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.

Federal Treasury Secretary Steven Mnuchin previously announced a 90-day deferral for individuals and many businesses in making certain tax payments to the IRS. Separately, recently published IRS Notice 2020-18 has advised that the April 15 due date for return filing purposes will be moved to July 15 to coincide with the 90-day payment deferral, and that there is no limitation on the amount of the payment that may be postponed to July 15.

This special edition reviews similar reactions thus far by several states regarding short-term tax payment and return filing responsibilities implemented because of this pandemic.

Alabama – Due Date Changes Reported

On March 23, 2020, the Governor of the State of Alabama signed a supplemental State of Emergency Order allowing the Alabama Department of Revenue to extend state filings until July 15, 2020. Thereafter, the Commissioner posted and later updated an Executive Order providing that any person with a state individual income tax or corporate income tax payment, a financial institution excise tax payment, or a business privilege tax payment due on April 15, 2020, or a return for any of the foregoing taxes due on April 15, such payment and return due date shall be automatically postponed to July 15. The Order further states that there is no limitation on the amount of the payment that may be so postponed. This relief is available only with respect to payments due on April 15 for the state income tax (including payments of tax on self-employment income), for estimated state income tax for the taxpayer's 2020 taxable year, for the financial institution excise tax for the 2020 form year, and for the business privilege tax for the 2020 form year, and with respect to returns due on April 15 for the foregoing taxes. The Order states that no extension is provided for the payment or deposit for any other type of state tax, or for the filing of any other state informational return. The relief granted under the Order essentially provides that there will be no interest, penalty, or additions to tax for the failure to file these identified taxes by July 15, 2020, but that interest, penalties and additions to tax will begin to accrue on July 16, 2020. More information can be found here.

Florida – No Further Due Date Changes Reported

Georgia – Due Date Changes Reported

On March 23, 2020, the Governor of the State of Georgia announced that the deadline for filing income tax returns in that state would be moved from April 15 to July 15 in accordance with the new federal tax filing deadline. Although anticipated, a formal Executive Order has not yet been published nor has the Georgia Department of Revenue issued as yet a formal notice of this deadline extension. Find more information here.

Louisiana – Due Date Changes Reported

On March 23, 2020, the Louisiana Department of Revenue published Revenue Information Bulletin No. 20-009 in which the Department stated that the deadline for filing various state income and franchise tax returns is being extended to July 15, 2020. Those returns so extended include partnership returns on Form IT-565 due April 15 and on Form R-6922 due May 15; individual tax returns on Forms IT-540, IT-540B, and R-1035 due May 15; fiduciary tax returns on Form IT-541 due May 15; and corporate tax returns on Form CIFT-620 due May 15. The Department stated that this filing extension to July 15 is automatic for eligible taxpayers and no extension request is necessary; and that the Department will not apply penalties or interest to any applicable return or payment submitted by the extended July 15 due date. The Department noted in Bulletin No. 20-009 that an additional extension can be requested from July 16 to November 15, 2020 for individual, fiduciary, and partnership returns and to December 15, 2020 for corporation returns. The Department also stated that, due to the statewide stay-at-home order issued by the Governor of the State of Louisiana, the Department has suspended in-person customer service help and recommends taxpayers take advantage of the online customer service options available on the Department's website. Find more information here.

Maryland – Due Date Changes Reported

On March 18, the Comptroller of the State of Maryland issued a news release stating that the 90-day extension of the April 15 deadline for federal income tax payments would also be allowed to Maryland business and individual income taxpayers, and that no interest or penalty for late payments will be imposed upon 2019 tax payments that are made by July 15, 2020. This announcement does not extend the deadline for filing returns, but rather only addresses an extension of the April 15 deadline for making the income tax payments. The release did note that taxpayers who take advantage of the federal extension to file the return will continue to be automatically granted an extension on their Maryland tax filings. In a separate news release, the Comptroller stated that all of the agency's branch offices throughout Maryland will be closed and will remain closed until further notice, and that taxpayers are urged to file their returns electronically and to submit their questions either via phone at 1-800-MD-TAXES or via email at taxhelp@marylandtaxes.gov. More information can be found here and here.

