-009, March 23, 2020.
  • The filing date for personal property renditions was suspended until at least April 13 from April 1 previously.
    • Louisiana Tax Commission Advisory 02-2020, March 25, 2020.
  • Louisiana extended state tax filing and payment deadlines, including: 1) automobile rental, beer and wine excise tax due dates extended to May 20 from March 20; 2) corporate income, franchise, fiduciary, individual and partnership tax due dates extended to July 15 from May 15; and 3) sales tax due dates extended to May 20 from March 20.
    • Louisiana DOR Notice, March 27, 2020.
  • Louisiana will waive any penalty for underpayment of estimated individual income tax otherwise due for the April 15 and June 15, 2020, declaration payments provided the taxpayer pays the April 15 and June 15, 2020, declaration payments timely and the amount paid on the declarations is at least 90 percent of the respective prior-year amounts.
  • Louisiana also extends the deadline for a credit transfer or for the execution of a binding agreement to transfer such credit by 30 days for income and franchise tax returns with an original due date between March 1 and May 30, 2020.
    • Louisiana Revenue Ruling No. 20-002, March 30, 2020.
  • Louisiana further extended the suspension of legal and administrative deadlines to April 30.
    • Governor’s Proclamation No. 41 JBE 2020, April 2, 2020.
  • Louisiana initially extended, but then rescinded, the April 15 deadline to file and pay quarterly premium tax statements and the June 1 deadline to file and pay surplus lines tax reports. These original filing dates remain effective.
    • Louisiana DOI Emergency Rule 42, rescinded prior to effective dates.
  • Louisiana has extended the April 15 deadline to file and pay quarterly premium tax statements and the June 1 deadline to file and pay Surplus Lines Tax Reports to July 15, 2020.
    • Louisiana DOI Emergency Rule 42, effective April 20, 2020.
  • Louisiana has extended the monthly severance tax returns, payments and reports due April 25 to June 25, with full relief of penalty and interest. This is an automatic extension, and no extension request is necessary.
    • Louisiana DOR Revenue Information Bulletin No. 20-011, April 22, 2020.
  • Louisiana further extended the suspension of legal and administrative deadlines to May 15.
    • Governor’s Proclamation No. 52 JBE 2020, April 30, 2020.
  • Louisiana further extended the suspension of legal deadlines, including liberative prescription and preemptive periods applicable to legal proceedings in all courts, administrative agencies and boards, until June 5, 2020, including any such deadlines set forth by law within Title 47 of the Louisiana Revised Statutes.
    • Governor’s Proclamation No. 59 JBE 2020, May 14, 2020.
  • Louisiana has extended sales tax returns/payments for March and April 2020 that were due April 20 and May 20, respectively, to June 30, 2020. Sales tax returns/payments for February 2020 were previously extended from March 20 to May 20, 2020. However, if a collection notice is received by a taxpayer for this period, it may be disregarded, as the notices have been voided in the Department of Revenue’s system.
    • Louisiana DOR Information Bulletin No. 20-012, May 22, 2020.
  • Louisiana has suspended the corporate franchise taxes for small businesses from July 1, 2020, through June 30, 2021. It applies to businesses subject to the tax that have up to $500,000 of taxable capital. A first-time initial tax of $110 also is suspended.
    • Louisiana H.C.R. 66, Laws 2020, effective June 1, 2020.
  • Louisiana passed legislation providing that if a disaster or emergency is declared by the Louisiana governor or the U.S. president, the Louisiana Department of Revenue may extend tax return filing and payment deadlines by no more than six months for income and franchise taxes and three months for any other tax. Interest may accrue during the extension in the case of a governor-declared disaster, but not during a presidentially declared disaster.
    • Louisiana Act 47 (S.B. 498), Laws 2020, effective June 4, 2020.
  • Louisiana has further extended emergency provisions during the COVID-19 pandemic, including penalties and interest due on sales and use taxes collected by the Office of Motor Vehicles, which began on or after March 9 to until July 1, and legal and administrative tax deadlines to June 15.
    • Governor’s Proclamation No. 75 JBE 2020, June 4, 2020.
  • Louisiana has further extended emergency sales and use tax provisions during the COVID-19 pandemic, extending general emergency provisions to July 24 and suspending penalties and interest, which began on or after March 9, due on state and local sales and use taxes collected by the Office of Motor Vehicles until June 30.
    • Governor’s Proclamation No. 84 JBE 2020, June 25, 2020.
  • Louisiana legislation authorizes the DOR to waive penalties and interest for the late filing of tax returns or late tax payments due for 2019 and 2020, with an original due date between March 11 and July 15, and clarifies the waiver doesn’t apply to tax returns or payments submitted after November 15. Taxpayers claiming the waiver are required to retain documentation confirming the request to the DOR evidencing the COVID-19 effect on their health or their tax preparers’ health.
    • Louisiana H.B. 37, Laws 2020, effective July 13, 2020.
  • Louisiana extended its July 15 state income tax filing deadline by two days because of the DOR’s computer network problems. The extension to July 17 applies to partnership, individual, fiduciary and corporation and franchise income tax return and payment deadlines that were originally due in April or May but were extended to July 15 because of the pandemic, as well as alcoholic beverage, motor fuels and withholding taxes that were due July 15.
    • Louisiana DOR News, July 15, 2020.
  • Louisiana legislation authorizes certain COVID-19-affected businesses to participate in the Quality Jobs Program from July 1, 2020, to December 31, 2021, which provides a payroll subsidy to qualifying firms, as well as a choice of a sales tax rebate on qualifying expenditures or a refundable credit for qualifying capital expenditures. COVID-19-affected industries are defined as entities that have no more than 50 employees nationwide, including affiliates, and that operate in retail trade; restaurants and bars; and accommodations in Louisiana that had to decrease/cease operations due to the pandemic. Eligibility to earn benefits terminates after June 30, 2023.
    • Louisiana H.B. 19 (Act 29) and S.B. 26 (Act 23), Laws 2020, First Extraordinary Session, effective July 1, 2020.

Maine

  • Maine extended the individual income, corporate income and trust income tax filing and payment deadline to July 15 from April 15. This includes any final and estimated Maine income tax payments due by April 15, 2020. Sales tax and payroll payments will continue as normal.
    • Governor’s Office announcement, March 26, 2020.
    • Maine DOR Tax Alert No. 4, March 27, 2020.
  • Maine extended the April 1 statutory application deadline for certain property tax exemptions to the earlier of the commitment date of the municipality, or 30 days after the termination of the emergency. The extension applies to the exemptions for: 1) institutions and organizations; 2) estates of veterans; 3) solar and wind energy equipment; 4) homesteads; and 5) business equipment.
    • Governor’s Executive Order No. 31 FY 19/20, March 31, 2020
  • Maine has expanded its COVID-19 tax extension. The extension to July 15, 2020, now also includes second-quarter estimated payments and any estimated or final payments originally due April 16 through June 15 for fiscal-year filers.
    • Maine Tax Alert Vol. 30, No. 11, April 29, 2020.
  • Maine has clarified that the special personal income tax exemption for a nonresident’s income earned during a disaster period applies during the COVID-19 disaster period. Currently, the disaster period runs for 60 days beginning with the date of the governor’s proclamation of a state of emergency on March 15, 2020. Specifically, the taxpayer must be a nonresident whose presence in Maine during the tax year is for the sole purpose of performing services or conducting business during a disaster period and whose compensation or income is directly related to a declared state disaster or emergency at the request of either the state, subdivision or a registered business.
    • Maine DOR FAQs, May 7, 2020.
  • Maine clarified that because it conforms to the Internal Revenue Code as amended through December 31, 2019, taxpayers filing their 2019 Maine income tax returns by July 15 should do so without regard to federal tax provisions enacted after December 31, 2019. Prior to July 15, Maine Revenue Services will provide guidance and instructions on how to file 2019 Maine income tax returns in light of these recent federal changes. In addition, Maine Gov. Janet T. Mills is considering possible legislation that would conform to certain new federal tax provisions.
    • Maine DOR Tax Alert Vol. 30, No. 14, June 16, 2020.

