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Sales Tax Updates

Impacts of COVID-19 on Sales & Use Tax Responsibilities

Updated as of June 2020

By now you may consider the following quote a massive understatement, but it continues to remain true: "Ongoing efforts to prevent the spread of COVID-19 have disrupted the normal business operations of many sales, use, and withholding taxpayers …”

Recognizing that the pandemic has leveled many businesses and their operations, states are beginning to offer filing and payment relief for online businesses that owe sales and use tax. This is a long list – and likely to get longer.

Check back often!

Among the states that have made moves so far:

 

Alabama

The Alabama Department of Revenue has announced that, effective immediately, it is extending relief to small retail businesses that are unable to timely pay their February, March, and April sales tax liabilities. Specifically, small businesses whose monthly retail sales during the previous calendar year averaged $62,500 or less may file their monthly sales tax returns for the February, March, and April 2020 reporting periods without paying the state sales tax reported as due. Late payment penalties will be waived for these taxpayers through June 1, 2020. Similar sales tax relief may be available on a case-by-case basis to other businesses significantly impacted by COVID-19 and the preventative measures being taken to limit its spread in Alabama. Taxpayers seeking additional information are advised to visit the Department website's "COVID-19 Updates" page or call the Sales and Use Tax Division at (334)-242-1490. ( Notice, Ala. Dept. of Rev., 03/18/2020 Ala. Commr. Order, Ala. Dept. of Rev., 03/18/2020 .)

The Alabama Department of Revenue has announced that, effective immediately, it is extending relief to small retail businesses that are unable to timely pay their February, March, and April sales tax liabilities. Specifically, small businesses whose monthly retail sales during the previous calendar year averaged $62,500 or less may file their monthly sales tax returns for the February, March, and April 2020 reporting periods without paying the state sales tax reported as due. Late payment penalties will be waived for these taxpayers through June 1, 2020. Similar sales tax relief may be available on a case-by-case basis to other businesses significantly impacted by COVID-19 and the preventative measures being taken to limit its spread in Alabama. Taxpayers seeking additional information are advised to visit the Department website's "COVID-19 Updates" page or call the Sales and Use Tax Division at (334)-242-1490. ( Notice, Ala. Dept. of Rev., 03/18/2020 Ala. Commr. Order, Ala. Dept. of Rev., 03/18/2020 .)

 

 

California

California’s emergency tax or fee relief is available for business owners and feepayers directly affected by disasters declared as state of emergencies over the past three years, may include extension of tax return due dates, relief of penalty and interest, or replacement copies of records lost due to disasters.

In California, all small businesses will have an additional three months to file returns and pay taxes administered by the Department of Tax and Fee Administration (CDTFA). Additionally, all businesses will have an extra 60 days to file claims for refund from CDTFA or to appeal a CDTFA decision. CDTFA is providing a three-month extension for a tax return or tax payment to any businesses filing a return for less than $1 million in tax. For the approximate 99.5% of business taxpayers below the $1 million threshold for their current California sales and use tax obligation, returns for the 1Q20 will now be due on July 31. This automatic extension will remain in effect through the reporting of taxes and fees due on or before July 31, and expands on the relief previously granted to small businesses.  Effective April 2, 2020, small business taxpayers, those with less than $5 million in taxable annual sales, can take advantage of a 12-month, interest-free, payment plan for up to $50,000 of sales and use tax liability. Payment plan requests can be made through our online services system in the coming months. Please bookmark this page and check back for additional updates. The maximum amount that any taxpayer can defer, interest-free under this relief effort, is $50,000. If a taxpayer owes more than $50,000 and needs a payment plan for the amount over $50,000 CA will have to have the taxpayer enter into one payment plan and adjust the appropriate amount of interest off toward the end of the 12 month period.