Mississippi – Due Date Changes Reported

On March 23, the Mississippi Department of Revenue issued Notice 2020-01, which provides relief to individual and business taxpayers due to the COVID-19 pandemic. Under this Notice, the deadline to file and pay the 2019 individual income tax and corporate income tax is extended until May 15, 2020, and the first quarter 2020 estimated tax payment is also extended to May 15. The Notice states that penalty and interest will not accrue on the extension period through May 15. Further, withholding tax payments for the month of April are extended until May 15. The Notice specifically states that this extension does not apply to sales tax, use tax, or any other tax types, and that these returns for such taxes should be filed and paid on the normal due date. Further, the Notice states that the extension does not apply to payments on prior liabilities. However, the Notice acknowledges that the Department will consider an extension of time to file and pay on a case-by-case basis for taxes not extended to May 15, and that these requests should be directed to the Department's customer service line at 601.923.7700. While recognizing that these extensions do not coincide with the federal extensions, the Notice states that the Department cannot extend the deadlines beyond the fiscal year end of June 30. More information can be found here.

South Carolina – Further Due Date Changes Reported

On March 23, 2013, the South Carolina Department of Revenue issued Information Letter #20-4 re-addressing much of the filing and payment relief previously granted in Information Letter #20-3. The Department recognized in Letter #20-4 that the Internal Revenue Service had extended until July 15, 2020 the original due date for filing federal income tax returns (or extensions) and making income tax payments originally due on April 15. Because of the extension from the IRS, Letter # 20-4 noted that the Governor of South Carolina directed the Department to conform to the new federal tax deadline of July 15. Accordingly, the Department has extended the tax relief for South Carolina 2019 income tax returns (that is, individual, C corporation, trust returns) originally due on April 15 to provide the same relief granted by the IRS. The Department stated that taxpayers will have until July 15 to file South Carolina income tax returns and pay income taxes due, which will also include quarterly estimated payments due on April 15. Interest or penalties related to this tax relief is waived according to Notice #20-4. With respect to various other South Carolina taxes, Letter #20-4 stated that the previous relief granted in Letter #20-3 will remain in effect for purposes of filing and payments due between April 1, 2020 and June 1, 2020. Those other taxes that continue to have the June 1 filing and payment relief include state sales and use taxes, local sales and uses taxes collected by the Department, property tax returns filed with the Department, withholding taxes, motor fuel user taxes, state accommodation taxes, beer, wine and liquor taxes, possibly among other taxes. Notice #20-4 expressly states that this relief does not apply to tax returns filed with a county or municipality. The Department further stated that the relief granted under these Notices do not require any additional forms or call to the Department to qualify for the relief. The Department also referenced that an additional extension of time to file income tax returns to October 15, 2020 is available as referenced in the Notice. Find more information here.

Tennessee – Due Date Changes Reported

On March 24, 2020, the Governor of the State of Tennessee announced that the deadline for filing franchise and excise tax returns in this state would be moved from April 15 to July 15, 2020. The announcement indicates that taxpayers will have until July 15 to file returns and make any payments (including quarterly estimated payments) originally due on April 15. Guidance from the Tennessee Department of Revenue has just been issued and can be found here.

Texas – No Due Date Changes Are Being Made

The Comptroller of the State of Texas has recently issued a few messages reminding businesses to use the agency's online tools for tax filing and payment. In these messages, the Comptroller recognizes the hardships businesses are facing during these uncertain times. However, the Comptroller has stated that taxes based on sales made in February and collected by businesses on behalf of state and local governments in February must be remitted by the March due dates for state and local sales taxes, hotel taxes, mixed beverage gross receipts and sales taxes, motor vehicle rental tax, seller-financed motor vehicle sales tax and motor fuel taxes. The Comptroller stated that this is a complex and rapidly evolving situation where many businesses are facing devastating economic conditions such as bars, restaurants, retail outlets and other businesses, and that the looming health emergency may strain the state's ability to provide adequate care and emergency services. The Comptroller further stated that Texans must pull together to ensure the state meets the inevitable needs; and, as part of pulling together, the Comptroller asks businesses to remit the taxes they collect from Texans by the established due date. The Comptroller further stated that each tax due date will be examined as it approaches, and the Comptroller's Office will keep lawmakers and stakeholders informed as the agency evaluates rapidly changing conditions. In closing, and recognizing that businesses are struggling to pay the full amount of sales taxes that they collect in February, the Comptroller's Office just announced that the agency is offering assistance in the form of short-term payment agreements and, in most instances, waivers of penalties and interest. More information can be found here and here.