Maryland

  • Individual, corporate, pass-through and fiduciary taxpayers are permitted an automatic income tax filing and payment extension with full waiver of any penalty and interest until July 15.
  • Business tax filing deadlines are extended to June 1, 2020, for returns with due dates during the months of March, April and May for businesses filing the following returns: sales and use tax; withholding tax; admissions and amusement tax; alcohol tax; tobacco tax; motor fuel excise tax; tire recycling fee; and the bay restoration fee.
  • Unclaimed property reports and payments for insurance companies are extended from April 30 to July 31.
    • Comptroller of Maryland Tax Alert 03-20, March 23, 2020.
  • Maryland has suspended the effect of the following statutes: Md. Code Ann. Tax-Prop. § 11-101 (annual personal property report); Md. Code Ann. Tax-Gen. § 10-901 (income tax payments); and Md. Code Ann. Tax-Gen. § 10-902 (quarterly estimated income tax return payments). As a result, the required filing and payment due dates are extended to July 15, 2020. The income tax-related suspensions are subject to any additional requirements imposed by the Maryland Comptroller.
    • Governor’s Executive Order No. 20-03-31-01, March 31, 2020.
  • Maryland has clarified its filing and payment extensions. The payment due date for quarterly estimated income tax payments for the period ending March 31, 2020, is automatically extended from April 15, 2020, to July 15, 2020. For Maryland individual income taxpayers who request a federal extension, the Maryland income tax return is automatically extended to October 15, 2020. For corporations that request a federal income tax extension, the Maryland income tax return is automatically extended to November 15, 2020. The comptroller is extending the due date to June 1, 2020, for the following tax return filings and payments: sales and use, withholding, admissions and amusements, alcohol, beer, tobacco, cigarette and other tobacco products, licensed retailers and tobacconists, motor carrier and motor fuel and bay restoration.
    • Maryland DOR Tax Alert 04-01-20, April 3, 2020.
  • Maryland will waive penalties and interest for late payment of quarterly estimated premium taxes due on April 15, 2020, if an insurance company is unable to make such payment timely because the pandemic has impacted the operation of its premium tax administrative offices. While the penalties and interest are waived through June 1, 2020, the due date for the payment of quarterly premium taxes remains April 15, 2020.
    • Maryland DOI Bulletin 20-19, April 7, 2020.
  • Maryland has further extended business-related tax returns due in the months of February, March, April and May 2020 to July 15, 2020 (previously June 1, 2020). The extension applies to sales and use; withholding; admissions and amusement; alcohol, tobacco and motor fuel excise taxes; tire recycling fee; and bay restoration fees. The extension also applies to the first and second quarterly estimated individual income tax payments for 2020.
    • Maryland Tax Alert 04-14-20A, April 14, 2020.
  • Maryland clarified that its employer withholding requirements aren’t affected by the current shift from working on the employer’s premises to teleworking because taxability is determined by the employee’s physical presence. In general, compensation paid to a Maryland nonresident who’s teleworking in Maryland is Maryland-sourced income and therefore subject to Maryland withholding. However, Maryland has a reciprocal agreement with the bordering states of Virginia, Washington, D.C., West Virginia and Pennsylvania, and residents of these states who earn wages, salaries, tips and commission income for services performed in Maryland are exempt from Maryland state income tax. Maryland will consider pandemic factors in making determinations related to nexus and income sourcing.
    • Maryland Tax Alert 04-14-20B, April 14, 2020.
  • Maryland issued clarification on its COVID-19 relief. The law establishes a refundable, 50 percent payroll tax credit covering up to $10,000 paid per employee, including benefits from the period of March 13 to Dec. 31. Business and individual taxpayers will get a 90-day extension for tax payments without interest or penalty for late payments if 2019 tax payments are made by July 15. The comptroller extended business-related tax filing deadlines to June 1. Businesses who paid sales and use taxes for March may request a refund of the payment. The current year’s deadline to submit annual reports and personal property tax returns is automatically extended to July 15.
    • Maryland DOR Notice, April 17, 2020
  • Maryland has updated its guidance on income tax withholding requirements for teleworking situations due to the COVID-19 pandemic to recognize the temporary nature of interim workplace models and employee deployment in light of the current health emergency. As such, the guidance clarifies that the agency won’t use these temporary measures to impose business nexus to alter the sourcing of business income or to impose additional withholding requirements on the employer.
    • Maryland Tax Alert 05-04-20, May 4, 2020.
  • Maryland has extended the deadline for insurance companies to report and remit unclaimed property for 2019 to July 31.
    • Maryland Comptroller of the Treasury, Unclaimed Property FAQ, June 25, 2020.
  • Maryland reminder that the deadline to submit annual reports and personal property tax returns has been automatically extended to July 15, 2020, as part of the response to the COVID-19 pandemic. However, the state won’t grant any further deadline extensions for annual business filings this year. To maintain good standing status, all businesses formed, qualified or registered to do business in Maryland must file an annual report every year.
    • Maryland State Department of Assessments and Taxation Release, June 29, 2020.
  • Maryland issued guidance related to the CARES Act conformity. As a conformity state, Maryland generally conforms to federal income tax laws except where Maryland has enacted decoupling legislation or where the revenue effect of an IRC amendment for a taxable year that begins in the calendar year in which the amendment is enacted is greater than $5 million. The Bureau of Revenue Estimates concluded that each of the CARES Act key provisions would have an effect of greater than $5 million in each year affected, 2018, 2019 and 2020. However, the Maryland decoupling statute permits decoupling only for the purposes of calculating Maryland taxable income for the year in which the amendment is enacted. Therefore, Maryland is automatically decoupled from the CARES Act provisions affecting tax year 2020 but conforms to CARES Act provisions affecting tax years 2018 and 2019. Maryland has already decoupled from bonus depreciation, but it does conform to the provision that classifies QIP as 15-year property for all tax years beginning after December 31, 2017.
    • Maryland Tax Alert 07-24, July 24, 2020.

Massachusetts

  • The DOR will provide an extension until June 20 for payments of sales, meals and room occupancy taxes for businesses that paid less than $150,000 in those taxes in 2018.
    • Massachusetts Emergency Regulation Section 62C.16.2.7, effective March 19, 2020.
  • The DOR will waive penalties for meals and room occupancy returns and payments due during the period of March 20 through May 31 for vendors whose cumulative sales and use tax liability in the 12 months ending February 29 was at least $150,000.
    • Massachusetts DOR Technical Information Release TIR 20-2, March 19, 2020.
  • Massachusetts is extending the individual income tax return filing and payment deadline from April 15, 2020, to July 15, 2020.
  • Massachusetts is extending property tax bill and exemption application due dates from April 1 or May 1 to a date not later than June 1. Interest and other penalties for late payment for payments with due dates on or after March 10 are waived when payment is made before June 30.
    • Governor Charlie Baker announcement, March 27, 2020 and H.B. 4598, effective April 3, 2020.
  • Massachusetts extended sales and use tax return filing and tax payment due dates as follows: 1) suspending returns and payments with due dates falling during the period beginning March 20 and ending on May 31 for vendors with a cumulative sales tax liability under $150,000 for the 12-month period ending February 29; 2) rescheduling these due dates to June 20; and 3) specifying that the suspension doesn’t apply to marijuana retailers, marketplace facilitators or motor vehicle vendors.
    • Massachusetts DOR Emergency Reg. § 62C.16.2, effective March 19 and generally expires June 19, 2020.
  • As the Commissioner’s authority to delay due dates doesn’t extend to corporate excise filings and payments, the DOR 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.
    • Massachusetts DOR Technical Information Release TIR 20-4, April 3, 2020.
  • Massachusetts announced additional tax deadline extensions. Personal, fiduciary and trust income tax and partnership composite return filing and tax payment due date is extended from April 15 through July 15. The first and second installments of estimated income and fiduciary tax payment deadlines are extended through July 15. Corporate excise taxpayers must pay the amount required on the April 15 due date for an automatic six or seven-month extension. Sales tax filing and payment deadlines, including meals taxes, are extended through June 20. Room occupancy excise tax filing and payment deadlines are extended through June 20, and the associated penalties are waived subject to certain conditions.
    • Massachusetts DOR Notice, April 9, 2020.
  • Legislative authorization for the local chief executive officer or committee of a city, town or district to waive interest and other penalty for late payment of any excise, tax, betterment assessment or apportionment thereof, water rate or annual sewer use or other charge added to a tax for any payments with a due date on or after March 10, 2020, where payment is made after its respective due date but before June 30, 2020.
    • H.B. 4616, effective April 10, 2020.
  • Massachusetts adopted a sourcing rule for personal income tax withholding from employees who telecommute during the pandemic. Employers must source compensation to Massachusetts, and withhold income tax, for personal services performed by a nonresident who, immediately before the emergency, was an employee engaged in performing those services in the state and who during the emergency is performing those services from a location outside the state. A resident working in Massachusetts during the emergency can claim a credit for income taxes paid to another state due to that state’s sourcing rules. Massachusetts also will not require withholding from the employer if it must withhold income tax for the employee in the other state.
    • Massachusetts 830 CMR 62.5A.3, effective April 21, 2020.
  • As to the matter of nexus, the Massachusetts DOR asserted that for the duration of the Massachusetts COVID-19 state of emergency, the department won’t consider the presence of one or more employees who previously worked in another state but who are working remotely from Massachusetts solely due to the COVID-19 pandemic to be sufficient in and of itself to establish either corporate nexus or nexus for sales and use tax collection purposes. Further, for the duration of the COVID-19 state of emergency, services performed by such an employee in Massachusetts won’t be considered to increase the numerator of the employer’s payroll factor for corporate apportionment purposes.
    • Technical Information Release 20-5, April 21, 2020.
  • The DOR will provide an extension until September 20 for payments of sales, meals and room occupancy taxes for fiscal businesses that paid less than $150,000 in those taxes for the year ending February 29.
    • Gov. Charlie Baker announcement and Massachusetts 830 CMR 62C.16.2, June 18, 2020.
  • Massachusetts issued guidance on income tax treatment for selected provisions of the CARES Act. The guidance provides that 1) 2020 recovery rebates to individuals aren’t subject to the taxes; 2) coronavirus-related distributions from certain retirement plans are includable in the individual’s state gross income and there isn’t any additional exemption of 10 percent provided; 3) qualified education loan payments made by an employer aren’t excluded from an employee’s gross income; 4) state gross income excludes any amount forgiven for a corporate borrower under the loan forgiveness to small businesses provision of the CARES Act; and 5) there’s a temporary easing of the charitable contribution limitation for corporate excise purposes.
    • Massachusetts DOR Technical Information Release 20-9, July 13, 2020.
  • Massachusetts residents are generally required to pay Massachusetts taxes on their personal income, no matter the source of that income. A resident engaged in performing services from a location outside of Massachusetts, and who began performing such services in Massachusetts due to a pandemic-related circumstance, will be eligible for a credit for income taxes paid to the state where the employee was previously providing services. Nonresidents are taxed on their gross income earned within the state, regardless of whether they’re employees of a Massachusetts business or obtain income from their own business or trade. All compensation received for 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 is performing services from a location outside Massachusetts due to a pandemic-related circumstance will continue to be treated as Massachusetts source income subject to personal income tax.
    • Massachusetts 830 CMR 62.5A.3; the emergency rule is effective July 21, 2020, and will sunset on December 31 or 90 days after the governor lifts the state of emergency.
  • Massachusetts clarified the personal income and withholding tax obligations of and related to employees working from home during the pandemic. The guidance states that one or more employees working from home won’t subject a business to a sales tax collection obligation or to the corporate excise tax and that businesses claiming a nexus exemption must maintain written records sufficient to substantiate the existence of a pandemic-related circumstance.
    • Massachusetts DOR Technical Information Release 20-10, effective July 21, 2020, and until the earlier of December 31 or 90 days after the state of emergency is lifted.
    • Supersedes TIR 20-5.