 

 

Colorado

Colorado retailers that are required to file a sales tax return and remit sales tax on April 20, 2020 may extend their filing and remittance deadline to May 20, 2020. This is a one-time extension of the April 20, 2020 filing and remittance deadline for state and state-administered sales taxes. The extension does not apply to self-collecting home-rule taxing jurisdictions. The Department will waive penalties and interest that may accrue retailers that file their return and remit the full amount of state and state-administered sales tax due April 20, 2020 on or before May 20, 2020. However, a retailer that does not file the return and remit full payment on or before April 20, 2020 will not be able to retain their vendor/service fee. The vendor fee is a percentage of the sales tax collected that a retailer is allowed to retain in order to cover the expenses incurred by collecting and remitting state sales tax. The vendor fee is currently 4% of the sales tax remitted and is capped at $1,000 per filing period.

**Glendale, CO - City of Glendale granting extensions on a case by case scenario. They said the return needs to be filed on time, but they will grant a 30 day extension on paying the taxes (P&I will be waived). If anyone needs to do this for their clients, they need to call the city and request it to get pre-approval. Their phone number is 303-639-4706.

** Vail, CO - Vail businesses will continue to collect sales tax from customers and file sales tax returns as usual. However, they can retain the tax collected for the time being, to help with cash flow. The current online filing and payment system allows for taxpayers to file without paying. It’s unclear at this time how long sales tax payments will be suspended. For now, the Town Council says it will be “for a period of time.” Councilmember Jenn Bruno believes it could be as late as July.

 

Connecticut

Effective March 30, 2020, the Connecticut Department of Revenue Services (DRS) has revised its COVID-19 guidance to allow sales and use tax and room occupancy tax return filing and payment extensions for small business taxpayers only. Small business taxpayers that have $150,000 or less in annual sales tax liability qualify for an automatic extension of time to file and pay. Similarly, taxpayers that have $150,000 or less in annual room occupancy tax also qualify for this relief. A taxpayer that collects both sales tax and room occupancy tax must evaluate each tax separately to determine eligibility for relief. To determine if they qualify for the extensions, taxpayers must utilize a calendar year look back period of January 1, 2019, through December 31, 2019. Any taxpayer that reported $150,000 or less in tax during that period qualifies for the relief. For monthly sales tax and room occupancy tax filers, returns and payments due March 31, 2020, and April 30, 2020, are extended until May 31, 2020. For quarterly filers, returns and payments due April 30, 2020, are extended to May, 31, 2020. Taxpayers who file and pay on or before the extended deadlines will not be subject to any penalties or interest. DRS will not return payments of taxes due March 31, 2020 that have already been made. (Connecticut COVID-19 Frequently Asked Questions (updated through March 30, 2020), 03/30/2020.)

 

Washington DC

 

District of Columbia. L. 2020, Act 23-247 , effective 03/17/2020 (expires 06/15/2020),  enacts the "COVID-19 Response Emergency Amendment Act of 2020." The emergency legislation, enacted to address the COVID-19 pandemic, provides that the Chief Financial Officer (CFO) may waive penalties and abate interest for failure to timely pay sales and use tax for periods ending on February 29, 2020 or March 31, 2020, provided that all taxes for such periods are paid in full on or before July 20, 2020. The waiver does not apply to hotels or motels that are permitted to defer property tax under another provision of the emergency legislation. Under this provision of the emergency legislation, for property that is commercially improved and occupied and is a hotel or motel, the CFO may waive penalties and abate interest for the first installment of real property tax for the 2020 tax year (due on or before March 31) provided the property owner pays the installment by June 20, 2020. The D.C. Office of Tax and Revenue must issue guidance on the definition of a hotel or motel for this purpose. The legislation is made applicable as of March 11, 2020.

UPDATE -

The OTR will automatically waive interest and penalties that would ordinarily be assessed for failure to timely pay sales and use tax due for the periods ending on February 29, 2020 and March 31, 2020. All vendors who are required to file sales and use tax returns on either a monthly or a quarterly basis are eligible for this relief, except for hotels and motels permitted to defer real property taxes under the Act. Any hotel or motel vendor registered with OTR with the NAICS code 72111, 721110, 72112 or 721120 is ineligible for this relief. Monthly filers must file a Form FR-800M as usual through MyTax.DC.gov on or before March 20, 2020 for the period ending February 29, 2020 and on or before April 20, 2020 for the period ending March 31, 2020. Quarterly filers must file a Form FR-800Q as usual through MyTax.DC.gov on or before April 20, 2020 for the period ending March 31, 2020. All eligible vendors must pay in full all sales and use taxes due for periods ending on February 29, 2020 and March 31, 2020 on or before July 20, 2020. Failure to pay in full by July 20, 2020 will result in interest and penalties accruing from the original payment due dates. (Release, D.C. Office of Tax and Revenue, 03/20/2020.)

