SALT Alert - State Reactions to COVID-19

More About | Tax | State & Local Tax | COVID-19

Although the April 15 deadline has passed, it is still important to monitor certain state deadlines and filing relief as several states have an income tax deadline that originally falls beyond April 15. Furthermore, states might provide additional guidance regarding the applicability of relief to estimated payments, fiscal year filers, etc.

Additionally, states continue to extend forms of relief for sales and use taxes, gross receipts taxes, etc.

DHG will continue to routinely update this guidance reflecting all relevant changes.

Updated April 16, 2020

State COVID-19 Relief Guidance
Alabama

In a press release on 3/23/2020, Alabama announced that the due date for income tax filings due 4/15/2020 is now 7/15/2020. This also applies to any income tax payments due on 4/15/2020, including estimated payments. Penalties and interest will be waived provided payment is made on or before 7/15/2020.

This applies to:

  • Corporations, individuals, trusts, estates, and other non-corporate filers.
  • Business privilege tax and financial institution excise tax.

In a Department of Revenue press release dated 3/19/2020, for sales tax filings, small retail businesses (defined by average monthly retail sales of $62,500 during the previous calendar year) and Section 72 businesses (including restaurants) may file their February, March, and April sales tax returns without payment of tax due. Late payment penalties will be waived through 6/1/2020.

Alaska

The state has introduced SB 241 which would extend the due date for all tax types. This bill has not yet passed. The DOR has informally stated that it follows the Federal due date regardless. However, no official guidance has been issued on this point.

Arizona

In a press release on 3/20/2020, Arizona announced that the due date for income tax filings due 4/15/2020 is now 7/15/2020. This also applies to any income tax payments due on 4/15/2020. Penalties and interest will be waived provided payment is made on or before 7/15/2020.

This applies to:

  • Individual, corporate, and fiduciary returns.

This relief does NOT apply to estimated payments.

Arkansas

Pursuant to a Notice issued by the Arkansas Department of Finance and Administration, the 4/15/2020 deadline to file returns and pay income taxes is extended to 7/15/2020 for the following taxpayers / returns types:

  • Individuals, S Corporations, Fiduciary and Estates, Partnerships, Composite Returns

Note - this relief:

  • does NOT apply to estimated payments.
  • is NOT provided to C Corporations.
California

Enhancing previous actions authorized by Executive Order N-25-20 the FTB announced in a 3/18/2020 press release that it is further extending the filing and payment deadline for all individuals and business entities until July 15, 2020.

This includes:

  • 2019 tax returns
  • 2019 tax return payments
  • 2020 1st and 2nd quarter estimate payments
  • 2020 LLC taxes and fees
  • 2020 Non-wage withholding payments

The FTB's website has offered additional clarity for fiscal year filers providing that filings and payments due between 3/15/2020 and 7/15/2020 are due 7/15/2020.

For sales tax, purposes, CDTFA is providing a three-month extension for a tax return or tax payment to any businesses filing a return for less than $1 million in tax. For the approximate 99.5% of business taxpayers below the $1 million threshold for their current California sales and use tax obligation, returns for the 1st Quarter 2020 will now be due on July 31, 2020. Qualifying taxpayers are not required to file a request for extension or request relief from penalty or interest. Taxpayers looking to make refund claims with CDTFA during this period will have an additional 60 days to file. Similarly, taxpayers seeking an appeal of a CDTFA tax determination to the Office of Tax Appeals will have 60 additional days to file the appropriate request.

Colorado

Pursuant to Executive Order 2020-10, income tax payments normally due on 4/15/2020 are now due on 7/15/2020. Estimated payments due on or after 4/15/2020 but on or before 6/15/2020 are now due 7/15/2020. This extension applies to all qualifying income tax payments.

The Colorado governor directed the Colorado Department of Revenue (CDOR) to coordinate with local governments that choose to extend tax payment deadlines for property tax, sales and use taxes and take whatever action they need to let them waive penalties and fees during the crisis.

Connecticut

In an update of relief dated 4/14/2020, the Connecticut Department of Revenue indicated an extension of filing and payment deadlines until 7/15/2020. The following tax returns / payments are included:

  • Individuals, trusts & estates, pass through entities, and unrelated business income tax returns.
  • Q1 and Q2 estimated payments are covered in the relief for the above entities.
  • Estate tax returns and gift tax returns are also included.

For sales tax purposes, taxpayers that have $150,000 or less in annual Sales Tax liability qualify for an automatic extension of time to file and pay. For monthly Sales Tax and Room Occupancy Tax filers: returns and payments due March 31, 2020, and April 30, 2020, are extended to May 31, 2020.

