Avalara > Blog > Nevada > Coronavirus tax relief roundup

COVID-19 tax relief roundup

  • Apr 7, 2020 | Gail Cole

covid-19-state-tax-relief

Updated April 3, 2020, at 7:40 a.m. ET. Orginally published March 16.

As the new coronavirus (COVID-19) continues to spread globally, governments worldwide are trying to figure out the best way to bolster the slowing economy. In some countries, that involves tax filing and payment extensions and even temporary rate reductions. Other nations, including the United States, are just beginning to respond.

So that you can focus on your family and business rather than hunt for information, we’re compiling tax news related to the COVID-19 outbreak in this roundup. It will be updated regularly as more information becomes available.

For the latest international tax news related to the outbreak, see World turns to VAT cuts on coronavirus Covid-19 threat and the VATlive blog. Avalara Vice President of Global Affairs Richard Asquith has his finger on the pulse of global coronavirus-related tax relief.

Below we've broken out state sales tax relief at a glance, which gives a broad overview of the states offering sales tax filing extensions, payment extensions, or relief from penalties or interest. The subsequent chart provides more details.

Jump to federal tax news and Canadian tax news related to COVID-19.

State sales tax relief at a glance

As of April 7, 2020

State Filing extension Payment extension Penalty waived Interest waived
Alabama    
California
Colorado
Connecticut
Florida  
Illinois    
Louisiana
Maryland
Massachusetts
Michigan
Minnesota
New York
North Carolina      
South Carolina  
Vermont
Virginia  
Washington - monthly filers  
Washington - quarterly filers
Washington - annual filers
Washington, D.C.
Wisconsin    

State tax relief

The chart above provides an overview of the sales tax relief offered by states. The following chart goes into more detail about the tax relief, especially sales tax relief, available for businesses and individuals impacted by COVID-19. Relief may include filing extensions as well as interest and penalty waivers for a host of taxes, including lodging tax and sales and use tax. Click on the links for more details.

State Tax relief

Alabama

Updated 4.2

Sales tax relief. Late payment penalties for February, March, and April state sales tax payments are waived through June 1, 2020, for:

  • Small retail businesses with monthly retail sales averaging $62,500 or less during the previous calendar year; and
  • Taxpayers registered as engaging in NAICS Sector 72 business activities.

This does not waive or extend normal filing requirements. Qualifying taxpayers may file sales tax returns without paying the tax due. Note that this does not apply to local sales tax liabilities. 

Contact non-state administered localities directly to see if they are offering similar relief. Requests for relief for state-administered localities will be reviewed individually and can be submitted to localtaxunit@revenue.alabama.gov.

This relief does not apply to interest.

Lodging tax relief. Late payment penalties for state transient occupancy tax are waived through June 1, 2020, for businesses unable to timely pay their February, March, and April lodgings tax. This does not extend the filing date for lodgings tax returns, apply to local lodgings taxes, or waive interest.

State income tax reliefThe filing and payment deadline is extended from April 15 to July 15, 2020 for:

  • State income taxes  
  • Financial Institution Excise Tax (FIET)
  • Business Privilege Tax (BPT). 

See COVID-19 Outbreak Updates.

Alaska

Updated 4.2

State tax relief. The due dates for all taxes administered by the Alaska Department of Revenue Tax Division, except Oil and Gas Production taxes, are extended from March 31 to July 15, 2020. Penalties and interest will not be assessed if returns and payments for the affected periods are received on or before July 15, 2020. Additional details.

This does not apply to local sales and use taxes, which are administered by local governments in Alaska.

Arizona

State income tax relief. The filing and payment deadline for state income taxes is extended from April 15 to July 15, 2020.

See Arizona Department of Revenue Extends Income Tax Deadline to July 15, 2020.

Arkansas

State income tax relief. The filing and payment deadline for state income taxes is extended from April 15 to July 15, 2020.

All other taxes must still be reported and paid according to existing Arkansas law. See COVID-19: DFA FAQs.

California

Updated 4.7

Sales tax relief. Effective April 2, 2020, businesses with less than $5 million in taxable annual sales can defer up to $50,000 of sales and use tax liability. Deferred liabilities will be due in 12 equal monthly installments. No interest or penalties will be assessed against the liability. Additional details.