 

Florida

Florida’s Department of Revenue plans to offer flexibility on the deadlines of taxes due, including corporate income taxes and sales taxes, the governor has said.

Update 3/27

This order only applies to: sales and use tax, tourist development tax, new tire fees, rental car surcharge, prepaid wireless E-911 fee, lead acid battery fees, and dry-cleaning gross receipts.  • The Department will waive penalties and interest for late payments for the February 2020 Reporting Period, which was due on or before March 20, 2020, as long as those taxes are reported and remitted by March 31.  • For taxpayers adversely affected by the COVID-19 outbreak, the March 2020 Reporting Period deadlines will be extended from April 20 to April 30.  • For taxpayers not adversely affected by the COVID-19 outbreak, the March 2020 Reporting Period deadline will continue to be April 20.  • Adversely affected is defined as:  o The business closed in March 2020 in compliance with a state or local government order issued in response to the COVID-19 outbreak and following the closure had no taxable transactions for the taxes listed in paragraph 2.8. above; or o The business experienced sales tax collections in March 2020 that are less than 75% of March 2019 sales tax collections; or o The business was established after March 2019; or o The business is registered with the Department to file quarterly.

 

 

Hawaii

Hawaii.  In its March 20, 2020 COVID-19 Operational Status update, the Department of Revenue stated that all due dates are presently unchanged. 

 

Illinois

The Illinois Department of Revenue issued an informational bulletin to all registered Illinois retailers operating eating and drinking establishments. The Department is waiving all penalties and interest that would have been imposed on sales tax payments for qualified taxpayers. Eligible taxpayers are taxpayers who operate eating and drinking establishments that incurred a total sales tax liability of less than $75,000 in calendar year 2019. Qualified taxpayers will not be charged penalties or interest on late payments for payments that are due in the February, March and April 2020 reporting periods. For most qualified taxpayers, the Department will automatically waive penalties and interest, but if a taxpayer thinks they received a notice from the Department owing interest and penalties, in error, then the taxpayer can respond to the notice with a waiver request. Taxpayers must still file Form ST-1 for each reporting period. Taxpayers must pay their liabilities due in March, April, and May 2020, for liabilities reported on Form ST-1, as follows: 1/4 of the liability for February, March, and April 2020 reporting periods is due May 20, 2020; 1/4 of the liability for February, March, and April 2020 reporting periods is due June 22, 2020; 1/4 of the liability for February, March, and April 2020 reporting periods is due July 20, 2020; and 1/4 of the liability for the February, March, and April 2020 reporting periods is due August 20, 2020. ( Illinois Dept. of Rev. Info. Bulletin No. FY 2020-23, 03/01/2020 .)

 

Lousiana

The Louisiana Department of Revenue is providing filing and payment extension relief for certain taxes due March 20, 2020. The February 2020 sales tax returns and payments and excise tax returns and payments for Wine Shipped Direct to Consumers and the Louisiana State and Parish and Municipal Beer Tax that are due March 20, 2020, are extended to May 20, 2020. This is an automatic extension and no extension request is necessary. The Department will waive delinquency penalties and compromise interest associated with delinquent sales and excise tax remittances provided the return and payment are received by the extended due date of May 20, 2020. ( Louisiana Revenue Information Bulletin No. 20-008, 03/19/2020 ; News Release, Department of Revenue Extends State Sales Tax Deadline Due to Coronavirus Public Health Emergency, Louisiana Department of Revenue, 03/19/2020 .)

