In response to the new coronavirus (COVID-19), the Treasury, IRS and federal government have announced several changes to the tax filing season and coronavirus relief and stimulus packages. Here is an overview of what you need to know.
Federal tax updates (updated 8/13/20)
On Aug. 8, 2020, President Trump signed four executive orders related to coronavirus relief. The four executive orders are intended to deliver relief through a range of measures, including expanded unemployment insurance, a payroll tax deferment, student loan relief, and a moratorium on evictions.
The PPP Flexibility Act
On June 5, the President signed the PPP Flexibility Act, bringing borrowers some latitude when it comes to how and when they use Paycheck Protection Program (PPP) funds. The below chart explains the main changes:
|PPP loan under the CARES Act||PPP loan under the PPP Flexibility Act|
|Loan maturity on amounts not forgiven – two years.||Loan maturity on amounts not forgiven – five years (for loans after June 5, 2020). Loan maturity for loans made before June 5, 2020, remains two years. However, borrowers and lenders may agree to extend the period to five years. Loans are deemed made for this purpose on the date the SBA assigned a loan number to the PPP loan.|
|Borrowers can defer principal and interest payments for six months (interest accrues).||Borrowers who apply for forgiveness within 10 months after the last day of the 24-week forgiveness covered period can defer principal and interest payments until SBA pays the forgiveness amount to the lender or tells the lender that the borrower is ineligible for forgiveness. Borrowers who do not apply for forgiveness must begin making payments 10 months after the earlier of the end of the last day of the 24-week covered period or Dec. 31, 2020.|
|Not allowed to defer employer’s 6.2% share of 2020 Social Security tax if PPP loan forgiven.||Allowed to defer employer’s 6.2% share of 2020 Social Security tax if PPP loan forgiven.|
|Covered Period – earlier of eight weeks from loan origination or June 30, 2020, to incur costs eligible for forgiveness.||Loan Forgiveness Covered Period – earlier of 24 weeks from the date the borrower received the PPP funds or Dec. 31, 2020. If a borrower’s loan was made before June 5, 2020, the borrower can elect to use the eight-week covered period instead of the 24-week period.|
|No more than 25% of the loan forgiveness amount may be attributable to non-payroll costs (interest, rent, utilities).||No more than 40% of the loan forgiveness amount may be attributable to eligible non-payroll costs (mortgage interest, rent, utilities).|
|Borrower can avoid a reduction in forgiveness if FTE headcount reduction or salary / wage reduction are restored to the Feb. 15, 2020, levels by June 30, 2020.||Borrower can avoid a reduction in forgiveness if FTE headcount reduction or salary / wage reduction are restored to the Feb. 15, 2020 levels by the earlier of (i) the date the borrower submits the application for loan forgiveness or (ii) Dec. 31, 2020.|
|Exemption Based on Employee Availability – Between Feb. 15, 2020, and Dec. 31, 2020, loan forgiveness won’t be reduced when the borrower experiences a loss in FTEs if the borrower is able to document either of the following:
1) an inability to rehire individuals who were employees of the borrower on Feb. 15, 2020, and an inability to hire similarly qualified employees for unfilled positions on or before Dec. 31, 2020.
2) an inability to return to the same level of business activity that was operated before Feb. 15, 2020, due to compliance with HHS, CDC, or OSHA requirements between March 1, 2020, and Dec. 31, 2020, related to the maintenance of standards for sanitation, social distancing or any other worker or customer safety requirement related to COVID–19.
For more resources as well as a PPP loan forgiveness calculator, visit Intuit® Aid Assist, a free service for everyone that helps U.S.-based businesses, self-employed, contractors, freelancers, and gig workers understand different business relief programs.
The Coronavirus Aid, Relief and Economic Security (CARES) Act
On Friday, March 27, 2020, the President signed the Coronavirus Aid, Relief and Economic Security (CARES) Act — a $2 trillion stimulus package that will provide financial relief to individuals, families and businesses — into law. The 2020 coronavirus stimulus package will deliver relief through a range of measures, including an advanced tax rebate for taxpayers.
Stimulus checks for individuals and joint taxpayers. Stimulus checks — up to $1,200 for individuals, $2,400 for joint taxpayers and an additional $500 for each qualifying child — will be based on information from taxpayers’ most recent tax filings, either 2019 or 2018 if they have not yet filed this season. However, the amount paid now will be reconciled on next year’s tax return based on the taxpayer’s 2020 situation. If taxpayers have an adjusted gross income (AGI) of up to $75,000 ($150,000 married filing jointly), they should be eligible for the full amount of the recovery rebate. The stimulus check rebate completely phases out at $99,000 for single taxpayers, $146,500 for heads of household and $198,000 for joint filers. The stimulus check will be paid this year based on information from your most recent tax return and will be reconciled in tax year 2020 to ensure you received the correct rebate amount. The CARES Act also allows the government to leverage the direct deposit information in taxpayers’ tax year 2019 or 2018 tax return to deposit these stimulus funds electronically into their accounts. According to the Tax Policy Center, approximately 90% of Americans will be eligible to receive full or partial payments through the CARES Act. Taxpayers can check the status of their payment with the IRS “Get My Payment” tool.
Penalty waived for early retirement withdrawal. If your clients need to take money out of their retirement plans, keep in mind that the 10% early withdrawal penalty would be waived on up to $100K of retirement funds withdrawn. Additionally, income attributable to such distributions would be subject to tax over three years, and your client may recontribute the funds to an eligible retirement plan within three years without regard to that year’s cap on contributions.