Effective March 30, small businesses filing a return for less than $1 million in tax automatically have until July 31, 2020, to file and pay sales and use tax for Q1, 2020. The same provisions apply to other tax and fee programs administered by the CTFA. Qualifying taxpayers don't need to file a request for extension or request relief from penalty or interest. 

Taxpayers also have an additional 60 days to seek refund claims or an appeal of a CDTFA tax determination. Additional information.

Filing and payment extensions or penalty and interest waivers maybe available for other businesses directly affected by COVID-19. See State of Emergency Tax Relief.

State income and other tax relief. The filing and payment deadline for state income taxes and various other others is extended to July 15, 2020. See California Franchise Tax Board.

See also: CDTFAEmergency and Disaster Assistance for EmployersSan Francisco economic relief

Colorado

Updated 4.7

Sales tax relief. The April 20, 2020, filing and payment due date for sales tax has been extended to May 20, 2020. This is a one-time extension for state and state-administered sales taxes; it does not apply to self-collecting home-rule jurisdictions. Penalties and interest will be waived provided taxpayers file returns and remit the full amount of state and state-administered sales tax due April 20 on or before May 20. Additional details.

Vail has suspended sales tax collections until future notice. 

Grand Junction: Between now and April 20, 2020, businesses can request a temporary refund of sales and lodging taxes paid to the City in March. All refunded taxes need to be paid back to the City by July 31, 2020. Request the refund here: https://gjcity.seamlessdocs.com/f/EmerRefund. Quarterly filers can request a deferment of Q1 2020 taxes using the same link between now and May 20. 

This temporary refund only applies to City sales, use and lodging taxes paid. Contact gjsalestax@gjcity.org or 970-244-1521 with questions.

State income tax relief. The filing and payment deadline for state income taxes is extended from April 15 to July 15, 2020. There's also an automatic six-month extension for all income tax returns that were due April 15, 2020, which now are due on or before October 15, 2020. COVID-19 Updates.

Connecticut

Updated 4.2

Sales tax relief. Taxpayers that have $150,000 or less in annual sales tax liability (January 1, 2019, through December 31, 2019) qualify for an automatic extension of time to file and pay. 

  • Monthly sales tax returns and payments due March 31 and April 30 are extended to May 31, 2020.
  • Quarterly sales tax returns and payments due April 30 are extended to May 31, 2020.

Taxpayers who file and pay by the extended deadlines will not be subject to penalties or interest. Additional details.

Room occupancy tax. Taxpayers that have $150,000 or less in annual sales tax liability qualify for an automatic extension of time to file and pay. 

  • Monthly room occupancy tax returns and payments due March 31 and April 30 are extended to May 31, 2020.
  • Quarterly room occupancy tax returns and payments due April 30 are extended to May 31, 2020.

Taxpayers who file and pay by the extended deadlines will not be subject to penalties or interest. Additional details.

State income tax relief. The filing and payment deadline for state personal income taxes is extended from April 15 to July 15, 2020. This extension applies also to Connecticut estimated personal income tax payments for the first and second quarters of 2020. See the Department of Revenue Services notice.

Filing and payment deadlines for the following taxes are extended as follows

  • Connecticut Pass-Though Entity Tax Return: Filing due April 15; payment due June 15, 2020
  • Connecticut Unrelated Business Income Tax Return: Filing and payment due June 15, 2020
  • Connecticut Corporation Business Return: Filing and payment due June 15, 2020

Taxpayers may email DRS@po.state.ct.us or call 860-297-5962 (860-297-4911 for the hearing impaired) to discuss their specific situation. See also Business Resources.

Delaware Income tax relief. The filing and payment deadline for state income taxes is extended from April 15, to July 15, 2020. See COVID-19 Filing Extensions.
Florida

Sales tax relief. The filing and payment due date for taxes collected in February is extended to March 31, 2020. The filing and payment due date for taxes collected in March is extended to April 30, 2020. Electronic payments must be inititated the business day before the due date to meet the deadline.

The extension applies to: sales and use tax; tourist development tax (for counties administered by the DOR); new tire fees; rental car surcharge; prepaid wireless E-911 fee; lead acid battery fees, and dry cleaning gross receipts fees.

Taxpayers not adversely affected by COVID-19 must file and pay on or before April 20, 2020. See Taxpayer Info COVID-19.