New Orleans -

This is an automatic extension and no extension request is necessary. Taxpayers cannot utilize the Parish E-File filing system to take advantage of this filing and payment extension relief for the Louisiana state sales tax return.

 

Maryland

 

Maryland

Due to the coronavirus (COVID-19), filing and payment has been extended to July 15, 2020 for sales and use tax returns for sales taking place in February, March, April, and May 2020. Interest and penalties are waived if filed and paid by the extension date. Separate returns reflecting each filing period should be filed rather than a combined return.  Businesses who paid their Maryland sales and use taxes for March 2020 early can request a refund of their payment by emailing taxpayerrelief@marylandtaxes.gov or by calling (410) 260-4020.

 

Massachusetts

Massachusetts. The Massachusetts Department of Revenue has adopted an emergency regulation amendment (adding section (7) to to 830 CMR 62C.16.2, Sales and Use Tax Returns and Payments), that suspends return filing and payment remittance obligations for certain vendors during the COVID-19 state of emergency. Specifically, the sales and use tax filing and payment schedule for vendors, whose cumulative sales and use tax liability in the 12-month period ending February 29, 2020 is less than $150,000, will be as follows: Returns and payments due during the period beginning March 20, 2020 and ending May 31, 2020, inclusive, will be suspended. All such returns and payments will be due on June 20, 2020. The suspension does not apply to marijuana retailers, marketplace facilitators or vendors selling motor vehicles who have to continue to file returns and make payments.

The Department has adopted an emergency regulation amendment (adding new subsection (11)(g) to 830 CMR 64G.1.1, Room Occupancy Excise) which suspends return filing and payment remittance obligations for certain operators during the COVID-19 State of Emergency declared by the governor. Specifically, the filing and payment schedule for operators, whose cumulative liability in the 12-month period ending February 29, 2020 is less than $150,000, will be as follows. Returns and payments due during the period beginning March 20, 2020 and ending May 31, 2020, inclusive, will be suspended. All such returns and payments, including any local option amount will be due on June 20, 2020. The suspension does not apply to intermediaries that must continue to file returns and make payments.

The Department will waive any late-file or late-pay penalties imposed under  Mass. Gen. L. Ch. 62C § 33  for returns and payments due during the period March 20, 2020 through May 31, 2020, for the following: (1) vendors with meals tax return and payment obligations pursuant to G.L. c. 62C, § 16 that do not otherwise qualify for relief announced in Emergency Regulation 830 CMR 62C.16.2(7) promulgated by the Department on March 19, 2020 (see above); and (2) operators and intermediaries with room occupancy excise return and payment obligations that do not otherwise qualify for relief announced in Emergency Regulation 830 CMR 64G.1.1(11)(g) promulgated by the Department on March 19, 2020 (see above). Only penalties are being waived; statutory interest will continue to accrue. To be eligible for a penalty waiver, vendors, operators and intermediaries must file their returns and remit payments on or before June 20, 2020. The penalty waiver is limited to the taxpayers and tax periods outlined above. Applications for waiver of penalties for sales tax other than sales tax on meals, or other circumstances not covered above, will be handled on a case-by-case basis based on reasonable cause. ( Massachusetts Technical Information Release No. 20-2, 03/19/2020

 

Michigan

Michigan - Executive Order 2020-33 declared both a state of emergency and state of disaster across Michigan related to the spread of the novel coronavirus (COVID-19).  In recognition of the continued disruption of businesses required to file returns and remit sales, use, and withholding taxes, the Department of Treasury is waiving penalty and interest for the late payment of tax or the late filing of any monthly or quarterly return due on April 20, 2020.  The waiver will be effective for a period of 30 days; therefore, any monthly or quarterly payment or return currently due on April 20, 2020 may be submitted to the Department without penalty or interest through May 20, 2020.  
This waiver applies to the 2020 first quarter return that is required to be filed with the Department on April 20, 2020. Taxpayers required to remit tax with the 2020 first quarter return may therefore submit the payment and return to the Department without penalty or interest through May 20, 2020.  
This waiver also includes sales, use, and withholding returns or payments due on April 20, 2020 as a result of the previous 30-day waiver of penalty and interest for payments or returns due on March 20, 2020 (See Notice). Taxpayers originally required to remit tax and file returns on March 20, 2020 therefore have until May 20, 2020 to remit tax and fire returns without penalty and interest.  
Taxpayers may still remit tax and file a return as of the original due date and are encouraged do so.  However, penalty and interest for any failure to do so will automatically be waived in accordance with this Notice.  The waiver is limited to sales, use, and withholding returns and payments due on April 20, 2020. Any payment or return otherwise due after that date will not be eligible for the current waiver.  The waiver is not available for accelerated sales, use or withholding tax filers.  Those taxpayers should continue to file returns and remit any tax due as of the original due dates.  