Michigan

  • Michigan is waiving late-filing penalties for sales and use tax and employer withholding for 30 days on original returns originally due March 20, 2020.
    • Treasury Department Notice, March 17, 2020.
  • Michigan is extending the deadline for residents to pay back property taxes and avoid foreclosure. The tax foreclosure deadline moves from March 31 to May 29, or 30 days after the state of emergency is terminated, whichever occurs first.
    • Executive Order 2020-14, March 18, 2020.
  • Michigan is extending the filing and payment deadline for state and local income tax as follows: an annual state income tax return/payment otherwise due on April 15, 2020, will instead be due on July 15, 2020, and an annual state income tax return/payment otherwise due on April 30, 2020, will instead be due on July 31, 2020. Estimated payments otherwise due on April 15 are now due July 15. All penalties and interest are abated through the extended due dates.
    • Executive Order 2020-26, March 27, 2020.
  • Michigan is waiving penalty and interest for 30 days for the late payment or late filing of any sales and use tax or withholding tax return (including the quarterly return) due April 20 (now due May 20, 2020).
    • Treasury Department Notice, April 14, 2020.
  • Michigan has further extended due dates for income taxes with full suspension of penalties and interest. Individual, fiduciary, and composite returns and payments otherwise due from April 15, 2020, and before July 15, 2020, are now due on July 15, 2020. Corporate income tax returns and payments otherwise due from April 30, 2020, and before July 31, 2020, are now due on July 31, 2020. The extended due dates apply to both calendar and fiscal year filers. They also apply to requests for additional extensions of time to file.
    • Michigan Treasury Department Notice, April 17, 2020.
  • Michigan is waiving penalty and interest for the late payment or filing of any monthly or quarterly sales, use and withholding tax return due May 20, 2020, for 31 days. The waiver is effective through June 22, 2020. The waiver applies to any payment or return that has previously been waived through May 20, 2020. Therefore, this waiver includes any monthly or quarterly payments or returns originally due on March 20 or April 20. The waiver doesn’t apply to accelerated sales, use or withholding tax filers.
    • Treasury Department Notice, May 15, 2020, and May 26, 2020.
  • Michigan is extending from June 1, 2020, to June 30, 2020, the deadline to file an affidavit to claim the principal residence exemption for the 2020 summer tax levy and all subsequent tax levies.
    • Michigan S.B. 940 (P.A. 96), Laws 2020, effective June 24, 2020.

Minnesota

  • The DOR will provide a 30-day extension until April 20 for sales tax returns due March 20.
    • Minnesota DOR Notice, March 18, 2020.
  • The DOR will provide a 60-day filing extension for MinnesotaCare excise tax returns that were due on March 16, provided: 1) taxpayers must request an extension by April 15; and 2) taxpayers can request penalty and interest relief for reasonable cause on payments that were due March 16.
    • Minnesota DOR Notice, March 20, 2020.
  • The DOR will extend individual income tax return and payment deadlines to July 15, 2020. The grace period does not apply to state estimated tax payments for individual income taxes or to income taxes for business entities.
    • Minnesota DOR Notice, March 23, 2020.
  • Minnesota is extending the grace period for sales and use tax payments for specified types of business in Minnesota Executive Order 20-04, such as bars, restaurants and other places of public accommodation. The DOR won’t assess penalties or interest on monthly sales and use tax payments due March 20 or April 20 if paid by May 20.
    • Minnesota DOR Notice, April 9, 2020.
  • Minnesota announced an automatic 60-day excise tax grace period extension to June 15 from April 15 applicable to provider tax, hospital tax, surgical center tax, wholesale drug distributor tax and legend drug use tax. An additional 60-day filing extension is available on request for 2019 annual MinnesotaCare returns that were due March 16. Taxpayers also can request relief from penalties and interest for late payments for reasonable cause, including emergency declarations by the president and governor due to the COVID-19 pandemic.
    • Minnesota DOR Notice, April 10, 2020.
  • Minnesota won’t seek to establish nexus for any business tax solely because an employee is temporarily working from home due to the COVID-19 pandemic. Taxpayers have until Oct. 15 to file a 2019 tax return by paying 90 percent of the tax due by July 15. Taxpayers may calculate their present year estimated tax payments on 75 percent of their 2018 liability. If a refund results from a payment made after April 15, it won’t prevent an underpayment of the estimated tax penalty on the present year return.
    • Minnesota DOR Notice, April 14, 2020.
  • Minnesota has extended the occupation tax annual payments due May 1 to July 1. The DOR won’t assess penalties or interest during the grace period as long as full payment, or 90 percent of the amount due for extension filers, is paid by July 1. The grace period only applies to payments. Excise taxpayers should still file the annual occupation tax return by May 1, unless they plan to file under the extension guidelines. Returns filed on extension are still due December 1.
    • Minnesota DOR Notice, April 24, 2020.
  • Minnesota has extended the MinnesotaCare monthly estimated payments originally due May 15 to June 15, 2020, with full abatement of penalty and interest. The 30-day grace period is automatic and applies to provider tax, hospital tax, surgical center tax, wholesale drug distributor tax and legend drug use tax.
    • Minnesota Department of Revenue Notice, May 14, 2020.
  • Minnesota legislation clarifies that recyclable materials are exempt from taxation when the materials are delivered to a disposal facility or resource recovery facility for reasons related to COVID-19 and the delivery is authorized by the commissioner of the Pollution Control Agency.
    • Minnesota H.F. 37, Laws 2020, passed June 18, 2020, and available for recyclable materials delivered after April 1.

Mississippi

  • Deadlines for 2019 individual income tax and corporate income tax filing and payments are extended until May 15. The extension also applies to the first-quarter 2020 estimated tax payment and withholding tax payments for the month of April. Penalty and interest will not accrue on the extension period through May 15, 2020. The extension does not apply to sales tax, use tax or any other tax types.
    • Mississippi DOR Notice 2020-01, March 23, 2020.
  • The DOR announced extension of income tax filing and payment deadlines to May 15; delay in imposition of interest and penalties on any unpaid sales and use or local tax balance for the period covered by the declared national emergency; extension of the homestead application deadline to May 1; suspension of the accrual of penalty and interest on all new assessment and all prior liabilities effective March 15 and continuing through the end of the declared national emergency; and acceptance of electronic mail and electronic payments.
    • Mississippi DOR Press Release, March 26, 2020.
  • Mississippi has updated its COVID-19 guidance to include: 1) suspension of the accrual of interest and penalty on all new assessments and all prior liabilities effective March 15, 2020, and this remains in effect until the end of the national emergency; 2) Mississippi will not use any changes in employees’ temporary work locations due to the pandemic to impose income tax nexus or alter apportionment of income; 3) the DOR has the authority to extend all sales and use and local tax levies by only one month without requiring the imposition of interest and while the due date has not yet been extended, the DOR will delay the imposition of interest and penalty on any unpaid tax balance for the period covered by the presidentially declared national emergency; 4) the DOR has no authority to extend property taxes; 5) the property tax homestead application deadline has been extended until May 1, 2020; 6) the due date for personal property renditions/payments furnished by taxpayers to the county tax assessor has been extended for 30 days to May 1, 2020; and 7) the due date for real and personal land rolls furnished from county tax assessors to boards of supervisors has been extended for 30 days.
    • Mississippi DOR Notice, March 26, 2020.
  • Mississippi has updated its tax relief provisions due to the pandemic. The due date for filing individual, corporate, franchise and fiduciary income tax returns, extensions and first-quarter estimated payments are extended to May 15, 2020. A balance of tax due after May 15, 2020, is potentially subject to the late payment penalty of 0.5 percent per month, not to exceed 25 percent and late payment interest of 0.5 percent per month. A return not submitted by October 15 is potentially subject to a late filing penalty of 5 percent per month, not to exceed 25 percent.
    • Mississippi DOR Notice 80-20-001, May 1, 2020.
  • Mississippi has temporarily suspended the requirements associated with the International Registration Plan (IRP) and International Fuel Tax Agreement (IFTA) for any motor vehicle engaged in interstate emergency relief efforts that will be traveling through Mississippi. The expiration date of an apportioned registration issued under the IRP, which expires on April 30, 2020, is suspended, and the expiration date is extended to May 31, 2020.
    • Mississippi DOR Executive Order, May 1, 2020.
  • Mississippi has extended the due date for filing corporate, individual and fiduciary income tax returns and making first- and second-quarter estimated payments to July 15, 2020 (previously May 15, 2020).
    • Mississippi DOR Notice 80-20-002, May 5, 2020.
  • Mississippi income tax legislation revises the definition of “gross income” to exclude amounts received as advances and/or grants under the CARES Act; any and all canceled indebtedness provided for under the CARES Act; amounts received as payments from the Mississippi COVID-19 Relief Payment Fund; and amounts received as grants under the 2020 COVID-19 Mississippi Business Assistance Act.
    • Mississippi H.B. 1748, Laws 2020, effective January 1, 2020.

Missouri

  • The state is providing individual income, corporate income and trust income tax relief conforming to the IRS actions: 1) the filing deadline extension moves to July 15 from April 15; 2) the extension for estimated tax payments for the 2020 tax year is similarly extended; 3) interest and penalty waiver for taxpayers who file their return or request an extension by July 15.
    • Governor's News Release, March 21, 2020.
  • Missouri is extending the June 15 second estimated income tax payment deadline for corporations and individuals to July 15, 2020, to mirror the federal guidance. The DOR previously extended the deadline for estimated tax payments due on April 15, 2020, to July 15, 2020.
    • Missouri DOR Notice, April 13, 2020.
  • Missouri is extending the partnership return filing deadline from April 15 to July 15, 2020, to mirror federal guidance.
    • Missouri DOR Notice, April 14, 2020.
  • Missouri legislation excludes the amount of any tax credits reducing a taxpayer's federal tax liability pursuant to the CARES Act for purposes of determining the taxpayer's federal income tax liability allowable as a deduction under state law for tax year 2020. For tax year 2020, the legislation also excludes the amount of a federal income tax refund attributable to a tax credit reducing a taxpayer's federal tax liability pursuant to the CARES Act for purposes of determining the addback adjustment to a taxpayer's federal adjusted gross income for federal income tax refunds received for a prior year that resulted in a Missouri income tax benefit.
    • Missouri S.B. 676, Laws 2020, effective August 28, 2020, and as noted above.

