Alabama is waiving state sales tax late payment penalties for small retail businesses, whose monthly retail sales during the previous calendar year averaged $62,500 or less, and taxpayers currently registered with the Department of Revenue as engaging in NAICS Sector 72 business activities, including restaurants. The Department is also waiving state late payment penalties for lodgings tax liabilities from February, March and April.
The Alabama Department of Revenue released guidance extending relief to business who are unable to timely pay February, March, and April 2020 state sales tax liabilities. Taxpayers will receive waivers through June 1, 2020 for late payment penalties. The department has also decided they will waive penalties for small retail businesses sales tax liabilities through June 1, 2020. Commissioner Order.
California– California’s Department of Tax and Fee Administration has initiated emergency tax relief for businesses directly affected by COVID-19 offering a three-month extension to file and pay taxes including sales and use tax. Affected taxpayers are encouraged to apply online for relief from penalties and interest and request a filing extension online. Executive Order N-25-20; COVID 19 CDTFA Guidance
Governor Jared Polis directed the Colorado Department of Revenue to coordinate with local governments that choose to extend tax payment deadlines for property and sales and use tax.
The Department of Revenue will coordinate with local governments that choose to extend tax payment deadlines for property, sales, and use taxes during the crisis. CO COVID-19 Updates
Washington D.C.– Emergency registration was introduced to extend the deadline for sales tax due in February and March to defer payment until July 20, 2020, without facing fees, fine, penalties, or interest. OTR Tax Notice 2020-02
Florida– Sales and use taxes due in February may be paid by March 31, 2020.
Taxpayers who have been “Adversely affected” by CoVid19 and were unable to meet the March 20, 2020 due date, are eligible to have penalties and interest waived. For tax collected in March, due April 20, 2020, taxpayers affected will have an extension to April 30, 2020.
“Adversely affected taxpayer” means the business closed in compliance with state and local government orders and had no taxable sales transactions, business experience sales tax collection in March 2020 that are less than 75% of March 2019 sales tax collections, business was established after March 2020, or business registered with the Department to file quarterly. The state continues to encourage those who are able to file and pay on time to do so. Order of Emergency Waiver/Deviation (Order) #20-52-DOR-002.
Although the due dates for filing sales tax returns has remained, the FL DOR is willing to waive sales tax penalties for any business unable to meet their sales tax obligations for the upcoming due dates in light of Covid-19.
The Florida Department of Revenue will provide flexibility on deadlines for taxes due including corporate income taxes and sales taxes. Florida has created a new email to address questions and concerns at COVID19TAXHELP@FloridaRevenue.com.
Illinois– Eating and drinking establishments impacted by the COVID-19 outbreak qualify to have penalties and interest on late sales tax payments for liabilities under $75,000 in the calendar year 2019. Qualified taxpayers will not be charged penalties or interest for returns due for February, March, and April 2020. Payment will be due in four payment installments starting on May 20, 2020. Short-Term Relief from Penalties
Eating and drinking establishments that incur less than $75,000 in sales tax liabilities last year, will not be charged penalties and interest on payments due for March, April, and May made late. Qualified taxpayers must still file their sales tax return even if they cannot make the payment. The liabilities due for March, April, and May is required to be paid in four installments starting May 20 and extending through August 20. Informational Bulletin 2020-23
The City of Chicago, IL has announced that small to mid-size business that paid less than $75,000 in sales tax last year will get a two-month delay in sales tax payments. Businesses will still be required to file March, April, and May but will be allowed to withhold payment without penalty and interest. The payments must be made in four chunks spread from May 20th through August 20th.