For quarterly Sales Tax and Room Occupancy Tax filers: returns and payments due April 30, 2020, are extended to May, 31, 2020.

Delaware

In a Delaware DOR release dated 3/23/2020, all income tax (corporate, individual, and fiduciary) returns which were due on 4/15/2020 are now due on 7/15/2020. Estimated income tax payments due 4/30/2020 are now due 7/15/2020.

District of Columbia

In a press release dated 3/23/2020, the District of Columbia announced that tax filings and the associated payments originally due on 4/15/2020 are now due on 7/15/2020. This relief in NOT provided for estimated taxes.

This applies to individual, fiduciary, partnership, and franchise tax returns.

OTR will automatically waive interest and penalties that would ordinarily be assessed for failure to timely pay sales and use tax due for periods ending on February 29, 2020 and March 31, 2020.

Florida

No official guidance regarding income tax as of the writing of this communication but the state has unofficially indicated that relief will be provided.

For sales tax purposes, taxpayers who have been adversely affected by COVID-19, have an extended due date to April 30, 2020, for sales and use tax, as well as other related taxes, collected in March. Taxpayers who were unable to meet the March 20 due date will have penalty and interest waived for taxes collected in February if the taxes are reported and remitted by March 31, 2020.

Georgia

In a press release on 3/23/2020, Governor Kemp announced that Georgia will conform to Federal due dates. Additional details were released on the DOR's website confirming the following:

  • The 7/15/2020 deadline applies to all income and net worth tax returns and payments which are due between 4/15/2020 and 7/15/2020.
  • The extension applies to estimated payments due between 4/15/2020 and 7/15/2020.
  • The statute of limitations to file for a refund or claim certain credits from a prior year is extended to 7/15/2020.
Hawaii

Pursuant to DOT Announcement No. 2020-01, all 2019 income tax returns and associated tax payments due from 4/20/2020 until 6/20/2020 are now due 7/20/2020. This relief does not apply to estimated tax payments.

Idaho

In an Idaho Tax Commission press release on 3/20/2020, it was announced that the state has extended all income tax deadlines to file and pay from 4/15/2020 to 6/15/2020. This applies to individuals and all business entities.

A subsequent release indicated the relief applies to Q1 and Q2 estimated payments.

Illinois

Pursuant to Informational Bulletin FY 2020-24, the filing deadline for Illinois income tax returns and their associated tax payments has been extended from 4/15/2020 to 7/15/2020. This applies to individuals, trusts, and corporations.

This relief does not apply to estimated tax payments.

For sales tax purposes, Qualified Taxpayers (i.e., operators of eating & drinking establishments that incurred a total sales tax liability of less than $75,000 in calendar year 2019) will be granted penalty & interest relief on late sales tax payments on Form ST-1 (Sales & Use Tax) & E911 Surcharge Returns for the February, March, & April 2020 reporting periods. Full payments must be made for liabilities beginning with May 2020, which is due on June 22, 2020.

Penalties and interest will be automatically waived; however, qualified taxpayers must still file their sales tax return even if they are unable to make a payment.

Indiana

In a DOR press release dated 3/19/2020, income tax filing and payment extensions were communicated.

  • Individual tax returns and payments originally due 4/15/2020 are now due 7/15/2020.
  • Corporate tax returns and payments originally due 4/15/2020 or 4/20/2020 are now due 7/15/2020.
  • Corporate tax returns and payments originally due 5/15/2020 are now due 8/17/2020.
  • These extensions apply to related estimated payments due during the same time period.

For sales / use tax purposes, subject to DOR approval, manufacturers who make donations of medicine, medical supplies, or other goods in the furtherance of fighting COVID-19 will not be subject to Indiana use tax on items donated. Further, groups/organizations that are not manufacturers, will not trigger use tax obligations on items donated if sales tax was not paid.

The DOR may waive any penalties and interest that are directly related to taxes if the due date for the underlying tax is extended in response to the COVID-19 pandemic, and such wavier shall continue for the duration of the extension.

Iowa

In a DOR press release dated 3/19/2020, Iowa extends the filing of numerous income tax returns and the associated payments which are due on or after 3/19/2020 and before 7/31/2020. These returns and payments are now due on 7/31/2020. The extension does not appear to apply to the payment of estimated taxes.

The following returns are included:

  • IA 1040, IA 1040C, IA 1041, IA 1120, IA 1120F, IA 1065, IA 1120S

For sales tax purposes, the Iowa Small Business Relief Program will provide relief to a LIMITED number of small business who apply for relief.