Montana

  • The DOR extended individual income tax filing and payments to July 15 in accordance with the new federal filing deadline. The deadline for those making estimated tax payments for the first quarter of 2020 also has been extended to July 15.
    • Montana DOR Notice, March 20, 2020.
  • The video gambling machine tax for the third quarter of the fiscal year 2020 is due on April 15, but Montana will waive/reduce penalties imposed for licensees that remain closed in compliance with the COVID-19 pandemic executive orders.
    • Emergency Montana Admin. Reg. 23-5-610, effective April 2, 2020.
  • Montana has clarified the taxation and deductions for the PPP. The DOR notes that the PPP is a loan at first but becomes a grant if certain requirements are met. To the extent the loans are forgiven under the CARES Act, the amounts aren’t included in gross income and aren’t taxable. Because the PPP is a loan-grant and not a credit, Mont. Code Ann. §15-30-2110(4) doesn’t apply and the business expenses offset by the grant aren’t deductible for Montana tax purposes either.
    • Montana DOR Notice, May 12, 2020.

Nebraska

  • Nebraska extended the due date for individual income, corporate income and trust income tax filings and payments to July 15 from April 15. This extension includes estimated payments originally due on April 15. Taxpayers must request abatement of penalty and interest.
    • Governor’s Office, News Release, March 23, 2020.
  • Nebraska is waiving personal property tax penalty and interest waivers for taxpayers affected by COVID-19. The 10 percent penalty for filing a return after May 1, 2020, and before June 30, 2020, and the 25 percent penalty for filing a return after July 1, 2020, is waived for the rest of tax year 2020. The forfeiture of the exemption provided by the Personal Property Tax Relief Act for failure to timely report tangible personal property has been waived until July 15, 2020. Interest will be assessed on all value added to a personal property return after July 15, 2020, from the date the tax becomes delinquent.
    • Governor Pete Ricketts’ Executive Order 20-17, April 9, 2020.

New Hampshire

  • New Hampshire extended the deadline to file and pay corporate income and individual income tax until June 15 without penalties or interest. The extension is only valid for business taxpayers who owed $50,000 or less in taxes (BPT and BET tax liability) and I&D taxpayers who owed $10,000 or less in taxes for tax year 2018.
  • All other taxpayers need to file an extension by April 15 and pay in no less than their 2018 tax liability and the Department of Revenue Administration will grant an automatic seven-month extension and waive any applicable interest or penalties.
    • New Hampshire Technical Information Release 2020-001, March 30, 2020.
  • New Hampshire is authorizing municipalities and counties to use their abatement authority to grant blanket abatements of interest charged on taxes not paid after their assessment and suspending foreclosure proceedings related to late payment of property taxes.
    • Governor’s Emergency Order No. 25, effective April 3, 2020, through the duration of the State of Emergency declared in Executive Order 2020-04.

New Jersey

  • New Jersey announced the state corporate income, individual income and corporation business tax filing deadline will be extended to July 15 from April 15.
    • Governor’s Press Release, April 1, 2020.
  • New Jersey’s legislative COVID-19 mitigation extends the gross income tax (GIT) and corporation business tax (CBT) filing and payment deadlines to July 15, 2020, without interest or penalties. The extension applies to GIT and CBT returns and payments with original due dates of April 15, 2020, including corporate, individual and partnership returns and quarterly payments with this due date. The extension doesn’t apply to fiscal-year taxpayers. The bill also extends the statute of limitations for the DOR to assess GIT and CBT to 90 days after the conclusion of the New Jersey COVID-19 state of emergency, but no corresponding change is made to the statute of limitations for refunds. Further, the DOR isn’t required to pay interest on overpayments for six months after the conclusion of the COVID-19 state of emergency. Finally, the bill extends the end of the state’s fiscal year by three months from June 30, 2020, to September 30, 2020.
    • S.B. 2338, effective April 14, 2020. o New Jersey DOR Notice, April 17, 2020.
  • New Jersey announced the automatic extension to April 15, 2020, for 2019 corporation business tax returns for fiscal-year corporate tax filers with accounting periods ending between July 31, 2019, and November 30, 2019. The DOT provided that: 1) if taxpayers submit an application for further extension of time to file, the due dates would be May 15, June 15, July 15, August 15 and September 15; 2) estimated payments with an original due date of April 15 are extended to July 15 to maintain consistency with the federal tax extensions; and 3) the extension applies only to the return filings and doesn’t extend the time to make all required payments except for estimated tax payments.
    • New Jersey Division of Taxation Notice, April 14, 2020.
  • New Jersey is providing property tax relief by allowing municipalities to extend the grace period until June 1 for second-quarter calendar-year and fourth-quarter fiscal-year tax payments that are due May 1 and restricting municipalities to conduct an accelerated tax sale with respect to the installment for payment of fourth-quarter fiscal-year taxes if the grace period is instituted.
    • Governor’s Executive Order No. 130, April 28, 2020.
  • New Jersey clarified that sales tax nexus won’t be created by telecommuters temporarily working within New Jersey during the COVID-19 pandemic as long as sales in New Jersey remain below the thresholds for nexus provided by N.J. Rev. Stat. §54:32B-3.5(a). For withholding and individual income tax purposes, New Jersey sourcing rules dictate that income is sourced based on where the service or employment is performed based on a day’s method of allocation. However, during the temporary period of the COVID-19 pandemic, wage income will continue to be sourced as determined by the employer in accordance with the employer’s jurisdiction.
    • New Jersey DOR FAQs, May 6, 2020.
  • New Jersey legislation authorizes the Director of the Division of Local Government Services to extend any deadlines applicable to local government units with respect to the issuance of any tax bill, except for quarterly tax installment dates, during an emergency period. It also permits municipalities to institute an extended grace period for the first $10,000 due and payable for the tax quarter and extend payment dates by a municipality due to a county, school district or any other taxing district, equal to the number of days of the statutory extended grace period.
    • New Jersey A.B. 3969, effective May 15, 2020.
  • New Jersey clarified that for sales tax purposes, a surcharge for COVID-19 precaution and/or prevention costs included on customers’ invoices is subject to sales tax depending on the taxability of the service provided or the product sold in the transaction. Thus, if a service or product a business is offering is subject to sales tax, the COVID-19-related surcharge also is subject to tax, and vice versa.
    • New Jersey DOR Notice, July 24, 2020.

New Mexico

  • The DOR announced extended return and payment deadlines for corporate and personal income tax returns and payments due between April 15 and July 15, which may be submitted without penalty no later than July 15. Withholding returns and payments due between March 25 and July 25 may be submitted without penalty no later than July 25. While no penalties will be imposed if a taxpayer complies with the extensions, the DOR notes that it’s statutorily prohibited from waiving interest imposed on late payments from the original statutory due date.
    • New Mexico DOR Bulletin B-100.35, March 20, 2020.
  • New Mexico won’t charge interest on personal and corporate income taxes filed and paid by the extended July 15 deadline, as the deadline is tied to federal deadlines.
    • New Mexico DOR Notice, March 25, 2020.
  • New Mexico would temporarily waive penalties and interest for tax liabilities to help taxpayers cope with the coronavirus pandemic. The waivers would apply to withholding taxes, personal and corporate income taxes and gross receipts taxes generally due in the second quarter of 2020. Penalties and interest for managed audit liabilities from September 2019 to January 2020 also would be waived. The taxes would have to be paid within a year.
    • New Mexico H.B. 6, Laws 2020, pending governor’s signature.

New York

  • New York will follow the IRS in waiving penalties and interest for late tax returns and payments filed by July 15 and also will waive penalties and interest on sales tax collections due March 20 (the sales tax deadline will stand, but penalties and interest won’t be charged).
    • Gov. Andrew M. Cuomo and State Budget Director Robert F. Mujica announcement, March 20, 2020.
  • New York will abate interest and penalties on sales tax collections due March 20, extending these filings an extra 60 days.
    • Department of Taxation and Finance Notice No. N-20-1, March 20, 2020.
  • New York extended the due date to July 15, 2020, for personal income tax and corporation tax returns and payments originally due April 15, 2020. The extension applies to returns for individuals, fiduciaries and corporations taxable under Tax Law Articles 9, 9-A and 33. Tax year 2019 returns due on April 15, 2020, and related payments of tax or installments of tax, including installments of estimated taxes for the 2020 tax year, will not be subject to any failure to file, failure to pay, late payment or underpayment penalties or interest if filed and paid by July 15, 2020. No extension is provided in the notice for the payment or deposit of any other type of state tax, or for the filing of any state information return. In addition, remittance of income tax withheld by employers required to be made using Form NYS-1, Return of Tax Withheld, must be made on time.
    • Department of Taxation and Finance Notice N-20-2, March 2020.
  • New York has further extended sales and use tax returns and payments originally due by March 20 to June 22, with full waiver of penalty and interest.
  • The order also extends the period for paying property taxes without interest or penalties by 21 days in certain localities; suspends penalties for late payment of county, town, county district and town district property taxes and assessment in Westchester County; and extends to June 1 the deadline to pay school taxes on real estate in Nassau County without interest or penalty.
    • Governor’s Executive Order No. 202.32 and New York Department of Taxation and Finance Notice N-20-6, May 21, 2020.
  • New York has extended the temporary suspension and modification of laws due to COVID-19 for property tax purposes to include extending the period for paying taxes without interest or penalties by 21 days in certain localities that have requested an extension and retroactively extending the 21-day period for paying taxes without interest or penalties that were due by April 1 in the village of Thomaston, in Nassau County.
    • Governor’s Executive Order No. 202.36, June 2, 2020.
  • New York allows municipalities to extend the deadline for the filing of applications and renewal applications for real property tax abatement or exemption programs to July 15, 2020. The governing body of such municipality must adopt a local law, ordinance or resolution to extend the deadline.
    • New York S.B. 8122 (Laws 2020), effective June 8, 2020.
  • New York has expanded the authority of the Commissioner of Taxation and Finance to 1) abate late filing and payment penalties and interest for a period up to 100 days for taxpayers who were required to file returns and remit sales and use taxes by March 20 for the sales tax quarterly period that ended February 29; 2) allow real property tax assessment rolls to be filed up to 30 days late; 3) allow assessment complaints to be heard by tax assessing units at a date 21 days after the filing of the tentative roll; and 4) allow Boards of Assessment Review to hear complaints remotely.
    • Governor’s Executive Order No. 202.44, June 21, 2020.
  • New York has extended the temporary suspension and modification of laws due to COVID-19 for property tax purposes to include extending the period for paying taxes without interest or penalties by an additional 21 days in certain localities that have requested an extension and to permit the city of Buffalo to waive the additions prescribed therein on unpaid 2019-2020 city taxes for the months of April, May and June.
    • Governor’s Executive Order No. 202.45, June 26, 2020.
  • New York has extended the temporary suspension and modification of laws due to COVID-19 for property tax purposes through August 12, 2020. In addition, the state clarified that any extension of the period for paying property taxes without interest or penalties (pursuant to Real Property Tax Law Section 925-a) is no longer in effect.
    • Governor's Executive Order No. 202.51, July 13, 2020.
  • New York has extended the temporary suspension and modification of laws due to COVID-19 for sales and use tax purposes until August 20, 2020, as previously stated in Executive Orders 202.22 through 202.26 and including 202.32. The modification doesn’t apply to the provision authorizing the extension of payment of sales and use taxes without penalty by the Commissioner of Tax and Finance.
    • Governor's Executive Order No. 202.53, July 21, 2020.