The Department of Treasury is waiving penalty and interest for the late payment of tax or the late filing of the monthly and quarterly returns due on 5/20/2020. Any monthly or quarterly return or payment currently due on 5/20/2020 may be submitted to the Department without penalty or interest through 6/22/2020. This waiver is applicable to any payment or return for which penalty and interest has previously been waived through 5/20/2020. This waiver therefore includes any monthly or quarterly payments or returns originally due on either 3/20/2020 or 4/20/2020. Accordingly, for quarterly return filers, the 2020 first quarter return and payment that was originally due 4/20/2020 may now be filed without penalty or interest through 6/22/2020. Likewise, for monthly return filers, the monthly returns and payments originally due on March 20, April 20, and May 20, 2020 may now be filed be filed without penalty or interest through 6/22/2020. Any payment or return otherwise due after that date will not be eligible for the current waiver. The waiver is not available for accelerated sales, use, or withholding tax filers. Those taxpayers should continue to file returns and remit any tax due as of the original due dates.
The Department of Treasury has issued a notice establishing a general waiver of penalty and interest for any late payment of sales, use, and withholding (SUW) tax otherwise due on June 22, 2020 for non-accelerated monthly and quarterly tax filers that will remit tax on an installment basis over a period not to exceed 6 months as prescribed in the notice.
Governor Gretchen Whitmer's Executive Order 2020-26 (COVID-19), 03/27/2020, which extended the deadline for filing and paying the state income taxes due in April 2020 until July 2020 does not apply to sales or use tax or any other tax that is not collected under the Michigan Income Tax Act or the City Income Tax Act.
Interest and penalty waived for any sales, use, withholding monthly returns or payments due 5/20/2020 if filed or remitted by 6/22/2020; on 5/26/2020, Department announced a general waiver of penalty and interest for any late payment of sales, use, and withholding (SUW) tax otherwise due on 6/22/2020 for non-accelerated monthly and quarterly tax filers that will remit tax on an installment basis over a period not to exceed 6 months updated on 05/29/2020 Interest and penalty waived for any sales, use, withholding monthly returns or payments due 5/20/2020 if filed or remitted by 6/22/2020; on 5/26/2020, Department announced a general waiver of penalty and interest for any late payment of sales, use, and withholding (SUW) tax otherwise due on 6/22/2020 for non-accelerated monthly and quarterly tax filers that will remit tax on an installment basis over a period not to exceed 6 months

 

Minnesota

ONLY Identified businesses in Executive Order 20-04 with a monthly Sales and Use Tax payment due March 20, 2020, will have until April 20 to make that payment. These customers should still file their return by March 20. At this time, this grace period for penalty and interest is only for monthly filers and only for the March 20 payment. Identified businesses can request additional relief from penalty and interest for reasonable cause after April 20.  Identified businesses with a monthly Sales and Use Tax payment due April 20, 2020, now have until May 20, 2020, to make that payment. These businesses should still file their returns by the due dates but do not have to make payments until May 20, 2020. https://mn.gov/governor/assets/2020_03_16_EO_20_04_Bars_Restaurants_tcm1055-423380.pdf

 

 

 

Mississippi

The Mississippi Commissioner has statutory authority to extend all sales-use and local tax levies by only one month without requiring the imposition of interest. At this time, the Department has not extended the time to file returns, but the Department is agreeing to delay the imposition of interest and penalties on any unpaid tax balance for the period covered by the presidentially-declared national emergency effective March 15, 2020 until the end of the national emergency. Additionally, the Department's audit staff is continuing work on open audits and will resolve issues to minimize audit controversies. The Department will abate penalty and interest on any audits closed during the national emergency period and where the taxpayer agrees to settle the audit without appeal and pay the tax due. The Department will also work with taxpayers to extend deadlines for the production of records and will commit to executing extensions where needed. (Mississippi Department of Revenue Response to Requests for Relief, Miss. Dept. Rev., 03/26/2020.)

