Adjustments to State Tax Filings

Del YounglasCOVID-19, Tax Alert

Tax Alert from Maloney+Novotny

COVID-19 Related Changes to State Tax Filings

In the light of the coronavirus (COVID-19) pandemic, states throughout the country are adjusting their filing and payment deadlines in order to offer relief and to accommodate those affected by the virus or a particular state’s mandatory ‘stay order’.

Below are several links to helpful informational resources which will address various state positions as a result of the pandemic. We have also highlighted a few states that our clients are commonly doing business in.  Information is being updated on a daily basis, and we will keep you apprised of new information once it becomes available.  We are here, and dedicated, to helping you navigate through these unprecedented times.

The American Institute of Certified Public Accountants (AICPA)

The AICPA is compiling a state-by-state chart which summarizes recent developments on state tax filings related to the coronavirus. The AICPA will be updating this on a regular basis: https://www.aicpa.org/content/dam/aicpa/advocacy/tax/downloadabledocuments/coronavirus-state-filing-relief.pdf

The Ohio Department of Jobs and Family Services (ODJFS)

The ODJFS website offers a Q&A, instructional guidance and how-to videos relating to COVID-19 unemployment insurance benefits: http://jfs.ohio.gov/ouio/CoronavirusAndUI.stm

Ohio Department of Health (ODOH)

The ODOH website offers information to assist both individuals and business as it relates to assistance for medical, families in need, insurance coverage, obtaining small business loans, deferring business health insurance premium payments: https://coronavirus.ohio.gov/wps/portal/gov/covid-19/home/resources-for-economic-support/econ

Ohio Bureau of Workers’ Compensation (OBWC)

The OBWC’s website offers a list of frequently asked questions relating to workers’ compensation issues affected by COVID-19: https://www.bwc.ohio.gov/downloads/blankpdf/COVID-19-BWCFAQs.pdf

Below are some adjustments to state tax filings for particular states:

Ohio:

Ohio officials said they would mirror IRS guidance as it is updated amid the pandemic.  Have not officially adopted, yet.

State Unemployment – no penalty or interest for late filing and payment

Worker’s Compensation – can delay March 2020 – May 2020 premium payments to June 1, 2020

California:

The Franchise Tax Board “FTB” is postponing until July 15 the filing and payment deadlines for all individuals and business entities for:

  • 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 statewide directly affected by the new coronavirus (COVID-19) may request up to a 60-day extension of time from the EDD to file their state payroll reports and/or deposit payroll taxes without penalty or interest. This extension may be granted under Section 1111.5 of the California Unemployment Insurance Code (CUIC). A written request for extension must be received within 60 days from the original delinquent date of the payment or return.

Illinois:

Has not adopted the Federal guidelines, yet.

Estate Tax – Estates with returns and payments due between March 16, 2020 and April 15, 2020 will receive a 30-day extension for filing and payment. Please be aware that an extension of time to pay does not waive or abate statutory interest and that payments must be sent to the Illinois State Treasurer.

Sales Tax Deferral for Bars And Restaurants – Eating and drinking establishments that incurred less than $75,000 in sales tax liabilities last year will not be charged penalties or interest on payments due in March, April or May made late.  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.  Any taxpayers taking advantage of this relief will be required to pay their sales tax liabilities due in March, April and May in four installments starting on May 20 and extending through August 20.

Michigan:

Has not adopted the Federal guidelines, yet.

Small businesses scheduled to make their monthly sales, use and withholding tax payments on March 20 can postpone filing and payment requirements until April 20. Waive all penalties and interest for 30 days.

New York:

Has not adopted the Federal guidelines, yet.

NYS – Waive fines for businesses that miss sales tax deadline of 3/20/20.

NYC – 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. There is no waiver of interest

Pennsylvania:

Extends Personal Income, Business Income & Receipts Tax and Net Profits Tax Return Filing Deadline to July 15, 2020.  This includes estimated payments

Waive penalties and interest on 2019 personal income tax payments through the new deadline of July 15, 2020. This extension applies to both final 2019 tax returns and payments, and estimated payments for the first and second quarters of 2020.

Waiving penalties for businesses that are required to make accelerated sales tax (AST) prepayments by Friday, March 20, 2020. The DOR also indicated, “additionally, for April sales tax payments, the department   the AST prepayment requirement and asking businesses to simply remit the sales tax that they have collected in March.

Philadelphia – Extends deadline to pay real estate taxes due March 31, 2020 to April 30, 2020

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