North Carolina

  • The DOR is providing a penalty waiver applicable to tax deadlines falling between March 15 and March 31, as long as the filing or payment is made by April 15. Taxpayers seeking the extension must file a state form NC-5500 and write “COVID-19” at the top.
    • North Carolina DOR Notice, March 17, 2020.
  • The DOR will waive late tax payment penalties through July 15 for individual income, corporate income and trust income taxpayers. Interest won’t be waived, and the due date for filing remains April 15.
    • North Carolina DOR Notice, March 19, 2020.
  • The DOR extended the state’s income tax filing deadline to July 15, which is the new federal income tax deadline.
    • North Carolina DOR Notice, March 20, 2020.
  • The North Carolina Department of Revenue (DOR) on March 31 announced an expansion of late action tax penalty relief for failure to obtain a license, file a return or pay a tax for taxpayers affected by the COVID-19 pandemic. The DOR on March 17 announced penalty relief for certain taxpayers with returns or payments due between March 15 and March 31. The expanded relief applies from March 15 through July 15 to income, franchise, withholding, sales and use, scrap tire disposal, white goods disposal, motor vehicle lease and subscription, solid waste disposal, dry cleaning solvent and primary forest products taxes, and to various taxes administered by the Excise Tax Division. The relief also applies to freight car line companies and to 911 service charges for prepaid telecommunications services.
    • North Carolina Department of Revenue Press Release, Mar 31, 2020
  • North Carolina legislation waives interest from April 15, 2020, through July 15, 2020, for the underpayment of corporation income, corporation franchise, personal income, partnership income and estate and trust income taxes for returns and estimated payments due between those dates. The state also has extended the deadlines for filing a request for a refund, tax review or petitions for tax cases until July 15, 2020, for periods originally expiring between April 15, 2020, and before July 15, 2020.
    • North Carolina S.B. 704, Laws 2020, effective May 4, 2020.
    • North Carolina DOR Notice, May 6, 2020.
  • North Carolina has decoupled from CARES Act changes related to the treatment of net operating losses, loan forgiveness and charitable giving. The state will still align its tax code with a lower federal threshold for medical expense deductions.
    • North Carolina H.B. 1080, Laws 2020, effective June 30, 2020.

North Dakota

  • The DOR noted that while the income tax filing deadline remains April 15, no penalty or interest will be assessed if the return and payment are filed by July 15.
    • DOR Guidance on COVID-19, March 20, 2020.
  • North Dakota extended the deadline for filing the first quarter 2020 excise tax return for charitable gaming organizations due originally on April 30 until June 30. Any interest charged will be waived for the gaming tax that is paid by the extension date.
    • North Dakota Attorney General Announcement, March 26, 2020.
  • North Dakota updated its COVID-19 guidance. The estimated tax payment for personal income tax that was due on April 15, 2020, will not be due until July 15, 2020. The due date for partnership, S corp and composite tax returns is extended until July 15, 2020. There is no due date extension for fiscal year tax returns that are due on May 15, 2020, and June 15, 2020. There is no due date extension for sales tax returns or responding to notices from the State Tax Commissioner.
    • North Dakota DOR COVID-19 Guidance, April 3, 2020.
  • North Dakota’s tax extension now generally applies to all taxpayers that have a filing or payment deadline falling on or after April 1, 2020, and before July 15, 2020. The expanded extension also provides relief for estimated tax payments due on or after April 1, 2020, and before July 15, 2020, without interest.
    • North Dakota DOR Notice, April 15, 2020.
  • North Dakota won’t assert nexus solely based on whether taxpayers have employees present in the state in a temporary telecommuting capacity because of the coronavirus outbreak. Likewise, in the case of employees whose payroll is ordinarily assignable to another state, North Dakota won’t require inclusion of that payroll in the numerator of the payroll factor if the telecommuting from North Dakota is attributable to a COVID-19-related response and intended to be temporary.
    • North Dakota DOR FAQs, April 24, 2020.

Ohio

  • Ohio will extend the deadline to file and pay the state income tax to July 15, waiving penalty and interest. The extension applies to: individual income tax; school district income tax; pass-through entity tax; department-administered municipal net profit tax; and the first and second quarterly payments, normally scheduled for April 15 and June 15 for most taxpayers.
    • DOR Notice, March 27, 2020. o H.B. 197, effective March 27, 2020.
  • Ohio is allowing an extension to the statute of limitations on refund claims due to expire between March 9, 2020 and the end of the governor's COVID-19 emergency declaration (or July 30, 2020, whichever is earlier).
    • DOR Notice, April 1, 2020.
  • Ohio has extended the date to pay real property taxes and assessments for the second-half collection of tax year 2019 for the following counties: Belmont, Cuyahoga, Delaware, Franklin, Geauga, Monroe, Montgomery, Paulding and Washington.
    • Ohio DOR Notice, May 6, 2020.
  • PENDING: Ohio legislation treats the forgiven amount of a PPP loan excluded from gross income for federal income tax purposes under the CARES Act as not subject to the Ohio Commercial Activity Tax.
    • Ohio H.B. 481, Laws 2020, pending finalization and signature as of June 11, 2020.

Oklahoma

  • Oklahoma will mirror the IRS deadlines and provide both income tax filing and payment extensions from April 15 to July 15. This extension also applies to the first-quarter payment for tax year 2020, normally due on April 15.
    • Tax Commission Order, March 20, 2020.
  • Oklahoma issued clarifications related to COVID-19 tax changes. The deadline for April 15 estimated tax payments has been extended to July 15; however, the regularly scheduled June 30 estimated tax payment deadline has not been extended. The new July 15, 2020, deadline for the filing and payment of 2019 Oklahoma income tax returns is extended to all taxpayers with no need for taxpayers to apply in order to receive the extension. An electing pass-through entity may defer payment of the 2019 pass-through entity tax and filing of its 2019 income tax return until July 15, 2020, as well. If a taxpayer files a 2019 individual income tax return electronically through a preparer or the internet, the due date is July 20, 2020. Any payment of income taxes due on July 20, 2020, must be remitted electronically in order to be considered timely paid. If the balance due on an electronically filed return is not remitted electronically, penalty and interest will accrue from the original due date.
    • Oklahoma Tax Commission, April 8, 2020.
  • In the event the Oklahoma governor declares a “catastrophic health emergency,” and upon the written request of the county treasurer, the board of county commissioners will postpone delinquent personal and real property tax sales and related delinquent tax notices and publications. The county treasurer will designate a period of postponement of up to one year.
    • Oklahoma H.B. 2740, Laws 2020, effective May 18, 2020.
  • Oklahoma issued a summarized coronavirus guidance document. It reminds taxpayers that individual, small business, fiduciary and partnership Forms 511, 511NR, 512S, 513, 513NR and 514 are now due July 15, 2020. The corporate income tax return Form 512 is now due August 14, 2020. An electing pass-through entity may defer payment of 2019 pass-through entity tax and filing of its 2019 income tax return until July 15, 2020. The estimated payment Forms OW8-ES and OW8-ESC, which would normally be due April 15, 2020, are both now due July 15, 2020.
    • Oklahoma Tax Commission COVID-19 FAQs, June 1, 2020.

Oregon

  • The DOR won’t assess underpayment penalties on taxpayers making a good faith effort to estimate their first-quarter corporate activity tax payments due April 30.
    • DOR Notice, March 13, 2020.
  • The due dates for February monthly fuel tax reports are extended by two weeks; monthly use fuel user and seller reports are due April 3, and motor vehicle fuel dealer, bulk distributor and terminal operator reports are due April 8.
    • Oregon Governor’s Office Notice, March 23, 2020.
  • Oregon officially announced an extension for Oregon income tax filing and payment deadlines. For personal income tax, transit self-employment tax and fiduciary taxpayers the return and payment due date for tax year 2019 is automatically extended from April 15, 2020, to July 15, 2020. For corporate (excise) income taxpayers the return and payment due date for tax year 2019 is automatically extended from May 15, 2020, until July 15, 2020. Estimated tax payments for tax year 2020 are not extended.
    • Oregon DOR Revenews, March 25, 2020; and Revenue Director Order 2020-01, March 24, 2020.
  • Oregon issued an order expanding tax filing and payment relief due to COVID-19. The measures: 1) extend individual income, corporate income, and trust income tax filing deadlines until July 15 for returns that are due on or after April 1 and before July 15 for personal income, transit self-employment, estate, partnership, S-corporation, and corporate excise taxpayers; 2) extend to 14 months the period within which the DOR may issue notices such as a Notice of Assessment; 3) extend the deadline to July 15 to file a claim for refund that would otherwise expire on or after April 1 and before July 15; 4) extend the deadline to June 15 for filing an application for property tax deferral for tax year 2020-2021; and 5) provide that interest and penalties will begin to accrue on July 16.
    • Oregon Revenue Director’s Order 2020–02, April 20, 2020 but applies retroactively to March 8, 2020.
  • Oregon has increased the filing threshold for corporate activity tax estimated payments to $10,000 (formerly $5,000) of current-year tax liability. Penalties won’t be assessed for underestimated quarterly payments or for not making a quarterly payment if businesses don’t have the financial ability to make the estimated payment.
    • Oregon DOR Notice, April 29, 2020.
    • Oregon Administrative Rule 150-317-1300, proposed April 27, 2020.
  • Oregon has determined that forgiven PPP loans, EIDL advances and Small Business Administration (SBA) loan subsidies under the CARES Act aren’t commercial activity and won’t be subject to the corporate activity tax.
    • Oregon DOR Notice, May 6, 2020.
  • Oregon amended its regulation relating to the penalty for dishonored checks, authorizing the department to not impose, or waive an already imposed, NSF penalty for a dishonored payment that occurs during the state of emergency related to COVID-19 and 90 days after the emergency is lifted.
    • Oregon Admin. Reg. §150-305-0160, effective May 21, 2020, through November 16, 2020.
  • Oregon issued a temporary regulation on a penalty waiver for the underpayment of estimated corporate activity tax payments due to COVID-19 for excise tax purposes. The regulation establishes that no penalty will be assessed against taxpayers making a good faith effort to comply with estimated corporate activity tax payment deadlines for the current year and providing factors that the department will consider when determining the good faith effort.
    • Oregon Admin. Reg. §150-317-1500, effective June 5, 2020, through December 1, 2020.
  • Oregon has extended statutory time periods and time requirements during the COVID-19 state of emergency for certain appeals, cases or proceedings and continuing for 60 days after the declaration of that state of emergency or until any extension is no longer in effect. This includes tax appeals.
    • Oregon Supreme Court Chief Justice Order No. 20-027, July 21, 2020.
  • Oregon revised guidance on various tax matters. Qualified sick leave wages and family leave wages 1) aren’t excluded from gross income as qualified disaster relief payments, 2) are taxable to Oregon employees and 3) are subject to Oregon withholding and statewide transit tax by employers. The additional $600 a week unemployment compensation offered under the CARES Act will be taxed by Oregon. Lastly, the DOR will begin paying interest on refund returns 45 days from the July 15 extended due date or later, depending on specific tax programs.
    • Oregon DOR Revenue Director’s Order FAQ, July 27, 2020.
  • Oregon has clarified, for corporate excise (income) tax purposes, the presence of teleworking employees in Oregon between March 8, 2020, and November 1, 2020, won’t be treated as a relevant factor when making a nexus determination if the employee(s) in question is regularly based outside Oregon.
    • Oregon DOR Website Notice, July 28, 2020.

