COVID-19 is tragically impacting our health as well as irrevocably altering much of our way of life. Health is first priority.

Still, we are continuing to monitor various state reactions to this pandemic for purposes of understanding short-term tax and tax return responsibilities.

Please take precautions to stay safe.

Alabama – Further Updates Reported

On April 10, 2020, the Alabama Department of Revenue announced that the period for certain tax relief related to income and other taxes has been updated. Taxpayers can defer state income tax payments due on or after April 1, 2020 and before July 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations, and other non-corporate tax filers.

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 any additional forms or call the Alabama Department of Revenue to qualify for this automatic state tax filing and payment relief. Individual taxpayers who need additional time to file beyond the July 15 deadline can request a filing extension through the usual methods.

A copy of the updated order of the Commissioner of Revenue can be found here.

District of Columbia – Updates Reported

Office of Tax and Revenue (OTR) of the District of Columbia has extended the original April 15, 2020 deadline to file and pay all income, partnership, and franchise tax returns until July 15, 2020. This extension applies to all D-20, D-30, D-40, D-41, D-40B, and D-65 tax filers, and includes combined return filers. This extension is automatic and does not require taxpayers to apply.

As to sales and use tax filers, the OTR will automatically waive interest and late payment penalties of sales and use taxes for all businesses (except hotels and motels) for periods ending on February 29, 2020 and March 31, 2020 provided that payment of all taxes due for these periods are paid in full by July 20, 2020. All businesses must continue to timely file their monthly and quarterly sales and use tax returns through OTR's online portal, MyTax.DC.gov, to receive this benefit.

For more information on the extension please click here.

Florida – No Further Updates

Georgia – Further Updates Reported

On April 7, 2020, the Commissioner of the Georgia Department of Revenue certified an emergency rule which extends the application deadline for conservation use and forest land property tax breaks to the later of June 1, 2020 or 45 days after the date of the mailing of the notice of assessment. Georgia law allows for certain property tax relief where the property is used either for conservation purposes or forest land protection purposes. This deadline extension was initiated based on the Georgia Governor's March 31 Executive Order focused on providing broader relief for taxpayers impacted by the COVID-19 pandemic. More information can be found here.

Louisiana – No Further Updates

Maryland – Further Updates Reported

The Maryland Office of the Comptroller published Tax Alert 04-14-20A on April 14, 2020. This new alert is based on additional guidance issued by the IRS on April 9, and modifies the previous Alert issued on April 1. This most recent Alert expands the tax deadline relief until July 15 to include additional returns, tax payments and claims for refund, and generally applies to all taxpayers that have a filing or payment deadline falling on or after April 1, 2020 and before July 15. More information can be found here.

Mississippi – No Further Updates

South Carolina – Further Updates Reported

On April 13, 2020, the South Carolina Department of Revenue issued Information Letter #20-8, which provides additional relief to certain taxpayers as a result of the COVID-19 pandemic. According to this Information Letter, an additional extension to July 15, 2020 now applies to:

• All taxpayers that have an income tax, franchise tax, or corporate license fee filing or payment deadline (either originally or pursuant to a valid extension) between April 1, 2020 and July 15, 2020;
• Taxpayers that have estimated payments due on or after April 1, 2020 and before July 15, 2020; and
• Taxpayers that have a claim for refund deadline due between April 1, 2020 and July 15, 2020.

Further, under certain circumstances taxpayers can seek an additional extension to file their return by filing the appropriate extension form by July 15, 2020, provided that the additional extension date may not go beyond the original statutory extension date.

This additional relief does not change the previously announced extension until June 1, 2020 to file certain other returns and pay certain other taxes that are otherwise due between April 1 and June 1, 2020, such as the state sales and use taxes; local sales and use taxes collected by the Department; property tax returns filed with the Department; withholding taxes; motor fuel user fees; state accommodation taxes; and beer, wine, and liquor taxes.

Further, this additional relief does not apply to any current audit, appeals, or litigation matters. However, a taxpayer may request an extension of time to file a protest of a proposed assessment by submitting a written request for extension to the Audit Section of the Department.

Finally, this additional relief does not apply to current collection matters, including payments due under any payment plan previously entered into with the Department.

Tennessee – Further Updates Reported

On April 6, 2020, the Tennessee Department of Revenue issued Notice #20-11 advising that the filing and payment deadline for the professional privilege tax is being extended from June 1 to July 1, 2020. Beginning in 2020, the only Tennessee licensed professions subject to this privilege tax are:

• Agents, broker-dealers, and investments advisors registered under Title 48 of the Tennessee Code;
• Attorneys;
• Lobbyists; and
• Physicians and osteopathic physicians.

The Department stated that interest and late filing penalties will not be applied to returns filed and payments made on or before the July 1 extended due date. Find more information here.

Texas – Further Updates Reported

On April 2, 2020, the Texas Comptroller issued a release extending the due date for 2020 franchise tax reports to July 15. The release stated that this due date extension applies to all franchise taxpayers, and that the extension is automatic without the need to file additional forms. The Texas franchise tax, as noted in the release, is a tax imposed on each taxable entity formed or organized in Texas or doing business in the state. The release also noted that franchise taxpayers who need an extension beyond July 15 have the following options:

• Non-electronic funds transfer taxpayers who cannot file by July 15 may file an extension request on or before that date and must pay 90 percent of the tax due for the current year or 100 percent of the tax reported as due for the prior year with the extension request, and that those taxpayers who request an extension will have until January 15, 2021 to file a report and pay the remainder of the tax due.
• Taxpayers who are mandatory electronic funds transfer payers may request an extension of time to file by August 15 and must pay 90 percent of the tax due for the current year or 100 percent of the tax reported as due for the prior year with the extension request and that a second extension of time to file may be requested with the initial extension request to obtain an extension of the report due date to January 15. The release also noted that any payments made after August 15 will be subject to penalty and interest.

More information can be found here.