As COVID-19 continues to disrupt businesses all across the US (and the world), we are all still trying to understand the multiple challenges which will arise and how states will respond. Miles Consulting and our team are here to provide you with the latest updates and facts regarding the changing tax implications and to guide you through some relief provisions declared by states. Some clients have reached out to us with questions regarding extensions for filing returns, updated filing dates and requirements to waive late payments. As we find out, we’ll let you know as soon as we can, recognizing that it’s a continual moving target!
We are here to help and recognize your concerns regarding the changing tax laws and therefore will be providing regular updates on changes as they happen, plus notifications we may get about future changes. Where some states are taking steps to extend the filing deadlines, they are also trying to provide telephone assistance with any tax questions during the outbreak. We have found that many states have already put in place good measures for their Departments of Revenue employees to work from home. Others are not as quick to do so.
Where possible below, we have provided links to state websites and notices so that even if our comments become “old news” as soon as we publish them, the resource link should still be there. As with all tax related (and COVID-19 related) news, we ask that you double check the accuracy as, again, this is a quickly moving target.
California:
During this public health emergency, California’s Franchise Tax Board has granted an extension to file 2019 California Tax returns and make certain payments until July 15,2020. According to FTB press release, this relief applies to any Taxpayer or business entity who is experiencing any difficulty as result of COVID-19 in filling and payment of:
- 2019 Tax returns
- 2019 Tax return payments
- 2020 1st and 2nd quarter estimate payments
- 2020 LLC taxes and fees
- 2020 Non-wage withholding payments
Employers who are directly affected by the COVID-19 may request upto a 60-day extension of time to file their state payroll reports and/or deposit payroll taxes without penalty or interest.
On the sales tax side of the house, the California Department of Tax and Fee Administration (CDTFA) has also offered some relief in the form of granting extensions for filing returns and making payments, relief from interest and penalties, and filing a claim for refund. Click here for more information.
Furthermore, all small businesses in San Francisco, with up to $10 million in gross receipts, will be offered to defer some business taxes. Click here for further instructions.
New York:
At this time, the State has not extended the deadline to file personal income Tax returns but has announced the waiver of the penalties on request for business and excise taxes due between March 16, 2020 to April 25, 2020 which includes:
- Late filing
- Late payment
- Underpayment
No waiver for interest payments have been announced.
Taxpayers requesting relief are also required to mark “COVID-19” on the top center of the first page for all paper filings. For more information, please refer to the NYC DOF Finance Memorandum.
Washington:
In order to provide relief to all COVID-19 impacted businesses, DOR has extended the due date for filing and paying B&O tax returns upon request:
- 60 days for monthly filers
- 30 days for quarterly and annual filers
The Department is making sure that they are doing everything they can to give these extra graces during the state of emergency and waive penalties accordingly. Click here to see the requirements.
Furthermore, the city of Seattle has also announced to delay auditing businesses with gross income of less then $5 million in the past year, for 60 days. This will allow them to increase their flexibility during this emergency.
Arizona:
The State has announced to move the deadline for filing and paying state income taxes for induvial and corporations to July 15, 2020. There will be no penalty for late filing and late payments and interest has also been waived under this announcement.
The state encourages all taxpayers to file electronically during the COVID-19 situation in order to be able to process the returns in a more efficient way.
Colorado:
We are keeping track of the COVID-19 updates provided by Colorado where the Department of Revenue is providing relief to all Colorado individual and business taxpayers by extending the payment deadlines from April 15, 2020 to July 15, 2020. Interest and penalties for estimated payments until July 15, 2020 is also waived. These extension and waivers do not apply to:
- Payments due pursuant to a notice deficiency
- Notice of final determination
- Demand for payment
- Installment agreement
- Closing agreement
The state has also provided many resources for Tax professionals to guide them throughout the process. Furthermore, Colorado small businesses are being granting loans up to $2M as part of the Small Business Administration’s Economic Injury Disaster Loan program to help those who are being impacted by the COVID-19. Click here to see the announcement.
Although it appears that every state is reacting differently in enacting tax measures to support the communities impacted by the COVID-19, our team is keeping track of daily updates and changes to help our clients to bridge the gap between your business and the rapidly changing tax provisions.
If you have specific questions, please reach out to one of our team members and ask. You can reach us at info@milesconsultinggroup.com.
Most importantly, we wish you and your families health and sanity during this diffiult time!