Pennsylvania

  • The DOR extended the filing deadline for state taxpayers until July 15, giving filers an extra 90 days. The DOR also will waive penalties and interest on 2019 personal income tax payments through the new deadline, both for final 2019 tax returns and payments, and estimated payments for the first and second quarters of 2020.
    • Pennsylvania DOR Notice, March 23, 2020.
  • The statutory deadline for holders to file and remit unclaimed property remains April 15, 2020. However, the DOR will waive all fines, penalties and interest otherwise applicable for all late-filed reports and property received by the DOR on or before June 15, 2020.
    • Pennsylvania Treasury website, March 25, 2020.
  • Legislative COVID-19 relief includes extension of the income tax filing and payment deadlines until July 15 without penalty or interest for personal income tax, estimated personal income tax and the filing of informational returns by S corps, partnerships, estates and trusts. In addition, the law authorizes Pennsylvania’s Department of Community and Economic Development to coordinate with local units of government to extend filing and payment deadlines for the local earned income tax.
    • H.B. 1232, passed effective March 27, 2020, and DOR Notice, April 2, 2020.
  • Pennsylvania has announced that businesses that collect state sales tax won’t have to make accelerated sales tax prepayments over the next three months. This means businesses that normally have a monthly prepayment requirement won’t be charged penalties for missing the prepayment deadline during this three-month period. Under this new scenario, the DOR is asking businesses to simply remit the sales tax they collected during the prior month. The due dates to remit sales tax will be April 20, May 20 and June 22, which follows the standard due dates for monthly filers who have no prepayment requirement.
    • Governor’s Press Release, April 14, 2020.
  • Pennsylvania extended the individual income tax return filing and payment deadline to July 15 from April 15 for taxpayers who received more than $33 in total gross taxable income in 2019. The July 15 extension also applies to trust income and corporate income tax informational returns related to S corporations, partnerships, and estates and trusts. Corporate income tax returns were extended to August 14 and February 16, 2021 for officially extended returns.
    • Pennsylvania DOR Notice, April 20, 2020.
  • The Educational Improvement and Opportunity Scholarship Tax Credit is amended for pandemic periods to extend the requirement that business firms make a contribution to a scholarship organization no later than 60 days following the approval of an application for an educational tax credit to the end of the business firm’s tax year. However, the business firm must provide proof of its contribution in the form of a written acknowledgment from the organization to the Department of Community and Economic Development (DCED) within 30 days of date the contribution is made. Also, business firms fulfilling year two of a two-year commitment must be permitted to receive a tax credit of up to 90 percent of the amount contributed in year two, and the DCED is prohibited from reducing the credit authorized in year one of the two-year commitment if the year two contribution is less than the year one contribution.
    • Pennsylvania S.B. 841, effective April 20, 2020
  • Pennsylvania has extended the due date for corporations with tax returns due in May through August 14, 2020, until February 16, 2021. Note that the additional six-month extension only applies to filing the tax return; the extension doesn’t extend the time period for payment of the corporate net income tax due.
    • Pennsylvania DOR Notice, May 6, 2020.
  • As a result of COVID-19 causing people to temporarily work from home as a matter of safety and public health, the department won’t seek to impose corporate income tax nexus solely on the basis of this temporary activity occurring during this emergency.
    • Pennsylvania DOR website, May 14, 2020.

Puerto Rico

  • The Puerto Rico Treasury Department (PRTD) extended the due date for income tax returns and tax payments due in March to April 15, 2020. For returns and payments originally due April 15, 2020, the PRTD has extended the due date to May 15, 2020.
  • In addition, pass-through entities with estimated tax payments due in March will have until April 15, 2020, to make those payments. Taxpayers with estimated tax payments originally due April 15, 2020, must make those payments on or before May 15, 2020.
  • The time to satisfy certain sales and use tax obligations and to file informative returns and other returns and payments due in March is extended to April 15.
    • Puerto Rico Administrative Determination 20-03, March 15, 2020.
  • The Puerto Rico Treasury Department (PRTD) extended the due dates for various returns. The due date for monthly sales tax returns and payments due March 20 is extended to April 20, 2020. The PRTD also extends the due date for any SUT payments corresponding to February 2020 from March 20 to April 20, 2020. The PRTD also will not impose penalties on biweekly sales and use tax payments due in March.
  • For all other tax types besides income tax, the PRTD is extending the return and payment due date by one month, counted from the original due date. The extension applies to other returns, payments and deposits due from March 15 to April 15, 2020.
  • Bonds and internal revenue licenses with a due date from March 15 to March 31, 2020, are automatically extended to April 30, 2020.
    • Puerto Rico Administrative Determination 20-05, March 17, 2020.
  • The PRTD announced an additional extension for income tax returns, and payments with an original or extended due date of March 15, 2020, have until June 15, 2020, to file those returns (previously April 15, 2020). For returns and payments with original or extended due dates of April 15, 2020, the due date is extended to July 15, 2020 (previously May 15, 2020). The July 15, 2020, due date also applies to returns due on May 15 or June 15, 2020. The PRTD will not impose interest, surcharges or penalties if the tax payments are made with the returns.
  • The due date for filing informative returns for 2019 that originally were due on March 31 is extended from April 15, 2020, to May 15, 2020.
  • The due date for other returns originally due in March and April is extended to June 2020 and for other returns due in May or June 2020, the extended due date is in July 2020. The PRTD will not impose interest, surcharges or penalties if the tax payments are made with the returns.
  • Bonds and internal revenue licenses with a due date from March 15 to April 30, 2020, are automatically extended to May 31, 2020.
  • The due dates for the monthly SUT return for March, April and May are extended by 30 days. Noncompliance penalties will be abated for the biweekly SUT payments for the months of March, April, May and June 2020, provided the full amount of the SUT due for those months is paid with the monthly SUT returns.
    • Puerto Rico Administrative Determination 20-09, March 24, 2020; and supersedes AD 20-03 and AD 20-05.
  • The PRTD will not impose penalties for missing or insufficient estimated tax payments, which are required by individuals and corporations for tax year 2020; the penalties will not be imposed if the first and second installment payments are timely made in equal amounts by the due dates of the next two estimated installments, together with the corresponding estimated income tax payments due.
  • Withholding agents are not required to do the 10 percent income tax withholding at source on payments for services performed, but the service provider may choose to have the withholding continue; the waiver from the withholding is temporary during the period from March 23, 2020, to June 30, 2020.
    • Puerto Rico Administrative Determination 20-10, March 24, 2020.
  • The PRTD has further extended the exemption from state and municipal sales tax for necessities to May 31, 2020, and is providing additional time to acquire prepared food without paying the state and municipal sales tax to May 25, 2020.
    • Puerto Rico Administrative Determination 20-12, May 7, 2020, and extends the sales tax exemption previously granted through AD 20-07.
    • Puerto Rico Administrative Determination 20-13, May 15, 2020, and extends further previous sales tax-free periods in AD 20-08 and AD 20-11.
  • The PRTD has extended further the due date for filing informative returns for tax year 2019 from May 15, 2020, to May 31, 2020, because of COVID-19, with full waiver of interest, surcharges and penalties.
    • Puerto Rico Administrative Determination 20-14, May 15, 2020, amending AD 20-09.
  • The PRTD has further extended the exemption from state and municipal sales tax for necessities previously granted through AD 20-12, from May 31, 2020, to June 30, 2020. The PRTD indicates that even though the sales tax exemption is extended, the provisions of AD 20-07 and AD 20-12 still apply.
    • Puerto Rico Administrative Determination 20-16, June 1, 2020.