Iowa– Penalty and Interest has been temporary suspended for property tax payments for now through April 16, 2020. Proclamation of Disaster Emergency
Indiana– Late property tax payments penalties have been waived for the May 11, 2020 due date for a period of 60 days. Waiver of Penalties for Delinquent Property Tax Payments
Kansas– Kansas Department of Revenue has updated the interest rates for underpayment and overpayment of taxes for the calendar year of 2020. Effective January 1, 2020, tax including sales and use tax will be 6% or 0.5% per month (unchanged from 2019). Penalty and Interest
Louisiana–The filing and payment deadline for February 2020 sales tax returns have been extended to May 20, 2020. No extension request is necessary. Taxpayers will not be able to utilize the E-file Parish site, and must submit paper returns to take advantage of this filing and payment relief. Revenue Information Bulletin No. 20-008
Maryland– The Comptroller of Maryland has delayed filing for business sales and use tax until June 1, 2020. The extension is valid for periods ending March, April, and May 2020. Sales Tax Not Due Today
Massachusetts–The Massachusetts department has announced that any returns due between the period of March 20, 2020 and May 31, 2020 are extended through June 20, 2020 for vendors whose cumulative sales and use tax liabilities in the 12-month period ending February 29, 2020 is less than $150,000. Penalties will be waived, however interest will continue to accrue. The extension to file returns and make payments does not apply to marketplace facilitators or vendors selling motor vehicles. 830 CMR 62C.16.2
Michigan–The Department Treasury is waiving penalty and interest for the late payment of sales and use tax or the late filing for the sales and use tax return due March 20, 2020. The waiver is in effect for 30 days and the return must be submitted by April 20, 2020. The waiver is not available to accelerated sales, use, or withholding tax filers. Notice: 30 Day Waiver For Penalty and Interest
Minnesota–The Minnesota Department of Revenue is granting a 30-day Sales and Use Tax grace period for businesses identified in Executive Order 20-04. During this time the department will not assess penalties or interest. Identified businesses with a monthly Sales and Use Tax payment due March 20, 2020, will have until April 20 to make that payment. These customers should still file their return by March 20. At this time, this grace period for penalty and interest is only for monthly filers and only for the March 20 payment. Identified businesses can request additional relief from penalty and interest for reasonable cause after April 20. MN Sales Tax Payment Extension 20-04
Mississippi–Mississippi has not extended the filing date for sales and use tax returns, but has delayed interest and penalties on any unpaid tax balances during the presidentially declared national emergency.
New York– The Governor of New York has issued an executive order expanding the abatement of late filing and payment penalties to allow abatement of interest on quarterly sales and use tax filings and remittance for March 20, 2020 due dates. (New York State Department of Taxation and Finance, N-20-1) Returns must be filed within 60 days of the due date for relief to apply. Taxpayers can visit the Department’s website for instructions on how to apply for relief. Promptax program participants for sales and use tax, sales tax vendors required to file monthly, or prepaid sales tax on fuel are not eligible. NY N-20-1
North Carolina– The Secretary of Revenue has agreed to waive penalties for failure to file a return, failure to pay tax when due, and penalties regarding information returns. The waiver applies only to returns due between the period of March 15 and March 31, 2020. The return and tax must be paid by April 15, 2020. NC Notice of Relief to Persons Affected by Coronavirus Disease
North Dakota– Taxpayers may request additional time if they believe will be unable to file a return or pay tax in a timely manner due to COVID-19 pandemic. ND COVID-19 Tax Guidance
Pennsylvania– The Department of Revenue is waiving penalties for businesses that are required to make Accelerated Sales Tax prepayments for the deadline of Friday, March 20 and waiving the requirement for April prepayments. PA Waiver of Penalties on Accelerated Sales Tax Prepayments
Rhode Island– The Division reminds businesses and other taxpayers, under Regulation 280-RICR 20-00-4 or the “Taxpayer Rights and Responsibilities”, they have the right to request penalty abatements where there is no negligence or intentional disregard of the law. Coronavirus Disease 2019 Information
South Carolina– All tax returns and tax payments due from April 1 through June 1 will not be due June 1, 2020 for multiple different tax types including Sales and Use tax. SC News Release; SC Information Letter #20-4
Texas– The Comptroller’s office is offering assistance in the form of short-term payment agreement and in most instances, waivers of penalties and interest for state and local sales taxes collected in February. TX COVID-19 News
Vermont– Vermont businesses that owe sales and use tax will not be charged penalty or interest on late submissions for due dates of March 25 and April 25. VT Department Press Release
Virginia– Businesses can request to defer the payment of state sales tax due March 20, 2020, for 30 days. When granted, the new deadline would be April 20, 2020, with penalties waived.
Businesses impacted by CoVID-19 can request to defer March 20, 2020 for 30 days. When granted, businesses will be expected to file no later than April 20, 2020. VA Tax Bulletin 20-3
Washington– Relief is available for those who request an extension, however the state is asking taxpayers continue to file their returns in they are able to do so. This applies to returns that are due and not already paid during the state of emergency, February 29, 2020 through the end of the state of emergency to be determined). Business Relief During CoVID-19 Pandemic
Wisconsin– Taxpayers may request a one-month extension to file excise tax and sales and use tax returns. Payment due dates are not extended. Interest will be imposed during the one-month extension period at a rate of 1%. Wisconsin Tax Return Due Dates and Payments
Disclaimer: Please note this is the information that is readily available at this time, it is subject to change so please consult your Withum tax advisor.