Alabama– 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– The CDTFA has announced that the extension of tax will be extended through July 31, 2020 and had extended the relief to business with less than $1 million in tax. Any taxpayer who may not qualify for the automatic extension may still request an extension if they are unable to file and pay timely. The CDFTA also announced it will allow taxpayers with less than $5 million in taxable annual sales to apply for a 12-month interest-free payment plan for up to $50,000 in sales and use tax liability. CDTFA offers interest free payment plan
On Thursday, April 2, 2020, governor Gavin Newsom proposed letting small businesses keep $50,000 in sales tax receipts for the next 12 months as a bridge loan. Approval would likely be required from the state Legislature which will be in recess until April 13th. Gov . Gavin Newsom Wants Sales Tax Relief for Businesses
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
Colorado– The Governor of Colorado issued an Executive Order extending the sales tax deadline from April 20, 2020 to May 20, 2020 and directs the Department of Revenue to waive penalties and interest that would otherwise accrue during this period.
However, the extension does not apply to self-collecting home-rule jurisdictions.
Connecticut– The Department of Revenue Service (DRS) has revised it’s COVID-19 guidance to allow sales and use tax and room occupancy tax return filing and payment extensions for small business tax payers only. Small business with $150,000 or less in annual sales tax and annual room occupancy tax liability qualify for an automatic extension of time to file and pay. In order to qualify, taxpayers must use the look back period of January 1, 2019 through December 31, 2019. Returns and payments due March 31, 2020 and April 30, 2020 are extended to May 31, 2020 for monthly sales tax and room occupancy tax files and will not be subject to any penalties or interest. DRS COVID-19 Response: FAQs
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
Chicago: The Due dates for February and March tax payments have been extended to April 30, 2020 for the following tax : Amusement tax (7510, 7510R 7511), Bottled Water tax (1904), Checkout Bag tax (2737), Ground Transportation tax (7595), Hotel Accommodations tax (7520, 7520S), Parking tax (7530, 7530V). and Restaurant tax (7525). No additional interest will accrue from 3/17/2020 through 4/30/2020 on late tax payments for the periods July 2019 through January 2020. Taxpayer relief due to COVID-19
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–March and April returns and payments previously due April 20, 2020 and May 20, 2020 have been extended to a June 30, 2020 deadline. Revenue Bulletin No, 20-012
The Department is temporarily suspending collection activity, however delinquency interest and penalty will continue to accrue as the statutory requirements on unpaid balances.
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– Filing and payment deadlines have been extended to July 15, 2020. New Tax Filing Deadlines
Massachusetts–This deadline has been extended further to include returns and payments for periods beginning February 1, 2020 through July 31, 2020 due by September 20, 2020. Additional filing and payment deadline extension for certain taxpayers
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 of Revenue released a new payment plan for business taxpayers who have deferred their sales, use and withholding taxes due to the coronavirus pandemic for both monthly and quarterly taxpayers. Returns must be filed by June 20, 2020 however payments from February through May are eligible to participate in the new installment plan. Once the returns are submitted the installment balances can be established and no additional documentation or contact with the state treasury is required to participate. Tax deadlines starting in July forward will continue as scheduled. Installment Payment option available for monthly and quarterly sales, use and withholding tax returns due on June 22, 2020
Michigan’s Department of treasury has issued a notice allowing businesses additional time to pay their Sales, Use and Withholding (SUW) taxes for payments due in March, April, and May. The Department will waive penalties and interest on deferred payments until June 20, 2020. Treasury: Business Taxpayers Can Make Sales, Use and Withholding Tax Payments in June
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– North Carolina’s Department of Revenue has expanded the COVID-19 tax penalty relief From March 15, 2020 to July 15, 2020 for sales and use tax penalties for failing to obtain a license, file a return, or to pay taxes. Taxpayers do not need to request a penalty waiver to qualify for relief. Department of Revenue Expands Penalty Relief for Taxpayers Affected by Coronavirus Disease 2019.
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 until June 1, 2020 for multiple different tax types including Sales and Use tax. Penalties and interest will not incur. SC News Release; SC Information Letter #20-4.
Texas– The comptroller is temporarily suspending the 60-day deadline for businesses to contest audit results which applies to both redetermination and refund hearings. However, if taxpayers are able to request redetermination during the 60-day deadline, the Comptroller’s Office can handle these requests. Tax Relief in the form of postponements on deadlines to remit payments related to existing payment plan agreements on a case-by-case basis is available. Postponement will only apply to existing payments plan agreements for periods prior to February 2020. Potential postponements will not extend or delay a taxpayer’s due dates for remitting or reporting tax collected by taxpayers on behalf of state and local governments.
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 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
Additional Extension: The department may grant extensions for tax due from March 12 through May 11. Interest will begin to accrue after the May 11th deadline. To request an extension, fill out the request form on the state website. Those who were previously granted an extension, you must resubmit a request after 8:00 AM April 20, 2020. Taxpayers May Request Extensions and Waivers
The Department of Revenue released that small businesses can request an extensions for sales and use tax returns due March 31, 2020 to April 30, 2020 and April 30, 2020 to June 1, 2020. Late filing fees and penalties will be waived however interest will accrue beginning on the due date at a lower rate of 12% of unpaid balances. Taxpayers must contact the department at DORTOBReturnAdjustment@wisconsin.gov after they receive the bill to request a reduction of the interest rate from 18%. The Department is combating the challenges small businesses are facing and allowing installation payment plans for amounts reported on returns but unpaid, relaxing collection activities on delinquent amounts due between March 27,2020 and July 15, 2020, and delaying the start of most new audits. Department of Revenue announces immediate help for small businesses.
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.