Student loan payment relief. Under the CARES Act, employers can still make student loan payments on behalf of their employees on a tax-free basis, up to $5,250 annually. This means the loan payments would be excluded from the employee’s income. The provision is applicable on loan payments an employer makes from the day the bill was signed into law (March 27, 2020) through Jan. 21, 2021.
For more information about these individual provisions, read “CARES Act: Tax tips and planning for your individual clients.”
Increase in unemployment payments. Unemployment payments will be increased by $600 weekly for four months through July 31, and the bill also includes those who were previously not eligible for unemployment, including part-time employees, freelancers, independent contractors, gig workers, and the self-employed.
Delay of Social Security payroll tax payment for employers. Employers, including the self-employed, can delay the payment of the employer portion of the Social Security payroll tax for the remainder of the year and pay back the liability over the next two years.
Financial assistance provided for eligible non-profits and self-employed individuals. The Small Business Administration’s loan program is now accessible to more businesses and has an increased cap on loans. The Act provides $349 billion for the Small Business Administration to distribute through a new loan program titled the Paycheck Protection Program (PPP), making non-profits, self-employed individuals and contractors eligible to receive assistance.
The Federal Reserve lending program will also receive $454 billion in support. Loans from this fund will be for no longer than five years and will be aimed at aiding non-profits and businesses with around 500 to 10,000 employees with the goal of retaining at least 90% of their workforce with full compensation and benefits.
For more information about these loans, read “Loan packages and small business relief due to coronavirus.”
The tax provisions in the CARES Act haven’t gotten as much attention as stimulus checks, loans and payroll support. For your business clients, the CARES Act retroactively relaxes limitations of operating losses, interest expenses, asset depreciation, AMT credits and individual losses. To find out more, read “5 important tax provisions in the CARES Act.”
The 2019 tax filing deadline is July 15, 2020
The Treasury and IRS have announced that they will extend the 2019 tax filing deadline to July 15, 2020. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax. Taxpayers who owe money can defer federal tax payments, interest free and penalty free until July 15. Taxpayers can defer tax year 2019 federal tax payments regardless of the amount owed. The IRS expects to continue to process refunds as normal. The IRS typically issues nine out of 10 tax refunds within 21 days or less from acceptance with e-file and direct deposit – the fastest way to get a refund.
- Do I need to file an extension to file past April 15? No, you do not need to take any action for your clients. The July 15 extension applies to all taxpayers automatically.
- Will the extension of the tax deadline delay my client’s tax refund? No, the IRS expects to continue to process refunds as normal but encourages all taxpayers to file now.
- Do my clients have more time to contribute to their IRAs? Yes, taxpayers now have until July 15 to make a 2019 contribution to IRAs for 2019.
- Will the deadlines for state taxes also be extended? A majority of states are conforming to the new July 15 tax deadline. However, some states have different deadlines and guidance. Please see the updated list of tax guidance and information by state below.
The extension of the federal tax filing deadline also applies to tax payments. Taxpayers who owe money can defer federal tax payments, interest free and penalty free until July 15. This deferment also applies to tax year 2020 estimated tax payments previously due on April 15, 2020 and June 15, 2020.
- Who qualifies for the extended payment deadline? According to the Secretary of Treasury, anyone with a Federal Tax Payment related to their 2019 taxes and their tax year 2020 estimated tax payments due April 15, 2020, and June 15, 2020, can defer their tax payment, free of penalties and interest, until July 15 for purposes of the relief.
- What do I do if I already filed my client’s taxes, and they scheduled their payment for April 15? If your client has already filed and scheduled their payment for April 15, they will need to cancel their payment and reschedule it. Changes to payments need to be made no later than 11:59 p.m. ET two business days prior to the scheduled payment date.
- Does this extension apply to 2020 quarterly estimated tax payments? Tax year 2020 estimated tax payments previously due on April 15, 2020 and June 15, 2020. are postponed from April 15 to July 15, 2020.
- What if my client needs more time past the July 15 deadline to pay? If your client needs additional time beyond July 15 to file, you will need to file an extension. An extension will still give you until October 15, 2020, to file, but your client will need to pay any taxes owed by July 15 or be subject to penalties and interest.
The Families First Coronavirus Response Act (H.R. 6201)
On Wednesday, March 18, President Trump signed into law the Families First Coronavirus Response Act, or H.R. 6201, which includes relief for individuals, self-employed and businesses.
Relief for individual taxpayers. Eligible employees impacted by COVID-19 may receive paid sick and emergency sick leave.
- Emergency Sick Leave: Employees who were required to be quarantined, took care of a family member who was required to be quarantined, or had to care for your child due to school or daycare closures may be able to take 12 weeks job-protected leave under FMLA.
- Paid Sick Leave: Employees who were quarantined or seeking care for COVID-19 may receive two weeks paid sick leave at full pay and two-thirds pay to care for a family member or child.
Relief for self-employed and small businesses. The Families First Coronavirus Response First Act provides relief in the form of refundable tax credits for sick leave and family leave for eligible self-employed and small business owners.
- Self-Employed Tax Credit for Sick Leave: Self-employed individuals may be eligible for a refundable tax credit equivalent to a qualified sick leave amount. Qualified sick leave is based on average daily self-employment income.
- Self-Employed Tax Credit for Family Leave: Eligible self-employed individuals may be eligible for a refundable tax credit equal to 100 percent of a qualified family leave equivalent amount.