Applicants who are granted into the Small Business Relief Grant Program & Tax Deferral program will be granted a 60-day deferral to pay the tax. Note - Applicant must have a physical location in Iowa.

Kansas

Pursuant Executive Order 20-13 and Kansas DOR Notice 20-01, the filing and payment deadlines have been moved from 4/15/2020 to 7/15/2020 for the following tax types:

  • Individual income tax, fiduciary income tax, corporate income tax, and privilege tax

This also applies to fiscal year filers with a due date prior to 7/15/2020.

Kansas DOR Notice 20-02 provides for estimated payment relief on Q1 2020 estimated payments.

Kentucky

In a DOR news release dated 3/22/2020, income tax returns and tax payments due 4/15/2020 are now due 7/15/2020. Penalties will be waived but interest will still apply.

Louisiana

Pursuant to Revenue Information Bulletin 20-009 (3/23/2020), various income tax returns and related payments due between 4/15/2020 and 5/15/2020 are now due 7/15/2020. No relief is provided for payment of estimated taxes (see exception below).

This applies to individual returns, partnership returns, composite returns, fiduciary returns, and corporate returns.

Individual taxpayers are allowed to base their Q1 2020 and Q2 2020 estimated payments on 90 percent of the same payments made in 2019.

Pursuant to Revenue Information Bulletin 20-008 (3/19/2020), the February 2020 sales tax returns (and payments) originally due on 3/20/2020 are now due 5/20/2020. There is a similar extension for certain excise tax returns.

Maine

In a press release on 3/26/2020, Governor Mills announced that the state will extend the deadline for Maine income tax payments from 4/15/2020 to 7/15/2020. This applies to corporations, individuals, estates, and trusts. This extension includes any estimated payments due on 4/15/2020.

Maryland

In a Maryland Tax Alert dated 3/20/2020, the state announced extension of the deadline for all individual and business income tax returns from 4/15/2020 to 7/15/2020. This includes filing of returns as well as payment of related taxes. In addition, the due date for Q1 estimated payments is also extended to 7/15/2020.

It should be noted that Maryland also announced an extension until 6/1/2020 for various other tax filings with due dates during the months of March, April, and May 2020. This includes sales and use tax, withholding tax, admissions & amusement tax, as well as various excise taxes. If these returns are filed and paid by 6/1/2020 there will be a waiver of penalties and interest.

Massachusetts

Pursuant to TIR 20-4, the individual income tax deadline to file and pay will be extended from 4/15/2020 to 7/15/2020. This applies to personal income tax, estate and trust income tax, and income tax due with a partnership composite return. The TIR does not mention estimated payments.

TIR 20-4 also states that the Commissioner does not have the authority to delay due dates for corporate excise tax filings and payments. However, the Commissioner will waive late-file and late-pay penalties for returns / payments due on 4/15/2020 provided the returns are filed and payments are made by 7/15/2020. Interest will still apply.

With regards to sales tax, for vendors with cumulative liability for sales and use tax, including local option, under $150,000 in the 12–month period ending February 29, 2020 (i.e., for tax collected through January 31, 2020), due dates for the filing of returns and making payments for sales, use, and meals taxes for February, March and April returns have been extended to June 20, 2020.  For larger meals tax vendors that do not meet the $150,000 threshold, there will be automatic penalty waivers for February, March and April returns filed by June 20, 2020, but interest will still accrue. The relief described in this section is not available to marijuana retailers, marketplace facilitators or motor vehicle vendors. Penalty relief for larger sales tax vendors will be considered on a case-by-case basis.

Michigan

Pursuant to Executive Order No. 2020-26, Michigan has granted the following extensions:

  • Annual state income tax returns and payments due 4/15/2020 are now due 7/15/2020.
  • Annual state income tax returns and payments due 4/30/2020 are now due 7/31/2020.
  • Estimated tax payments due 4/15/2020 are now due 7/15/2020.

Department of Treasury Notice dated 3/17/2020 provides that there will be a waiver of penalties and interest for the late filing and payment of tax in regards to sales, use, or withholding taxes due on 3/20/2020 as long as the returns are filed and tax is paid by 4/20/2020. This does not apply to accelerated sales, use, or withholding tax filers.

Minnesota

In a 3/23/2020 press release, the DOR announced that for individual income tax purposes, taxpayers have until 7/15/2020 to file returns without penalties or interest. This extension of time does not apply to estimated payments.

