State & Local Tax Impacts of COVID-19 for Mississippi

Thoughtware Alert Published: Dec 11, 2020
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Information current as of December 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.

Information Specific to 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.
  • Mississippi legislation provides tax-exempt coronavirus relief monies to resident businesses with a permanent place of business located in the state for individual income and corporate income tax purposes. The Mississippi COVID-19 Relief Payment Fund and Back to Business Mississippi Grant Fund will be created to provide nontaxable funds for payments to eligible taxpayers. The payment amount won’t be reduced by $2,000 for any direct payment received, and the payment is specifically to compensate the businesses for initial compliance with the Governor’s State of Emergency COVID-19 Proclamation issued on March 14. Eligible expenses for which the grants and funds are received can’t be itemized as tax deductions. 
    • Mississippi S.B. 3053, Laws 2020, effective August 11, 2020 (without signature).
  • Mississippi announced it will end the suspension of the accrual of penalty and interest on new assessments and prior liabilities that went into effect on March 26, 2020, in response to the coronavirus pandemic. The state won’t assess penalty and interest for the period of suspension and will only charge penalty and interest effective August 20, 2020. 
    • Mississippi DOR Notice, September 1, 2020.
  • Mississippi legislation adds additional NAICS codes to the definition of “eligible taxpayer” for its $2,000 state COVID-19 relief payments.  
    • Mississippi H.B. 1811, Laws 2020, effective October 9, 2020. This amends prior legislation contained in S.B. 2772 and S.B. 3053, Laws 2020.

For more information, reach out to your BKD Trusted Advisor or use the Contact Us form below.

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