 

New York

New York - The Department of Taxation and Finance has issued an Important Notice alerting sales tax filers that the Department is permitted to waive penalty and interest on late sales tax return filings and payments due to COVID-19. Under specified circumstances, such as key employees who were treated or suspected of having COVID-19, or because tax records were not available due to the virus, affected filers must file and pay the tax due with 60 days of the due date to obtain the relief. The Department notes, however, that monthly sales tax filers, and participants in the Promptax program for sales and use tax or prepaid sales tax on fuel, are not eligible for the relief. The notice also provides information on how affected taxpayers can obtain the relief. (New York Special Tax Department Notice No. N-20-1, 03/01/2020.)

 

 

North Carolina

  The North Carolina Department of Revenue has issued an important notice to inform taxpayers who have been affected by COVID-19 of a limited-time waiver of certain penalties. On March 10, 2020, North Carolina Governor Roy Cooper signed Executive Order 116 declaring a state of emergency in response to COVID-19. The Secretary of Revenue has become aware that, because of COVID-19, some taxpayers may not be able to meet certain filing or payment requirements. In response, the Secretary has elected to waive the following penalties: the penalty for failure to obtain a license; the penalty for failure to file a return; the penalty for failure to pay tax when due; and the penalties regarding informational returns. The waiver applies to the failure to timely obtain a license, file a return, or pay a tax that is due between March 15, 2020, and March 31, 2020, if the license is obtained, the return or extension application is filed, or the tax is paid by April 15, 2020. The waiver will be considered a waiver for special circumstances. The waiver will not be considered a waiver for good compliance that can only be granted once every three years per tax type. Affected taxpayers who cannot meet their filing or payment requirement as a result of COVID-19 should complete Form NC-5500 (Request to Waive Penalties) and write “COVID-19” on the top of the form. For affected taxpayers who do not have access to Form NC-5500, they can request a penalty waiver by attaching a letter containing: the taxpayer’s name; address; SSN or FEIN; Account ID; and the tax type and tax period for which the taxpayer seeks waiver of penalty. Form NC-5500 or the letter should be mailed to the North Carolina Department of Revenue, Customer Service, P.O. Box 1168, Raleigh, NC 27602. (Important Notice: Department of Revenue Provides Penalty Relief to Persons Affected by Novel Coronavirus Disease, N.C. Dept. of Rev., 03/17/2020.)

Update  -

The North Carolina Department of Revenue has issued an important notice announcing the expansion of its COVID-19 tax penalty relief from March 15, 2020 through July 15, 2020 for the sales and use tax penalties for failing to obtain a license, to file a return, or to pay taxes, if the corresponding license is obtained, the return is filed, or the tax is paid on or before July 15, 2020. Taxpayers do not need to request a penalty waiver to qualify for this relief. However, if a taxpayer receives a proposed assessment of a penalty covered by the relief granted in this notice, the taxpayer should contact the Department by phone, at 1-877-252-3052, or by writing to the Department at the following address: North Carolina Department of Revenue, Customer Service, P.O. Box 1168, Raleigh, NC 27602. Previously, the Department’s COVID-19 penalty relief was for certain taxpayers with returns or payments due between March 15, 2020 and March 31, 2020, that provided a new due date of April 15, 2020. (Important Notice: Department of Revenue Expands Penalty Relief for Taxpayers Affected by Coronavirus Disease 2019 (COVID-19), N.C. Dept. of Rev., 03/31/2020.)