Other income tax filers are currently being evaluated but are not currently extended or granted any relief.

Pursuant to the Notice of COVID-19 Response (3/18/2020), the state offers a sales and use tax grace period for businesses identified in Executive Order 20-04.

Mississippi

Pursuant to Mississippi Notice 2020-01 (3/23/2020), the 4/15/2020 deadline for individual and corporate income taxes is extended to 5/15/2020. This also applies to the first quarter estimated payment.

Missouri

In a press release dated 3/21/2020, Missouri announced that the deadline to file and pay corporate and individual income taxes has been extended from 4/15/2020 to 7/15/2020. This relief also applies to estimated payments which are due on 4/15/2020.

Montana

In a 3/20/2020 press release, Montana announced it is extending its individual income tax deadline to file and pay until 7/15/2020. This extension also applies to first quarter estimated payments. The state has announced they will be lenient in waiving penalties and interest.

Nebraska

In a press release on 3/23/2020, Governor Ricketts announced that the state will allow an extension of all income tax payments originally due on 4/15/2020. The extension is until 7/15/2020 and applies to 2019 return payments as well as 2020 estimated payments due 4/15/2020.

New Hampshire

Pursuant to Technical Information Release 2020-001 (3/30/2020), New Hampshire will not be extending the deadline for all business taxpayers and interest & dividends taxpayers. However, taxpayers that pay an amount equal to their 2018 liability of these respective taxes no later than 4/15/2020 will be granted an automatic 7-month extension free of penalties and interest on any additional amounts due with the return. Taxpayers may also base their 2020 estimated tax payments on their 2018 or 2019 tax liability.

An extension of time until 6/15/2020 is provided to taxpayers whose business tax liability was $50,000 or less and interest & dividends taxpayers whose 2018 liability was $10,000 or less.

New Jersey

On 4/14/2020 Governor Murphy signed the COVID-19 Fiscal Mitigation Act into law. The law extends the filing and payment deadline for individuals, partnerships and corporations until 7/15/2020. This relief is also provided for Q 1 estimated payments.

New Mexico

Pursuant to a New Mexico TRD Bulletin dated 3/25/2020, corporate, individual, and fiduciary income tax returns and payments due between 4/15/2020 and 7/15/2020 may be submitted without penalties and interest no later than 7/15/2020.

Relief also applies to estimated payments due during the same period except only relief from penalties applies. Interest will still apply.

New York

Pursuant to New York Department of Taxation and Finance Important Notice N-20-2, 2019 returns due on 4/15/2020 including related payments of tax and installments of tax for 2020 will not be subject to any penalties or interest if filed and paid by 7/15/2020.

Sales tax payments and returns were due March 20, 2020; however, penalty and interest may be waived for quarterly and annual filers who were unable to file or pay on time due to COVID-19

North Carolina

In a DOR press release dated 3/21/2020 and DOR Important Notice published 3/23/2020, the state announced that income and franchise tax returns originally due 4/15/2020 are now due 7/15/2020. This applies to returns for individuals, corporations, partnerships, trusts, and estates. While taxpayers will receive a waiver of penalties, interest will still apply.

Pursuant to NC DOR Important Notice dated 3/17/2020 and Executive Order 116, the state waives penalties for failure to file a return or pay a tax that is due between 3/15/2020 and 3/31/2020. The penalty waiver only applies if the applicable returns are filed and tax paid by 4/15/2020.

North Dakota

In a press release dated 3/24/2020, North Dakota announced that individuals or businesses unable to file an income tax return or pay the income tax by 4/15/2020, can file and pay by 7/15/2020 without incurring penalties and interest.

Ohio

The Ohio Department of Taxation announced on 3/27/2020 that the deadline to file and pay state income tax has been extended from 4/15/2020 to 7/15/2020. This extension also applies to most quarterly estimated tax payments due 4/15/2020 and 6/15/2020. Pursuant to HB 197, the DOT also has the authority to extend Commercial Activity Tax filings / payments. Additional detail from the DOT is forthcoming.

Oklahoma

Pursuant to an Oklahoma Tax Commission website release, the due date for income tax returns and the related payment of tax is extended from 4/15/2020 to 7/15/2020. This extension also applies to estimated tax payments due 4/15/2020.

Oregon

Pursuant to a 3/25/2020 press release, Oregon has extended the following deadlines:

  • Individual income tax returns and payments due on 4/15/2020 are now due on 7/15/2020.
  • Corporate income / excise tax returns and payments due on 5/15/2020 are now due on 7/15/2020.

Estimated payments are not extended for either tax type.