- Small Business Tax Credit for Paid Sick Leave: Small business owners who paid sick leave wages to employees may be eligible for a refundable tax credit equal to 100 percent of qualified sick leave paid.
- Small Business Tax Credit for Paid Family Leave: Small business owners who paid qualified family leave wages to employees may be eligible for a refundable tax credit equal to 100 percent of qualified family leave wages paid.
The IRS is expected to issue additional guidance on the COVID-19 tax relief.
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- The state of Alabama announced that state income tax filing due date is extended to July 15, 2020. Taxpayers can also defer state income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts, estates, corporations and other non-corporate tax filers. The emergency proclamation can be found here.
- Other taxes included in the deadline extension are corporate income tax, the Financial Institution Excise Tax (FIET), and the Business Privilege Tax (BPT).
- Taxpayers do not need to file additional forms to qualify for this automatic state tax filing/payment relief. Individual taxpayers who need additional time to file beyond the July 15 deadline can request a filing extension through usual methods.
- By separate order, the due date is extended for pass-through entities to file composite returns and make composite payments on behalf of their non-resident members.
- Other assistance may be available on a case-by-case basis to individuals and businesses that cannot file their tax returns on time due to the COVID-19 by contacting the Department
- The Department encourages all taxpayers to conduct their business online with My Alabama Taxes (MAT) to file and pay taxes; or call 334-242-1170 to receive additional assistance.
- The Arizona Department of Revenue announced that it moved the deadline for filing and paying state income taxes to July 15, 2020. Taxpayers filing state returns or submitting paying after the previous April 15 deadline will not be assessed late filing, late payment penalties or interest.
- Taxpayers who need more time beyond July 15 to file state income tax should consider filing for an extension by submitting Arizona Form 204 by July 15 if they have not already received a federal extension from the IRS.
- This extended deadline includes individual, corporate and fiduciary tax returns.
- For more information, go to Arizona General Tax Notice (GTN 20-1).
- Announced the Arkansas state tax deadline for individual filers including penalties and interest will be extended to July 15, 2020.
- This extension includes 2019 returns of Subchapter S Corporations, fiduciaries and estates, partnerships and composite returns.
- Corporate tax filers and estimated payment deadlines will remain the same, April 15, 2020.
- The FTB is postponing until July 15, 2020 the filing and payment deadlines for all individuals and business entities for:
- 2019 tax returns
- 2019 tax return payments
- 2020 1st and 2nd quarter estimated payments
- 2020 LLC taxes and fees
- 2020 Non-wage withholding payments
For a full list of dates for individuals and businesses go to: FTB
- The Department of Revenue (DOR) extended the income tax payment deadline for all Colorado taxpayers until July 15, 2020, without penalty or interest regardless of the amount.
- All income tax returns that were required to be filed by April 15, 2020 are granted a six-month extension, and are due on or before October 15, 2020.
- The state is granting an extended deadline for taxpayers who are required to make estimated income tax payments for the 2020 tax year. Both first and second quarter estimated payment are now due by July 15, 2020, without penalty.
- DOR will coordinate with local governments that choose to extend tax payment deadlines for property, sales and use taxes. To read the executive order, click here.
- The Connecticut Department of Revenue announced an extended deadline for individual state income tax payer return to July 15, 2020.
- First and second quarterly income taxes for tax year 2020 have been extended to July 15, 2020.
- There is an extension for certain business taxes by at least 30 days (dates vary). In addition, payments associated with these returns are also extended to the corresponding due date in June.
- See FAQs for further information on tax deadlines and payment relief.
- The Delaware Department of Revenue announced all final corporate income tax returns are due on the date of the corresponding federal return. Corporations may request an additional extension of time to file from the IRS, and Delaware will grant the same extension, if a copy of the federal extension request is included with the Delaware final corporate return when filed.
- Personal income tax returns due on April 30, 2020 will now be due on July 15, 2020.
- Estimated personal income tax payments due on April 30, 2020 are extended to July 15, 2020. Second quarter payments remain due on June 15, 2020.
- If a taxpayer needs additional time beyond the extended due date, they may request an extension through Revenue’s online system. This will provide an automatic extension of time to file to October 15, 2020.
- An extension only extends the due date for filing, not for payment. The payment deadline will be July 15, 2020, and penalties and interest on underpayments will be calculated from that date.
- Additional information on due dates, or other questions around taxes are available here.
District of Columbia
- D.C. announced that the deadline for taxpayers to file and pay their 2019 District of Columbia individual and fiduciary income tax returns (D-40, D-41, and D-40B), partnership tax returns (D-65), and franchise tax returns (D-20, D-30) is extended to July 15, 2020.
- The Office of Tax and Revenue (OTR) encourages taxpayers who are able to file their returns electronically to do so.
- The Florida Department of Revenue extended certain filing deadlines for Florida businesses. This addresses February and March reporting periods for the following taxes and fees:
- Sales and use tax, including discretionary sales surtax
- Tourist development tax
- Solid waste fees, including new tire fee, lead-acid battery fee, dry-cleaning gross receipts, and rental car surcharge
- Prepaid wireless E911 fees
- The Department has established COVID-19 FAQs and a dedicated team to address tax-related questions via email at COVID19TAXHELP@FloridaRevenue.com.
- The Georgia Department of Revenue is automatically extending the 2019 income tax filing and payment deadline to July 15, 2020, without penalties or interest.