Property tax relief. The property tax due date is extended from March 31 to April 15, 2020. See Order of Emergency Waiver #20-52-DOR-001.

Taxpayers adversely affected by COVID-19 should send questions to COVID19TAXHELP@floridarevenue.com.

Georgia State income tax relief. The filing and payment deadline for state individual income taxes is extended from April 15, to July 15, 2020.
Hawaii

State income tax relief. The filing and payment deadline for state income taxes due April 20–June 20 is postponed to July 20, 2020. This does not apply to estimated income tax payments.

Other taxes. Filing and payment dates for all non-income taxes are unchanged. See the Hawaii Department of Taxation.

Idaho State income tax relief. The filing and payment deadline for state income tax is extended from April 15 to June 15, 2020. Penalties and interest won't apply provided taxpayers file returns and pay the income tax due by June 15. See the Idaho Tax Commission News Release.

Illinois

Updated 4.2

Sales tax reliefAutomatic short-term relief from penalties and interest for qualifying retailers operating eating and drinking establishments that have late sales tax payments due to COVID-19.

Applies to businesses with less than $75,000 in total sales tax liability in calendar year 2019.

To qualify for the relief, taxpayers must pay their liabilities due in March, April, and May 2020 on four dates starting on May 20, 2020:

  • 1/4 of the full liability is due Mary 20
  • 1/4 of the full liability is due June 22
  • 1/4 of the full liability is due July 20
  • 1/4 of the full liability is due August 20

Additional information.

Exemption certificate renewal extension. IDOR is automatically extending the E-number expiration dates for certificate holders whose certificates expired within 60 days prior to or following March 21, 2020 (the date of the Governor’s “Stay At Home” Order). Additional details.

State income tax relief. The filing and payment deadline for state income tax is extended from April 15 to July 15, 2020. 

Other tax relief. Chicago is extending to April 30 the tax payment due dates for amusement tax, bottled water tax, checkout bag tax, hotel accommodation tax, parking tax, and restaurant tax. Details.

Cook County is providing various relief.

See COVID-19 Information for Illinois Taxpayers.

Indiana

State income tax relief. Individual tax returns and payments, along with estimated payments, originally due by April 15, 2020, are now due July 15, 2020. 

Corporate tax returns and payments, along with estimated payments originally due by April 15 or April 20 are now due on or before July 15, 2020. Those originally due on May 15, 2020, are now due on August 17, 2020. See DOR Announces Filing and Payment Extensions.

Other tax relief. All other tax return filings and payment due dates remain unchanged, though affected taxpayers may request an extension through the Indiana Department of Revenue. 

Iowa

State income tax relief. Taxpayers now have until July 31, 2020, to file individual, corporate, franchise, moneys and credits, estate and trust, partnership and S corporation returns. Certain withholding returns are now due April 10, 2020

No late-filing or underpayment penalties will be assessed for qualifying taxpayers who comply with the extended filing and payment deadlines. See Order 2020-01.

Kansas State income tax relief. The filing and payment date for state income taxes and privilege tax is extended from April 15 to July 15, 2020. This does not apply to estimated tax payments due April 15, 2020. See Executive Order No. 20-13.
Kentucky State income tax relief. The filing and payment date for state income taxes is extended from April 15 to July 15, 2020.
Louisiana

Sales tax relief. Affected businesses have until May 20 to file and pay sales and excise taxes due March 20. This is an automatic extension; the Louisiana Department of Revenue will waive delinquency penalties and compromise interest associated with delinquent sales tax remittances as long as the return and payment are received by May 20, 2020. See Revenue Information Bulletin No. 20-008.

State income tax relief. The filing and payment date for state income taxes is extended from April 15 to July 15, 2020.

Maine State income tax relief. The filing and payment date for state income taxes is extended from April 15 to July 15, 2020. Taxpayers are encourged to file and make payments on time if able to do so. See Maine Tax Alert March 2020 - #3.

Maryland

Updated 4.2

Sales (and other) tax relief. The filing and payment due date for the following February, March, and April taxes is extended to June 1, 2020: admissions and amusement tax; sales and use tax; withholding tax; alcohol, motor fuel, and tobacco excise taxes; and tire recycling and bay restoration fees. Interest and penalties will be waived for businesses that file and pay by June 1.

When ready to file and pay, file separate returns for each reporting period, as if they had been filed according to their original due dates. See COVID-19 Tax Alert.