 

Oregon

In Oregon, initial quarterly payments for the new Corporate Activity Tax are due April 30. Understanding “that the pandemic may impact commercial activity, up or down, to an extent that makes it difficult for businesses to estimate their first payment,” the department won’t assess underpayment penalties to taxpayers making a “good faith effort” to estimate first-quarter payments

 

 

Pennsylvania

To assist the business community as the commonwealth responds to the COVID-19 outbreak, the Department of Revenue is waiving penalties for businesses that are required to make Accelerated Sales Tax (AST) prepayments by the deadline of Friday, March 20.  Additionally, for April sales tax payments, the department is waiving the AST prepayment requirement and asking businesses to simply remit the sales tax that they have collected in March. The Department is also waiving the AST prepayment requirement for April, May and June payments, and asking businesses to simply remit the sales tax that they collected in the previous month.

 

 

Puerto Rico

 

AD 20-09 further extends the due dates for the monthly SUT return for March, April and May. The due date for the return due for March 2020 is extended from 20 April 2020 to 20 May 2020. The due date for the return due for April is extended from 20 May 2020 to 22 June 2020, and the due date for the return due for May is extended from 22 June 2020 to 20 July 2020. Additionally, the PRTD extended the due dates for the Form SC 2915D, Monthly Import Tax Return, and the corresponding payments for the months of March, April and May. The due date for the Monthly Import Tax Return and payment for March 2020 is extended from 10 April 2020 to 11 May 2020, and the due date for the return and payment for April 2020 is extended from 10 May 2020 to 10 June 2020. The due date for the return and payment for May 2020 is extended from 10 June 2020 to 10 July 2020. The PRTD also stated that it will not impose penalties for noncompliance with the biweekly SUT payments for the months of March, April, May and June 2020, provided the full amount of the SUT due for those months is paid with the monthly SUT returns.

 

South Carolina

South Carolina’s Department of Revenue is offering more time to file returns and pay taxes due April 1 to June 1. Returns and payments due between those dates are now due June 1. Penalty and interest will not be charged if payment is made by June 1. This includes South Carolina Sales and Use Tax. The state is automatically applying this relief for all applicable returns and payments; you don't need to take any additional action.

 

 

Tennessee

 

Taxpayers can request either a penalty waiver on a payment plan and such requests will be evaluated on a case by case basis.

Texas

 

Texas - Contact the Enforcement Hotline at 800-252-8880 to learn about your options for remaining in compliance and avoiding interest and late fees on taxes due.
In addition, we have a variety of online tools for businesses seeking assistance.

 

Vermont 

Vermont.  In response to the COVID-19 emergency, the Vermont Department of Taxes announced that the filing and payment due dates for the following Vermont taxes have been extended from April 15, 2020 to July 15, 2020: corporate income tax, personal income tax, homestead declarations and property tax claims, and fiduciary income tax. This includes any tax year 2020 estimated payments that were due for these taxes on April 15, 2020. Furthermore, taxpayers who are unable to meet the March 25, 2020 and April 25, 2020 sales and use tax deadlines will not be charged any penalty or interest on these taxes for late submissions. ( Press Release: Vermont Department of Taxes Releases Guidance on Upcoming Vermont Tax Due Dates, Vt. Dept. of Taxes, 03/23/2020 .)

 

Virginia

The Department issued a bulletin with important information for those affected by the COVID-19 crisis. The Department will consider requests from sales tax dealers for an extension on filing and paying the February 2020 sales tax return, which is due on March 20, 2020. If a request is granted, then the filing and payment will be April 20, 2020, with a waiver of penalties. However, even with an extension, interest will accrue. Dealers should request a waiver using the Department's secure email system or by writing to the following address: Virginia Tax, Office of Customer Services, P.O. Box 1115, Richmond, VA 23218-1115. ( Virginia Tax Bulletin 20-3, Va. Dept. of Tax'n., 03/19/2020 .)