- This includes state estimated income tax payments due on April 15, 2020, for the taxpayer’s 2020 taxable year.
- No extension is provided for the filing, payment, or deposit of any other type of state tax (including employee withholding and sales tax) or for filing of any state information returns.
- The Hawaii Department of Taxation is extending 2019 state income tax filing and payments for the following:
- Individual and Corporate Income tax returns for tax year 2019 due from April 20, 2020, to June 20, 2020, are extended to July 20, 2020.
- Taxpayers who are entitled to a refund or pay the 2019 Income tax due by July 20, 2020 receive an automatic extension to file the associated return by October 20, 2020.
- Action is not needed by Income taxpayers to participate in this tax relief program.
- Hawaii residents can file the Hawaii Resident Income tax for free on-line at hitax.hawaii.gov.
- Filing and payment dates for all non-Income taxes (Withholding, General Excise, Transient Accommodations, etc.) are unchanged.
- The Idaho State Tax Commission extended 2019 Idaho income tax filing and payment deadlines from April 15, 2020, to June 15, 2020. The extension applies to all taxpayers – including individuals, businesses, and entities – regardless of the amount owed. Penalty and interest won’t apply if taxpayers file their return and pay the income tax they owe by June 15.
- The deadline to apply for property tax relief programs has been extended from April 15 to June 15, 2020. The programs include:
- The Illinois Department of Revenue (IDOR) extended state income tax returns and is giving penalty relief from April 15, 2020, to July 15, 2020.
- The 2019 income tax filing and payment deadlines for all taxpayers who file and pay their Illinois income taxes on April 15, 2020, are automatically extended until July 15, 2020.
- This relief applies to all individual returns, trusts, and corporations and is automatic. Taxpayers do not need to file any additional forms or call IDOR to qualify.
- Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020. You will automatically avoid interest and penalties on the taxes paid by July 15, 2020.
- Taxpayers who have already filed a return can check the status of their return or make payments at mytax.illinois.gov.
- This does NOT impact the first and second installments of estimated payments for 2020 taxes that are due April 15, 2020, and June 15, 2020.
- For more information or questions go to tax.illinois.gov.
- Extended certain state filing and payment deadlines to align with the IRS to support Hoosiers during COVID-19. Individual tax returns and payments, along with estimated payments originally due by April 15, 2020, are now due on or before July 15, 2020.
- Returns included are the IT-40, IT-40PNR, IT-40RNR, IT-40ES, ES-40 and SC-40.
- Corporate tax returns and payments, along with estimated payments originally due by April 15 or April 20 are now due on or before July 15, 2020. Those originally due on May 15, 2020, are now due on August 17, 2020. Returns included are the IT-20, IT-41, IT-65, IT-20S, FIT-20, URT-1, IT-6, FT-QP and URT-Q.
- All other tax return filings and payment due dates remain unchanged.
- If you need additional time to file, you can request an extension. Instructions can be found on DOR’s website. If an individual requests a federal extension, Indiana automatically extends the state deadline and there is no need to file anything additional.
Customers can get more information if they have questions through the individual customer service line at 317-232-2240. or by emailing DOR using the form at dor.in.gov/3392.htm.
- The Iowa Department of Revenue extended the filing and payment deadline for several state tax types, including income tax prompted by COVID-19 to provide flexibility.
- The order extends filing and payment deadlines for income, franchise, and moneys and credits taxes with a due date on or after March 19, 2020, and before July 31, 2020, to a new deadline of July 31, 2020.
- No late-filing or underpayment penalties are due for qualifying taxpayers who comply with filing and payment deadlines. Interest on unpaid taxes covered by this order shall be due beginning on August 1, 2020.
- Specifically, the order includes:
- Individual Income Tax Return and all supporting forms and schedules
- Composite Return and all supporting forms and schedules
- Fiduciary Return and all supporting forms and schedules
- Corporation Income Tax Return and all supporting forms and schedules
- Franchise Tax Return for Financial Institutions and all supporting forms and schedules
- Iowa Partnership Return and all supporting forms and schedules
- Corporation Return and all supporting forms and schedules
- Credit Union Moneys and Credits Tax Confidential Report
- Taxpayers can check the status of their refunds at the Department’s website where’s my refund page.
- Taxpayers and tax professionals who need assistance can contact the Department by email at email@example.com or call the taxpayer services phone line at 515-281-3114 or 1-800-367-3388.
- The Kansas Department of Revenue announced the following tax extensions:
- Homestead or property tax relief refund claims have been extended for filing 2019 claims to October 15, 2020. Only regular claim forms need to be submitted; no special forms will be required.
- The deadline is extended for filing 2019 tax returns for Individual Income Tax, Fiduciary Income Tax, Corporate Income Tax and Privilege Tax has been extended to July 15, 2020. This means if the balance due is paid on or before July 15, 2020, no penalty and interest will be imposed. Only regular return forms need to be submitted; no special forms will be required.
- Go to www.ksrevenue.org if you have questions or contact the Taxpayer Assistance Center Kansas Department of Revenue at firstname.lastname@example.org.
- The Department of Revenue is extending the 2019 Kentucky income tax return filing due date from April 15, 2020, to July 15, 2020.
- Late payment penalties will be waived for income tax payments deferred from April 15, 2020 to July 15, 2020. However, interest still applies to the deferred income tax payments.
- Additional guidance on COVID-19 Kentucky income tax relief will be available on DOR’s website.
- Offering guidance for filing and payment extension relief for income and franchise tax returns and payments due on April 15 and May 15, 2020.