Pennsylvania

Governor Wolf Signed Act 10 of 2020 into law which provides the following extensions:

  • Declarations and payments of estimated personal income tax are now due 7/15/2020.
  • Individual income tax returns are now due 7/15/2020.
  • Partnership and S Corporation informational returns are now due 7/15/2020.
  • Corporate returns due 5/15/2020 are now due 8/14/2020.
  • Non-resident withholding and partnership corporate net income tax withholding is now due 7/15/2020.
Rhode Island

Pursuant to DOT Advisory 2020-11, the deadline to file returns and pay the associated taxes typically due 4/15/2020 has been extended to 7/15/2020. This includes income tax filings for businesses, individuals, estates, and trusts. This also includes estimated tax payments due 4/15/2020.

The advisory notes numerous other tax types for which relief / extensions are provided.

South Carolina

Pursuant to SC Information Letter 20-4, South Carolina is conforming to Federal income tax relief. Income tax returns and related tax payments due on 4/15/2020 are now due on 7/15/2020. This applies to estimated payments due on 4/15/2020.

The previously announced extension of 6/1/2020 still applies to sales and use taxes, and other taxes administered by the DOR.

Tennessee

Pursuant to TN DOR Notice 20-05, the state has extended the due date for filing and paying franchise and excise tax from 4/15/2020 to 7/15/2020. This applies to estimated payments due on 4/15/2020.

Pursuant to TN DOR Notice 20-06 the state has extended the due date for filing and paying the Hall tax from 4/15/2020 to 7/15/2020.

Texas

Pursuant to the Texas Comptroller website, the 5/15/2020 Texas Franchise Tax deadline is automatically extended to 7/15/2020.

Utah

Pursuant to the Utah Tax Commission website, 2019 income tax returns and payments for individuals are due 7/15/2020. Additionally, late filed 2019 income tax returns for corporations and pass-through entities will receive a waiver of penalties and interest if filed and paid by 7/15/2020. Estimated payments are not specifically mentioned.

Vermont

Pursuant to a Vermont DOT press release on 3/23/2020, the deadline for income taxes (personal, corporate, and fiduciary) has been extended to 7/15/2020. This extension applies to both filing and payment. The same relief is also provided to estimated taxes due 4/15/2020.

Pursuant to the Vermont DOT website, businesses that are unable to meet the March 25 and April 25 sales tax filing deadlines will not be charged any penalty or interest for late submissions. Business who can meet the deadlines for filing and payment should continue to do so.

Virginia

Pursuant to Virginia Tax Bulletin 20-4, income tax payments due between 4/1/2020 and 6/1/2020, can be remitted to the state at any time on or before 6/1/2020. Virginia will waive penalties provided the tax is paid on or before 6/1/2020. This is not an extension of time to file, rather an extension to pay. Furthermore, interest is not waived and will accrue from the original due date.

In a 3/19/2020 press briefing, Governor Northam announced that businesses affected by COVD-19 can request deferral of payment of state sales tax due 3/20/2020. Penalties will be waived provided the returns are filed and taxes are paid no later than 4/20/2020.

Washington

Taxpayers may request an extension of time to file and pay tax returns and/or request penalty waivers if affected by COVID-19.

  • Monthly filers: Request an extension for paying tax returns (even if the request is after the due date) by sending a secure email in your My DOR account or by calling Revenue’s customer service at 360-705-6705, Monday through Friday 8 a.m. to 5 p.m.
  • Quarterly filers: The Quarter 1, 2020 return is now due June 30, 2020
  • Annual filers: The Annual 2019 return is now due June 15, 2020
West Virginia

In a 3/25/2020 press conference, Governor Justice announced the state will extend the income tax filing and payment deadline to 7/15/2020. As of the writing of this communication, official details have not been released by the West Virginia State Tax Department.

Wisconsin

In a press release dated 3/21/2020, the DOR announced that all income tax returns, payments, and estimated payments due 4/15/2020 are now due 7/15/2020.

Small businesses can immediately request an extension to file sales and use tax returns due March 31, 2020 until April 30, 2020 and due April 30, 2020 until June 1, 2020.Other elements related to this important sales tax change are as follows:

  • DOR will not assess late filing fees or penalties if sales/use tax returns are filed by April 30 or June 1
  • By law, payments are due March 31 and April 30; 12% interest will accrue beginning on the due date, unless the legislature changes the law to allow the DOR to waive interest
  • Send your request to DORRegistration@wisconsin.gov

DHG will continue to monitor the status of relief provided by the various states and routinely update this guidance.