Rhode Island

  • Rhode Island extended the deadline for individual income, corporate income, trust income, property, bank excise, pass-through entity withholding, surplus lines and premium tax payments and filings, with no penalties and interest, to July 15.
    • Rhode Island DOR Advisory 2020-11, March 27, 2020.
  • Rhode Island has further extended with full waiver of penalty and interest until July 15, 2020, the deadline for certain tax filings and payments that had a normal due date of April 15 to June 15 (this includes the first- and second-quarter estimated tax filings); including personal income tax estimate (Form RI-1040ES); business corporation tax estimate (Form BUS-EST); political organization tax estimate (Form BUS-EST); insurance gross premiums tax estimate (Form BUS-EST); surplus lines broker/licensee tax estimate (Form BUS-EST); public service corporation tax estimate (Form BUS-EST); bank excise tax estimate (Form BUS-EST); bank deposits tax return (Form T-86); bank deposits tax estimate (Form BUS-EST); pass-through entity tax estimate (Form BUS-EST); pass-through withholding estimate (Form RI-1096PT-ES); composite tax estimate (Form RI-1040C-ES); estate and trust income tax estimate (Form RI-1041ES); estate tax return and payment (Form 100 and Form 100A); extension request (Form RI-7004); business tax automatic extension request (Form BUS-EXT); composite income tax extension payment (Form RI-4868C); pass-through withholding extension payment (Form RI-4868PT); and fiduciary income tax extension payment (Form RI-8736).
    • Rhode Island DOR Advisory No. 2020-21, May 21, 2020.
  • Nexus for income and/or sales and use tax won’t be established with Rhode Island if, due to the COVID-19 pandemic, an employee who previously worked in another state is now working remotely from Rhode Island. In addition, property temporarily located in the state, such as computers and equipment, due to the pandemic won’t trigger sales and use tax nexus with Rhode Island. The performance of any services by such employees within Rhode Island won’t cause the employer to lose the protection of Public Law 86-272. Services performed during the emergency by employees who previously worked in another state but are now working remotely from Rhode Island won’t be considered to increase the numerator of their employer’s payroll factor for purposes of apportioning income. These policies are predicated on the condition that the presence of such employees and property in Rhode Island will be temporary and that they will return to a regular workstation located outside of the state after the coronavirus state of emergency has ended.
    • Rhode Island DOR Advisory 2020-24, May 28, 2020.
  • Rhode Island announced temporary relief for retailers that have fallen behind in their sales and use tax obligations due to COVID-19. The DOR will automatically issue a temporary 90-day sales permit to retailers whose sales permits won’t be renewed on July 1 for not complying with the tax payment and filing requirements. The temporary sales permit will be effective from July 1 through September 30 and is intended to let the retailer continue to do business during the 90-day period and come into compliance with the tax filing and payment requirements.
    • Rhode Island DOR Advisory 2020-28, June 11, 2020.

South Carolina

  • Tax returns and payments normally due from April 1 through June 1 now are all due June 1, and penalties and interest won’t be charged for those extensions. This includes state individual and corporate income, sales and use, admissions and other taxes that are filed and paid to the DOR.
    • South Carolina Information Letter 20-3, March 17, 2020.
  • The DOR extended the April 15 tax filing deadline to July 15 for individual, corporate and franchise taxes to mirror the announced deadline change from the IRS.
    • South Carolina Information Letter 20-4, March 23, 2020.
  • South Carolina announced additional tax filing and payment relief to July 15, 2020, for all taxpayers who have an income tax, franchise tax or corporate license fee filing or payment deadline (originally or under a valid extension) between April 1, 2020, and July 15, 2020. This includes estimated tax payments.
    • South Carolina DOR Information Letter 20-8, April 13, 2020.
  • South Carolina clarified the available state tax relief. Income tax, franchise tax, estimated tax and corporate license fee filings and payments originally due between April 1 and July 15 are extended to July 15. All other taxes administered by the DOR due April 1 to June 1 are extended to June 1. The filing and payment relief applies to all other state taxes automatically.
    • South Carolina DOR Notice, April 14, 2020.
  • South Carolina won’t use changes solely in an employee’s temporary work location due to the remote work requirements arising from or during the COVID-19 relief period (March 13, 2020, to September 30, 2020) as a basis for establishing nexus or altering apportionment of income. Likewise, a business’s withholding requirements aren’t affected by the current/temporary shift of employees teleworking in/out of South Carolina.
    • South Carolina DOR Information Letter 20-11, May 15, 2020.
  • South Carolina announced that federal COVID-19 economic stimulus payments aren’t subject to the state’s personal income tax. Because federal income taxes aren’t deductible in arriving at an individual’s South Carolina taxable income, the federal income tax refund, or the stimulus payment in the form of a rebate or refundable tax credit, isn’t includable in arriving at South Carolina taxable income.
    • South Carolina DOR Information Letter 20-13, June 11, 2020.
  • South Carolina issued guidance on the taxability of unemployment compensation benefits under the CARES Act, which to the extent that unemployment compensation is taxable for federal income tax purposes (including the CARES Act benefits), unemployment compensation also is taxable for South Carolina income tax purposes. An individual receiving unemployment compensation may elect to have South Carolina income tax deducted and withheld from unemployment payments at the rate of 7 percent or may choose to make estimated tax payments.
    • South Carolina DOR Information Letter No. 20-15, June 12, 2020.

Tennessee

  • Tennessee will extend the deadline for businesses to file returns and make payments on the state’s franchise and excise taxes by three months to July 15.
    • Gov. Bill Lee announcement, March 24, 2020.
  • Tennessee announced that franchise taxpayers will have until July 15, 2020, to file returns and make any payments, including quarterly estimated payments, originally due April 15, 2020. Interest and late filing penalties will not be applied to returns filed and payments made by the extended due date.
    • Tennessee DOR Notice No. 20-05, March 25, 2020.
  • Tennessee extended the due date for filing and paying the Hall (individual) income tax to July 15 from April 15. The DOR stated that interest and late filing penalties won’t be applied to individual income tax returns filed and payments made on or before the extended due date.
    • Tennessee DOR Notice No. 20-06, March 26, 2020.
  • Tennessee extended the excise tax filing and payment deadline to June 15 from April 15. Interest and late filing penalties won’t be applied to returns filed and payments made on or before June 15. o Tennessee DOR Notice No. 20-07, March 31, 2020.
  • Tennessee extended the filing and payment date for professional privilege tax to July 1 from June 1 and waives all interest and penalty if filed/paid by that date.
    • Tennessee DOR Notice No. 20-11, April 1, 2020.
  • Tennessee has suspended, until July 1, the deadline for property tax relief applications for elderly low-income individuals, disabled individuals and disabled veterans, the deadline for individuals over 65 to apply for a property tax freeze and the payment due date and delinquency date for professional privilege tax.
    • Governor’s Executive Order No. 24, April 3, 2020.
  • Tennessee issued guidance on the effect of certain CARES Act provisions. Tennessee doesn’t permit bonus depreciation but does conform to the reduction in class life from QIP to 15 years from 39 years. Tennessee also conforms to the exclusion from gross income for forgiveness of a PPP loan. For net business interest under IRC §163(j), Tennessee conforms to the federal provisions, including the CARES Act, for tax periods beginning after December 31, 2017, and before January 1, 2020. For tax years beginning on or after January 1, 2020, Tennessee decoupled from the TCJA’s amendment of IRC §163(j), such that the deduction for business interest expense won’t be limited. Tennessee doesn’t follow federal revisions concerning net operating loss carryforwards and carrybacks.
    • Tennessee DOR, CARES Act FAQs, July 29, 2020.

Texas

  • The state is granting an extension of up to 90 days past the original due date to pay the motor vehicle tax due on purchased motor vehicles. The extension does not apply to seller-financed motor vehicles sales.
    • Texas Comptroller COVID-19 News, March 23, 2020.
  • Texas automatically extended the due date for 2020 franchise tax reports and payments to July 15, 2020, for all franchise taxpayers. Taxpayers do not need to file any additional forms.
    • Texas Comptroller COVID-19 News, April 2, 2020.
  • Texas announced a 60-day extension of 2019 independently procured insurance excise tax filing and payment (upon request). Taxpayers granted the 60-day extension that need more time to file and pay the tax can apply for an additional 30-day extension on or before July 15.
    • Texas Comptroller COVID-19 News, April 1, 2020.

Utah

  • Utah’s individual income tax return due date is the same day as the federal individual income tax return due date; if the IRS changes the due date with reasons related to the outbreak, Utah also will extend its due date.
    • Utah DOR Notice, March 18, 2020.
  • Utah extended the individual income, corporate income and trust income tax filing and payment date to July 15 without penalties and interest. o Utah DOR Notice, March 20, 2020. o Utah Admin. R. § R861-1A-42, Waiver of Penalty and Interest for Reasonable Cause, amended March 26, 2020.
  • Utah released legislative clarification and validation of the state’s COVID-19 responses. The bill aligns corporate and individual return filing dates, extension dates and periods with federal dates and changes due dates for estimated corporate income tax payments. The bill also modifies the due date for an installment payment of the tax on deferred foreign income. Last, it creates a subtraction from adjusted gross income for certain distributions from a qualified retirement plan, codifying a longstanding practice of the Utah State Tax Commission that was favorable to taxpayers.
    • Utah H.B. 3003, generally effective retroactively to taxable years beginning on or after January 1, 2019.
  • For the 2020 tax year, Utah won’t tax funds received from grant programs created in response to COVID-19. Taxpayers may subtract these funds from their state income for corporate and personal income tax purposes. The subtraction applies to funds received under the COVID-19 Cultural Assistance Grant Program; the program authorizing grants to institutions of higher education for training and education to fill employment gaps or meet industry needs; and the COVID-19 Economic Recovery Programs.
    • Utah H.B. 5010, Laws 2020, Fifth Special Session, effective January 1, 2020.

