Several state tax authorities have announced various relief provisions for businesses and individuals impacted by the Coronavirus. In many cases, the provisions are an emphasis of relief provisions already available such as extensions to file. A few states have issued explicit extensions and late interest and penalty relief for individuals and or businesses, others have tied their decisions to what the Federal government implements. Now that Secretary Steven Mnuchin has announced that taxpayers may delay their tax payments for 90 days due to the coronavirus pandemic, more states are expected to announce similar provisions. However, taxpayers should not assume that relief for late payment will be provided at the state level. Normally the expected tax liability must be paid at the original due date of the return. Before delaying payment, provisions for each state where the taxpayer has an obligation should be reviewed. We recommend that taxpayers’ make every effort to file and pay timely or comply with statutory extension provisions.
As of March 16, the following had been announced:
Alabama – Will couple their decisions with that of the IRS (Department of the Treasury)
California – Tax filing deadline extended to June 15 for individuals and businesses unable to file on time based on compliance with public health requirements related to COVID-19. This includes partnerships and LLC’s whose returns were due March 16. The California Franchise Tax Board will also waive interest and any late payment penalties that would otherwise apply.
For payroll taxes owed to California, employers directly affected may request up to a 60-day extension of time to file reports and/or deposit payroll taxes without penalty or interest. A written request must be submitted within 60 days from the original delinquent date of the payment or return.
Connecticut – Announced extension of business returns to June 15. Individuals’ returns to follow IRS relief, if any.
Maryland – Extended filing deadline for business returns until June 1 for business returns with due dates during the months of March, April, May 2020 for sales and use tax, withholding tax, admissions & amusement tax, as well as alcohol, tobacco, and motor fuel excise taxes, tire recycling fee and bay restoration fee returns.
Maryland will extend corporate and individual tax deadlines if the IRS announces an extension.
Massachusetts – Allows an automatic 6 months to file income tax returns, and will follow federal relief. Massachusetts announced they may waive penalties under certain circumstances and will work with impacted taxpayers to waive such penalties.
Oregon – Will follow IRS declarations for extensions of time to file and may waive penalties under certain circumstances if taxpayers are late paying a tax obligation due to a circumstance beyond the taxpayer’s control such as a declared regional or national state of emergency.