- See the chart for new due dates for the 2019 income and franchise tax returns:
- The due date for these returns and any payments due with the returns is extended to July 15, 2020.
- This is an automatic extension and no extension request is necessary
- The Department of Administrative and Financial Service has extended the State Income Tax Payment Deadline from April 15 to July 15, 2020.
- This includes any final and estimated Maine income tax payments due by April 15, 2020. Any failure-to-pay penalties and interest will be abated for the period of April 16, 2020, through July 15, 2020.
- The extended filing deadline for Maine income tax returns is automatically tied to any federal extension. Therefore, the filing deadline of April 15, 2020, for 2019 Maine income tax returns, is automatically extended to July 15, 2020.
- This includes Form 1040ME (Maine Individual Income Tax Return), Form 1041ME (Maine Income Tax Return for Estates and Trusts), and Form 1120ME (Maine Corporate Income Tax Return).
- Sales tax and payroll payments will continue as normal. For questions about Maine income tax, contact Maine Revenue Services (MRS) at (207) 626-8475 or visit the MRS website at www.maine.gov/revenue.
- The Maryland Comptroller Office announced the state income tax filing date extended to July 15, 2020. The relief is automatically granted an extension on their Maryland tax filings.
- No additional forms are required. Fiscal year filers with tax years ending January 1, 2020, through March 31, 2020, are eligible for the July 15, 2020, extension.
- Extended business-related tax filing deadlines is now June 1, 2020.
- The extension applies to certain business returns with due dates during the months of March, April and May 2020 for businesses filing sales and use tax, withholding tax, admissions and amusement tax, alcohol, tobacco, and motor fuel excise taxes, tire recycling fee and bay restoration fee returns. Business taxpayers who file and pay by the extended due date will receive a waiver of interest and penalties.
- The Michigan Department of Treasury extended deadlines for all taxpayers required to file a state and city income tax return:
- The annual state income tax return otherwise due on April 15, 2020 now be due on July 15, 2020; those otherwise due on April 30, 2020 will instead be due on July 31, 2020. The dates are the same for state income tax payments.
- The deadline for all taxpayers required to pay estimated state income taxes is extended to July 15, 2020. Penalties and interest will not accrue until July 16, 2020 for unpaid balances due on July 15, 2020, and will not accrue until Aug. 1, 2020 for unpaid balances due on July 31, 2020.
- An annual city income tax return due on April 15, 2020, and any other city income tax payment is due July 15, 2020. Those due on April 30, 2020 are now due July 31, 2020. See more here for city tax extensions.
- Extensions are automatic. Taxpayers do not need to file new forms.
- The Michigan Department of Treasury is waiving penalty and interest for the late payment of tax or the late filing of the return due on March 20, 2020.
- Questions may be directed to the Department at (517) 636-6925.
- The Minnesota Department of Revenue announced that taxpayers filing their annual MN Individual Income Tax return for tax year 2019 now have until July 15, 2020, to file and make their payments without any penalties or interest.
- This includes estimated tax payments for individual income taxes due for the 2019 tax year.
- This grace period does not include estimated tax payments for individual income taxes due April 15, 2020, for the 2020 tax year.
- Business Income Taxes: the Minnesota due date has not changed for Corporation Franchise, S Corporation, Partnership, or Fiduciary taxes. However, under state law:
- C corporations receive an automatic extension to file their Minnesota return to the later of 7 months after the due date or the date of any federal extension to file.
- S corporations, partnerships, and fiduciaries receive an automatic extension to file their state return to the date of any federal extension to file.
- The payment due date has not changed. Taxpayers can request relief from late-filing or late-payment penalties and interest for reasonable cause.
- The Mississippi Department of Revenue extended tax relief to individual and business taxpayers due to COVID‐19.
- Mississippi also extended a new due date filing income tax returns and making first quarter and second quarter estimated payments to July 15, 2020.
- They have also suspended the accrual of interest and penalty on all new assessments and all prior liabilities. Penalty and interest accrual has been suspended effective March 15, 2020 and will continue until the end of the national emergency.
- The Missouri Department of Revenue (DOR) will provide special filing and payment relief to individuals and corporations:
- The deadline to file income tax returns has been extended from April 15, 2020, to July 15, 2020.
- Income tax payment deadlines for individual and corporate income returns with a due date of April 15, 2020, are extended until July 15, 2020.
- This payment relief applies to all individual income tax returns, income tax returns filed by C Corporations, and income tax returns filed by trusts or estates. The DOR will automatically provide this relief, so filers do not need to take any additional steps to qualify.
- This relief for individuals and corporations will also include estimated tax payments for tax year 2020 that are due on April 15, 2020.
- Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020. Individuals and corporations that file their return or request an extension of time to file by July 15, 2020, will automatically avoid interest and penalties on the tax paid by July 15.
- Extended the payment and filing deadlines for 2019 individual income taxpayers to July 15, 2020, in accordance with the new federal tax filing deadline.
- The Montana Department of Revenue will be lenient in waiving penalties and interest associated with late tax payments and the department will work with taxpayers on an individual basis.
- The Nebraska Department of Revenue announced state income tax filers will have an automatic extended deadline to July 15, 2020, to pay state income taxes and estimated payments that were originally due on April 15, 2020.
- To request further relief, please complete and mail a Request for Abatement of Penalty, Form 21, or Request for Abatement of Interest, Form 21A, with an explanation of how you were impacted.