 

 

Washington

Washington state’s Department of Revenue will provide extensions for filing and paying tax returns (even after the due date) 60 days for monthly filers and 30 days for quarterly and annual filers. The department will delay issuing new compliance assessments for the next 30 days and reassess then and will work with taxpayers impacted by COVID-19 to adjust payment plan amounts or extend payment dates. The Department will also delay auditing businesses that have gross income of less than $5 million in the past year (among other conditions); for audits in progress, the state may also be able to provide an extension of up to 60 days.

 

 

 

Wisconsin

The Wisconsin Department of Revenue has issued a release announcing that small businesses can immediately request an extension until April 30, 2020 to file sales and use tax returns due March 31, 2020 and until June 1, 2020 for sales and use tax returns due April 30, 2020, in response to the COVID-19 pandemic. In addition, the Department will not assess late filing fees or penalties if sales and use tax returns are filed by April 30 or June 1; 12% interest will accrue beginning on the due date, unless the legislature changes the law to allow the Department to waive interest. The Department will lower the interest rate from 18% to 12% on unpaid balances on sales and use tax returns due March 31 and April 30, 2020. Taxpayers are directed to contact DORTOBReturnAdjustment@wisconsin.gov  after they receive a bill to request a reduction of the interest rate. Other steps the Department has taken to help challenges faced by small businesses include installment payment plans for amounts reported on returns but unpaid, relaxing collection activities on delinquent amounts due between now and July 15, 2020 (unless suspending the collection activity would compromise the state's ability to collect the amount due), and delaying the start of most new audits. (News Release: Help for Small Businesses in Response to COVID-19, Wis. Dept. Rev., 03/27/2020.) The Wisconsin Department of Revenue has issued a proposed guidance document regarding sales and use tax return filing and payment due dates in light of the COVID-19 pandemic. Taxpayers may request a one-month extension to file a sales and use tax return by requesting an extension before the unextended due date of the return through My Tax Account or by emailing DORRegistration@wisconsin.gov  The email request must include the taxpayer's name, address, identification number, and the reporting period for which the extension is requested. However, there is no extension of time to pay sales and use taxes to the Department. Interest will be imposed during the one-month extension period at a rate of 1.0%. (Wisconsin News for Tax Practitioners No. 03/25/2020, 03/25/2020.)

 

 

Canada

The CRA will allow all businesses to defer, until the end of June 2020, any GST/HST payments or remittances that become owing on or after March 27, 2020, and before June 2020. This means that no interest will apply if your payments or remittances are made by the end of June 2020. The deadline for businesses to file their returns is unchanged. Those who are able to, should continue to file their GST/HST returns on time reporting their net tax for the reporting period to help facilitate tax compliance and administration. However, recognizing the difficult circumstances faced by businesses, the CRA won’t impose penalties where a return is filed late provided that it is filed by June 30th. https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/frequently-asked-questions-gst-hst.html#toc1

Manitoba

Manitoba has extended the deadline for certain monthly RST returns to June 22, 2020 (from April 20 and May 20, 2020). This extension applies to small- and medium businesses with monthly RST remittances of no more than $10,000 per month. In addition, Manitoba has extended the deadline for businesses that file RST returns quarterly to    June 22, 2020 (from April 20, 2020).In addition, Manitoba advises that where these eligible businesses were not able to file and remit their February RST return by the due date on March 20, 2020, they will not be subject to late filing penalties or interest until after June 22, 2020. However, interest will continue to apply on all outstanding tax debts established before the March remittance deadlines

Saskatchewan

Saskatchewan businesses who are unable to remit their PST due to cashflow concerns will have three-month relief from penalty and interest charges. Businesses that are unable to file their provincial tax return(s) by the due date may submit a request for relief from penalty and interest charges on the return(s) affected.

 

Quebec

There are concessions for QST granted - awaiting Provincial publication for details

 

British Columbia

Tax PST returns and payments with due dates after March 23, 2020 and before September 30, 2020 will now be due September 30, 2020.  This deferral is automatic and no action, such as an application, is required on your part.

 

 

The nation’s pandemic emergency is changing sales and use taxes as much as it is every other part of society. Let TaxConnex help you stay informed with our Twitter and email alerts, and contact us to learn about the latest developments in sales-tax nexus and what they mean to you and your company.

 

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