Vermont

  • Vermont announced that the filing and payment due dates for the following Vermont taxes have been extended from April 15 to July 15, 2020: corporate income tax, personal income tax, homestead declarations and property tax claims and fiduciary income tax. This includes any tax year 2020 estimated payments that were due for these taxes on April 15, 2020. Furthermore, taxpayers who are unable to meet the March 25 and April 25 sales and use tax deadlines will not be charged any penalty or interest on these taxes for late submissions.
    • Vermont DOR Press Release, March 23, 2020.
  • Vermont is providing a waiver of penalties and interest for late submission of meals and rooms tax or sales/use tax for taxpayers unable to meet the March 25 and April 25 filing deadlines; and 2) allowing restaurants to sell alcoholic beverages as takeout service. o Governor’s Office Announcement, March 26, 2020. • Vermont updated its relief extensions to include the application of the July 15 extended deadline to personal income estimated taxes and the June 15 due date for Q2 estimated tax returns and payments.
    • Vermont DOR Notice, April 1, 2020
  • Vermont has extended the filing date for the International Fuel Tax Agreement first-quarter Vermont motor fuels tax return from April 30, 2020, to May 26, 2020, with full waiver of interest or penalties.
    • Vermont Department of Motor Vehicles Announcement, April 28, 2020.
  • Vermont updated its relief extensions to include the application of the July 15 extended deadline to personal, corporate, business/pass-through, fiduciary and estate estimated taxes originally due June 15, with full waiver of penalty and interest.
    • Vermont DOR Notice, April 1, 2020.
  • Vermont previously announced relief for estimated income taxes due April 15, 2020, as long as they were paid by July 15, 2020. The new announcement extends relief for any tax year 2020 estimated income tax payments due on April 15 and before July 15 to be payable by July 15 without any penalty or interest.
    • Vermont DOR Notice, May 19, 2020.
  • Vermont requires a nonresident temporarily living and working in the state to pay Vermont income taxes on the income earned while living and performing work in the state. This is true even if the individual is in Vermont because of the COVID-19 pandemic, and it applies regardless of whether the employer is located inside or outside of the state. For businesses that have remote workers located in Vermont only on a temporary basis, Vermont won’t require the business to change the employee’s withholding state.
    • Vermont DOR FAQs, June 15, 2020.

Virginia

  • Virginia is allowing sales and use tax dealers to request an extension of the February 2020 sales tax return due date from March 20 to April 20. The extension includes a waiver of any penalties, but interest will continue to accrue.
    • Virginia Tax Bulletin 20-3, March 19, 2020.
  • Virginia announced an income tax payment extension and waiver of late payment penalties for any income tax payments due from April 1 to June 1, which can be submitted to the Department of Taxation by June 1 without penalty. Interest will continue to accrue from the original due date. Taxes eligible for the payment extension and penalty waiver include individual, corporate and fiduciary income taxes, as well as any estimated income tax payments that are required to be paid to the department during this period. The announcement doesn’t provide a filing extension.
    • Virginia Tax Bulletin 20-4, March 20, 2020.
  • Virginia issued continuing clarification on its tax relief provisions. Income tax payments originally due from April 1 to June 1, 2020, can now be submitted to the Department of Taxation without the accrual of interest that would normally be required for late payments. For a taxpayer filing on extension, at least 90 percent of the total tax liability must be paid by June 1, 2020, for the interest waiver to apply. The interest waiver applies to any payment required to be made with a tax year 2019 individual, corporate or fiduciary income tax return, as well as any such payment required to be made with respect to an election to file on extension. In addition, the interest waiver applies to any individual, corporate or fiduciary estimated income tax payments required to be paid during the period from April 1 to June 1, 2020. The waiver also applies to payments associated with composite returns. Further, dealers who were granted an extension of the due date for the February 2020 sales tax return and payment due in March under Tax Bulletin 20-3 will receive a waiver of the interest that would have otherwise accrued for the late payment. The interest waiver applies only to such payments submitted to the department no later than April 20, 2020. This relief doesn’t apply to nonresident withholding tax or employer withholding of income tax.
    • Virginia Tax Bulletin 20-5, April 27, 2020.

Washington

  • The DOR will provide extensions for filing and payment for purposes of the business and occupation tax, as well as other taxes it administers, of 60 days for monthly filers and 30 days for quarterly and annual filers.
    • DOR News Release, March 19, 2020.
  • Washington amended several excise tax provisions dealing with liquor and marijuana licensees, which generally provide a penalty waiver retroactive to Feb. 29.
    • Washington Emergency Regulations §314-02-109 et al., effective March 27, 2020.
  • Washington will extend the business and occupation (B&O) tax returns to June 30 for the first-quarter return for quarterly filers, and annual filers may file their return by June 15, 2020.
    • Washington DOR Notice, April 8, 2020.
  • Washington will waive: 1) interest on outstanding balances until the termination of the COVID-19 State of Emergency or May 4, whichever occurs first; 2) the Business Licensing Service delinquency fee on late renewals of licenses expiring in February, March, and April; and 3) penalties for nonprofit applications and renewals for exempt property for the months of February through May. The DOR will also delay issuing new compliance assessments, tax warrants, notices of withhold and deliver, and revocations until mid-May. Estates filing a state and federal estate tax return can request an extension until July 15.
    • Washington DOR Notice, April 17, 2020
  • Washington has extended the waiver and suspension of laws and rules regarding tax penalties, interest, fees and due dates through the earlier of the termination of the COVID-19 state of emergency or May 31, 2020.
    • Governor’s Proclamation 20-20.2, May 5, 2020, extending Proclamations 20-05, 20-20 and 20-20.1, which were due to expire May 4, 2020.
  • Washington will exempt businesses receiving assistance from federal programs (including the PPP) to cope with the effects of the COVID-19 pandemic from B&O tax on these amounts. At the present time, no penalties or interest will accrue in relation to any tax that may be due on such receipts (pending future legislative action).
    • Washington DOR Tax Topics, May 12, 2020.
  • Washington extended the waiver or suspension of enforcement of interest and penalties on sales and use, excise, property and estate taxes, as well as business licensing provisions, for taxpayers adversely affected by COVID-19 until the earlier of the termination of the COVID-19 State of Emergency or August 1.
    • Governor’s Proclamation 20-20.5, July 2, 2020.
  • Washington extended the waiver and suspension of statutory restrictions concerning tribes’ use of fuel tax refunds for excise tax purposes due to COVID-19 until the earlier of the termination of the COVID-19 State of Emergency or August 1. This includes contractual provisions in agreements between the governor and an Indian tribe or tribes restricting the use of fuel tax refund monies to highway or transportation-related purposes and directing the Department of Health, the Washington State Military Department Emergency Management Division and other agencies to identify and provide appropriate personnel for conducting necessary and ongoing incident-related assessments.
    • Governor’s Proclamation 20-56.2, July 2, 2020.
  • Washington clarified that for taxpayers who are working with the DOR on a collection-related issue for sales and use, excise, property and estate tax purposes, the DOR will delay the issuance of tax warrants, notices of withhold and deliver and revocations until September 1.
    • Washington DOR Business Relief During COVID-19 Pandemic, July 15, 2020.

West Virginia

  • West Virginia is extending both the filing and payment deadlines for state income taxes until July 15 to match the federal relief.
  • The state also is waiving interest and penalties on property tax filings until May 1.
    • Gov. Jim Justice Executive Order No. 13-20, March 26, 2020.
  • The DOR issued clarifying guidance on the state’s tax relief for COVID-19: 1) the deadline to file 2019 annual income tax returns and pay 2020 estimated tax is extended to July 15; 2) the extension doesn’t apply to employer withholding tax returns and payments or any other tax; 3) the department will automatically provide the relief; 4) the failure to pay tax by July 15 will result in the accrual of penalties and interest; 5) taxpayers requesting an extension to file to October 15 must pay any liability by July 15 to avoid the interest and penalties; and 6) the penalty and interest for underpayment of the estimated tax will be calculated on the estimated payments due during the extended period.
    • West Virginia DOR Administrative Notice No. 2020-16, March 26, 2020.

Wisconsin

  • Wisconsin announced an extension to July 15, 2020, for corporate and individual income tax payments, estimated income tax payments and returns due April 15, 2020.
    • Wisconsin DOR Notice, March 21, 2020.
  • Wisconsin will permit small businesses to request an extension to file sales and use tax returns due March 31, 2020, until April 30, 2020, and due April 30, 2020, until June 1, 2020. The DOR will not assess late filing fees or penalties but interest will accrue by law, unless the legislature changes the law to allow the DOR to waive interest.
    • DOR Notice, March 27, 2020.
  • Wisconsin issued proposed guidance regarding filing tax extensions as a result of the COVID-19 pandemic. Federal extensions provided in IRS Notices 2020-18 and 2020-23 may be used for Wisconsin corporate income and personal income/franchise tax and pass-through withholding tax purposes. For returns that are due on or after April 1, 2020, and before July 15, 2020 (including estimated tax payments), regardless if it’s the original or extended due date, the due date is extended to July 15, 2020. Unpaid income and franchise taxes and pass-through withholding taxes due on or after April 1, 2020, and before July 15, 2020, won’t accrue interest or penalties until July 16, 2020. In addition, no underpayment interest will apply to any estimated tax payments due for the period of a return if either of the following apply: (1) the return has a taxable year ending December 31, 2019; or (2) the return is a fiscal-year or short-period return with an original or extended federal due date on or after April 1, 2020, and before July 15, 2020. Although contributions to a Wisconsin college savings account must be made by April 15, 2020, to qualify for the 2019 Wisconsin income tax return subtraction, the date for making contributions to an IRA is postponed to July 15, 2020. Taxpayers also may request a one-month extension to file a withholding deposit report (WT-6). Lastly, the payment from the federal CARES Act (P.L. 116-136) isn’t taxable for federal or Wisconsin income tax purposes, and the IRS won’t use a taxpayer’s federal economic impact payment to pay federal or state tax debts but will use it to pay past-due child support payments that the states have reported to the IRS.
    • Wisconsin DOR News for Tax Practitioners, April 10, 2020.
  • Wisconsin announced more filing and payment deadline extensions to conform with IRS Notice 2020-23. Estimated payments due on or after April 1, 2020, and before July 15, 2020 are extended to July 15, 2020. Underpayment interest on estimated payments won’t apply to income/franchise and pass-through withholding returns with a tax year ending on December 31, 2019, or returns that are due on or after April 1, 2020, and before July 15, 2020.
    • Wisconsin DOR Notice, April 13, 2020.
  • Wisconsin legislation to conform state tax law with federal coronavirus responses. The bill will exempt certain retirement account distributions from tax; permit deductions for certain charitable contributions; permit loan forgiveness on a tax-free basis under the federal small business loan program; and exclude from income student loan payments made by an employer to qualified employees. In addition, the bill grants the DOR authority to waive interest and penalties in cases where a taxpayer fails to timely remit taxes due to the pandemic.
    • A.B. 1038, effective April 15, 2020.

Wyoming

Wyoming announced plans to waive interest and penalties for severance taxes filed late through the end of June 2020 and that waivers for sales and use tax returns will be determined on a case-by-case basis.

  • Wyoming DOR Notice, April 13, 2020.

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