- New Hampshire’s relief allows 98% of taxpayers to file and pay for tax year 2019 by June 15, 2020, without penalties or interest.
- The New Hampshire Department of Revenue Administration will grant automatic relief to Business Profits Tax (BPT), Business Enterprise Tax (BET) and Interest & Dividends Tax (I&D) taxpayers in the form of payment relief and expansion of automatic filing extensions and penalty safe harbors.
- Relief is available for certain BPT, BET and I&D taxpayers who are impacted by the COVID-19 pandemic and unable to pay the amount due on April 15, 2020. Those qualifying taxpayers will have until June 15 to remit payment without typical penalties and interest.
- Taxpayers who qualify for this specific relief are Business Tax taxpayers who owed $50,000 or less in taxes (total BPT and BET tax liability) for tax year 2018 and I&D taxpayers who owed $10,000 or less in taxes for tax year 2018.
- The New Jersey Division of Taxation announced an extension of state due dates for Individual Gross Income Tax and Corporation Business Tax to file and make payments until July 15, 2020.
- Check back here for updates and information as it becomes available.
- You can file for free through the New Jersey Online Income Tax Filing System, download Income Tax forms or make payments from this website.
- The Taxation and Revenue Department announced that New Mexicans will have an extra 90 days to file and pay their 2019 personal income taxes. Taxpayers will have until July 15, 2020, to file and pay any taxes due.
- The deadline for 2019 corporate income taxes will be extended until July 15.
- The state is extending deadlines for employers to remit withholding taxes. Taken together, these as payment is received by July 15, 2020. Under New Mexico law, however, interest will accrue on any unpaid balances from April 15 forward.
- Withholding tax is withheld from employee wages and remitted to the state each month. Withholding taxes normally due on the 25th of March, April, May and June will now be due on July 25.
- The state will waive penalties for withholding taxes not remitted during the grace period. However, under state law, interest will accrue from the original due date.
- Anyone who has filed a return and is due a refund can check the status of that refund through the Taxpayer Access Point (TAP) at tax.newmexico.gov.
- Taxpayers are encouraged to file electronically or through the TAP system, if possible, to expedite their returns.
- The Department of Taxation and Finance announced the state’s income tax filing deadline is being moved to July 15, 2020.
- The new deadlines are applicable to individuals and businesses. The new deadline would be for filing tax returns and paying taxes owed. No interest or penalties would be charged for either state or federal filers.
- If you are a quarterly or annual sales tax vendor, and were unable to file or pay your March 20, 2020, sales tax return due to COVID-19, you may be eligible to apply to have penalty and interest waived. To determine whether you are eligible, see N-20-1.
New York City
- Allowing for a waiver of penalties for DOF-administered business and excise taxes due between March 16, 2020, and April 25, 2020. Taxpayers may request to have the penalties waived on a late-filed extension or return, or in a separate request.
- If you file an extension or return or make a tax payment in accordance with these rules, you will not be subject to any late filing, late payment, or underpayment penalties. While late filing and late payment penalties are waived, interest, where applicable, at the appropriate underpayment rate, must be paid on all tax payments received after the original due date calculated from the original due date to the date of payment.
- All paper filings should be marked “COVID-19” on the top center of the first page. The same relief will be provided to adversely affected electronic filers.
- You may request a penalty abatement by writing to: NYC Department of Finance P.O. Box 5564 Binghamton, NY 13902-5564 or the online portal at www.nyc.gov/dofaccount, or send an email to Penalty_Abatements@finance.nyc.gov. Please include the letter identification on your notice, or your EIN. 20-2 March 19, 2020 NYC DEPARTMENT OF FINANCE FINANCE MEMORANDUM Business Tax Filing Extensions and the COVID-19 Outbreak.
- The North Carolina Department of Revenue has extended the deadline for individual, corporate and franchise state tax filings to July 15, 2020. They are waiving penalties for those filing and paying their taxes after April 15, as long as they file and pay their tax before the updated deadline.
- The extension applies to income and franchise tax returns originally due on April 15, 2020, from individuals, corporations, partnerships, trusts, and estates.
- Interest will be charged to filings after April 15 until the date of payment.
- Most taxpayers can file online for free at www.NCDOR.gov/NCfreefile
- Go to NCDOR.gov for general information or call 1-877-252-3052, For Individual income tax refund inquiries call 1-877-252-4052.
- The North Dakota Office of State Commissioner announced Individuals or businesses who are unable to file an income tax return or pay the tax by the April 15th deadline, can file and make payment through July 15, 2020 without penalty and interest.
- Guidance for North Dakota Taxpayers During COVID-19 Precautions can be found at www.nd.gov/tax.
- As a North Dakota taxpayer, you have the ability to request additional time if you believe you will be unable to file a return or pay any other taxes in a timely manner because of a COVID-19 related situation, please contact the Office of State Tax Commissioner.
- Taxpayers may also e-file by purchasing tax preparation software, by working with a tax professional, or by using the Office of State Tax Commissioner’s stand-alone free ND Fillable Forms option (for ND return only).
- North Dakota tax booklets, forms and payment vouchers may be found on the Office of State Tax Commissioner’s website at www.nd.gov/tax/forms.
- The Ohio Department of Taxation announced that filing and payment deadlines for state income taxes have been extended to July 15, 2020.
- The filing extension, and waiver of penalty and interest, will be available to those filing Ohio individual income tax, school district income tax, pass-through entity tax, and to taxpayers that have opted in to have the commissioner administer the municipal net profit tax through the state’s centralized filing system.
- Individuals, estates, trusts and certain businesses making quarterly estimated income tax payments, have been granted additional time to file and pay without penalty or interest.
- The first and second quarterly payments, normally scheduled for April 15 and June 15 will both be extended to July 15.
- The Oklahoma Tax Commission (OTC) announced that Oklahomans now have until July 15, 2020, to file and pay their 2019 state income tax return.
- This is applicable to income tax due from Tax Year 2019 and the first quarter payment for Tax Year 2020, both of which would normally be due on April 15, 2020.
- Check the status of your return, complete identity verification processes, make payments and much more from the comfort of your home through OkTAP.
- Many taxpayers have already scheduled their 2019 income tax payment to be withdrawn on a future date. Taxpayers may need to cancel and reschedule these payments to be withdrawn at a later date. Click here to fill out a form that allows you to cancel the payment you previously scheduled
- Follow the directions on the form to submit and do not mail the form to the Oklahoma Tax Commission – you will need to submit it by email to email@example.com.
- The Oregon Department of Revenue announced an extension for Oregon tax filing and payment deadlines for personal income taxes and other taxes to July 15, 2020, and allowing all payments due on that date to be deferred until July 15, 2020, without penalties or interest.
- This is an automatic extension of the 2019 tax year filing and payment due dates for certain affected taxpayers.
- The Department of Revenue announced the deadline for taxpayers to file their 2019 Pennsylvania personal income tax returns is extended to July 15, 2020.
- Taxpayers can electronically file their Pennsylvania tax returns for free through Padirectfile, a secure, state-only electronic income tax filing system. For more information or to file, visit Padirectfile.
- All taxpayers who received more than $33 in total gross taxable income in 2019 must file a Pennsylvania personal income tax return by July 15, 2020.
- The deadline for quarterly estimated personal income tax payments is extended to July 15, 2020. That means estimated payments for the first and second quarters of 2020 will be due by July 15, 2020.
- Any individual who expects to receive more than $8,000 of Pennsylvania-taxable income not subject to withholding by a Pennsylvania employer must estimate and pay personal income tax quarterly. Estimated tax due dates for individuals are typically April 15, June 15, Sept. 15 and Jan. 15.
- If additional time to file is needed, taxpayers have the option to file a request for an extension to file their Pennsylvania personal income tax return. The extension is available for up to six months. An extension of time to file does not extend the deadline to make a payment if you owe taxes.
- The DOR is extending the due date for corporations with tax returns due in May 15, 2020, to August 14, 2020.
- There is no extension for the June 15, 2020, estimated payment due date for corporations. For additional information on corporate taxes and deadlines click here.
- Announced the April 15, 2020, deadline for certain tax filings and tax payments, the Division of Taxation mirrors the federal extensions to July 15, 2020, for individual filers.
- Sales Tax:
- The Rhode Island Commerce Corporation has information about low-interest federal disaster loans for working capital to Rhode Island small businesses that are suffering substantial economic injury as a result of the coronavirus. For details, including links to applications, hotlines, and other resources.
- The Division is reminding businesses and other taxpayers that under Regulation 280-RICR-20-00-4, they have the express right to request that penalties be abated where there was no negligence or intentional disregard of the law.
- Is offering an extension for state income tax returns and payments. Returns and payments due April 1 – June 1 will now be due July 15, 2020. Penalty and interest will not be charged if payment is made by July 15.
- This includes SC Individual Income Taxes, Corporate Income Taxes, Sales and Use Tax, Admissions Tax, Withholding Tax, and other taxes administered by the SCDOR. There is no limitation of the amount of the payment that may be postponed
- Other state returns and payments due April 1 – June 1 will now be due June 1, 2020.
- Penalty and interest will not be charged if payment is made by June 1. This includes Sales and Use Tax, Admissions Tax, Withholding Tax, and other taxes that are filed with and/or paid to the SCDOR.
- The Tennessee Department of Revenue has extended the due date for filing and paying the Hall income tax from April 15, 2020 to July 15, 2020.
- Taxpayers will have until July 15, 2020, to file returns and make any payments originally due on April 15, 2020.
- Interest and late filing penalties will not be applied to returns filed and payments made on or before this extended due date.
- The October 15, 2020, six-month extension date for the calendar year 2019 return remains unchanged.
- For More Information visit www.tn.gov/revenue. Submit a request for help or information to one of their agents.
- The Texas Comptroller of Public Accounts is automatically extending the due date for 2020 Texas franchise tax reports to July 15, 2020; there is no need to file any additional forms.
- For more information For EFT and Non-EFT Franchise Taypayers on additional extensions, penalties and due dates, click here.
- The Utah State Tax Commission intends to follow the federal government’s tax filing and payment actions and is planning to extend the tax deadline for individuals to July 15, 2020, with no penalties or interest.
- For the most efficient tax assistance, use Taxpayer Access Point (TAP).
- The Tax Commission is currently holding all appeal events as scheduled via telephone conference only rather than an in-person hearing, please call 801-297-2282.
- The Vermont Department of Taxes moved the deadline for filing Vermont income tax from April 15 to July 15, 2020.
- The Department will provide relief to businesses owing Meals and Rooms Tax and Sales and Use Tax by foregoing any penalty or interest for those who are not able to meet the March 25 or April 25 deadlines.
- Businesses that are unable to meet the March 25 and April 25 filing deadlines will not be charged any penalty or interest for late submissions.
- Businesses who can meet the deadlines for filing and payment should continue to do so.
- This is not an abatement of the tax collected.
- Businesses must continue to collect Meals and Rooms and Sales and Use Taxes as they normally would.
- Virginia announced that state income tax payment deadline has been extended to May 1, 2020.
- Virginia will now waive the accrual of interest on certain income tax payments that were originally due during the period from April 1, 2020 to June 1, 2020.
- It also applies to extension payments as well as any estimated payments that were due during this period. No penalties or interest will be incurred on these payments if made in full by June 1, 2020.
- Taxpayers are encouraged to file and pay their taxes as soon as possible to avoid accruing interest on their tax payments.
- Annual filers: The Annual 2019 return is now due June 15, 2020.
- Quarterly filers: The Quarter 1, 2020 return is now due June 30, 2020.
Please note: Extensions only push out the due date; they don’t waive the tax owed. If you already filed and scheduled your payment, you must cancel your payment in your online My DOR account, BEFORE the day the payment is scheduled
- The Department of Revenue announced it will work with businesses that cannot file or pay their taxes on time due to the COVID-19 outbreak.
- Affected businesses that owe Washington taxes may qualify for the following assistance:
- These actions are in effect during the state of emergency (February 29, 2020, through the end of the state of emergency, yet to be determined).
- All businesses should still file their returns if they are able to do so. Upon request, the Department will provide extensions for paying tax returns.
- This only applies to returns that are due and not already paid during the state of emergency (Feb. 29, 2020, through the end of the state of emergency.
- 60 days for monthly returns (this applies to the February 2020 and March 2020 returns at this time)
- 30 days for the Q1/2020 return
- 30 days for the Annual 2019 return
- Upon request, Revenue will work with taxpayers that are impacted by COVID-19 to adjust payment plan amounts or extend payment dates 30 to 60 days.
- If payment is extended, additional penalties accrued will be waived.
- The Department will delay scheduling audits of businesses that have gross income of less than $5 million in the past year, or are a certain type of business until mid-May.
- For audits in progress, Revenue will work with you to either issue the audit or provide an extension of up to 60 days.
- The Department currently has the authority to waive interest through April 17, 2020. Please check back to see if this date gets extended.
- Businesses with a temporary registration that have had their event cancelled should notify the Department by replying to the original email they received when obtaining their temporary certificate. If you no longer have the original email, you may send a message to firstname.lastname@example.org to cancel your temporary registration.
- The Department will waive the BLS delinquency fee for late renewals through April 17, 2020. Please check back to see if this date gets extended. Please note that penalties and interest accrued prior to February 29, 2020, will not be waived.
- The Department will waive penalties for late non-profit applications and renewals for exempt property through April 17, 2020. Please check back to see if this date gets extended.
- The West Virginia State Tax Department is providing special tax filing and payment relief to individuals and corporations whose 2019 annual income return is due April 15, 2020.
- The deadline to file 2019 annual income tax returns for individuals, trusts or estates, and corporations has been extended from April 15, 2020, to July 15, 2020.
- Payment deadlines for these returns are also extended until July 15, 2020.
- Failure to pay any balance of tax due by July 15, 2020, will result in the accrual of penalties and interest beginning July 16, 2020.
- This relief also extends to estimated tax payments for tax year 2020 that are due between April 15, 2020 and July 15, 2020 for individuals, trusts or estates, corporations, and pass-thru entities.
- This relief does not apply to employer withholding tax returns and payments or to any other tax collected by the Tax Commissioner.
- The Department will automatically provide this relief, so filers do not need to take any additional steps to qualify for this extension of time.
- Wisconsin income tax payment and return due dates are extended to July 15, 2020, and will automatically extend time and waive interest and penalties for taxpayers due to COVID-19.
- Tax filers do not have to file any extension forms to be eligible for this new due date and there is no limit on the amount of payment to be postponed, and no income exclusions.
- This applies to individuals, trusts, estates, partnerships, associations, companies or corporations.
- This relief is solely for income tax payments, estimated income tax payments and returns due April 15, 2020.
- There will be no interest or penalty for the period of April 15, 2020, to July 15, 2020.
- Interest, penalties, and underpayment interest for failure to make quarterly estimated tax payments with respect to such postponed federal income tax filings and payments will begin to accrue on July 16, 2020.
- The Wisconsin Department of Revenue services can be found online at www.revenue.wi.gov. Individuals: can also call (608) 266-2486 • Businesses: (608) 266-2776.
Editor’s note: Visit the Intuit Accountant and Tax Professional COVID-19 Resource Center for information and tools to help you and your clients navigate these challenging times.
Note: The Paycheck Protection Program Flexibility Act (“PPP Flex Act”) was signed into law on June 5, 2020. The PPP Flex Act extends the availability of loans under the Paycheck Protection Program (PPP) and adjusts certain rules applicable to PPP loans. The information reflected here may therefore be outdated. We are working to update our resources to reflect these updates to the PPP, so be sure to check back soon. Please refer to the latest guidance from the SBA and Treasury to confirm current program rules and how they apply to your particular situation.
PPP borrowers may engage the services of an accountant to track the use of their PPP funds. However, only the borrower or an authorized representative who is legally authorized to make certifications on the borrower’s behalf may submit an application for loan forgiveness. Accountants should be aware of this limitation and ensure that an authorized representative of the borrower understands his or her obligation to complete, review, and certify to the contents of any loan forgiveness application.