State income tax relief. The filing and payment date for state income taxes is extended from April 15 to July 15, 2020, for all taxpayers. The due date for March quarterly estimated payments of 2020 taxes is also extended to July 15. COVID-19 Tax Alert.

Email taxpayerrelief@marylandtaxes.gov or call 410-260-4020 to discuss options.  

Massachusetts

Sales tax, meals tax, and occupancy tax relief. For businesses that paid less than $150,000 in regular sales taxes plus meals taxes in the year ending February 29, 2020, returns and payment of regular sales tax, meals tax, and room occupancy taxes due March 20–May 31 are suspended. All such returns and payments, including any local option amounts, are due June 20, 2020. All penalties and interest that would otherwise apply will be waived. This does not apply to intermediaries (e.g., marketplace facilitators). See 830-CMR-64g.1.1.

The Massachusetts Department of Revenue (DOR) will waive late-file or late-pay penalties for returns and payments for certain operators and intermediaries that don't otherise qualify for relief. Interest will continue to accrue. See TIR 20-2

Applications for waiver of penalties for sales tax other than sales tax on meals, or other circumstances, will be handled on a case-by-case basis based on reasonable cause

State income tax relief. The filing and payment date for personal income tax is extended from April 15 to July 15, 2020

Massachusetts Department of Revenue COVID-19 Response

Michigan

Sales tax relief. Any return or payment of sales, use, and withholding tax due March 20, 2020, may be submitted to the Department without penalty or interest through April 20, 2020. This is not available for accelerated sales, use, or withholding filers.

Notice: Penalty and Interest Waived for 30 Days

Minnesota

Sales tax relief. 30-day grace period for businesses identified in Executive Order 20-04. The department will not assess penalties or interest on sales and use tax payments due March 20, provided they're remitted by April 20, 2020.

State income tax relief. The filing and payment deadline for state income taxes is extended from April 15 to July 15, 2020.

See the Minnesota Department of Revenue Response to COVID-19.

Mississippi

Sales tax relief. There's no extension for sales and use tax or other tax types. However, the Mississippi Department of Revenue is delaying the imposition of interest and penalty on any unpaid tax balance for the period covered by the presidentially declared national emergency. See the Mississippi Department of Revenue, Extensions for the COVID-19 Pandemic and Mississippi Response to Requests for Relief.

State income tax relief. The filing and payment deadline for state income taxes is extended from to May 15, 2020. Withholding tax payments for the month of April are extended to May 15, 2020.

Missouri

State income tax relief. The filing and payment deadline for state income taxes is extended from April 15 to July 15, 2020. This also applies to individual and corporate estimated tax payments for tax year 2020, which are normally due April 15.

See the Missouri Department of Revenue News Release.

Montana

State income tax relief. The filing and payment date for state income taxes is extended from April 15 to July 15, 2020

Other tax relief. The Montana Department of Revenue Collections Bureau is assessing tax filing situations on a case-by-case basis and may allow deferral of payments for up to one month at a time. To be considered, contact the Collections Bureau at least one week prior to a payment due date. See the Montana Department of Revenue, Questions on Payment Plans.

Nebraska

State income tax relief. The filing and payment deadline for state income taxes is extended from April 15 to July 15, 2020. Governor Pete Ricketts encouraged Nebraskans not impacted by COVID-19 to file and pay by April 15.

Other tax relief. The Tax Commissioner may grant penalty or interest relief for Nebraskans having trouble meeting their state tax obligations because of COVID-19, depending on individual circumstances. To request relief, complete and mail a Request for Abatement of Penalty, Form 21, or Request for Abatement of Interest, Form 21A, with an explanation of how you were impacted.

Nevada

All Taxation offices are closed to the public until futher notice.

Nevada Tax Department

New Hampshire Taxpayers who have paid their business and dividends tax in full by the return due date are entitled to an automatic 7-month extension of the time to file your New Hampshire Business Tax or Interest & Dividends Tax return, which are due April 15, 2020. No extension form is required. See the New Hampshire Department of Revenue Administration.
New Mexico

State income tax relief. The deadline to file and pay personal and corporate income tax returns is extended from April 15 to July 15, 2020. The Taxation and Revenue Department (TRD) will not asses penalty or interest on personal, fiduciary, and corporate tax returns, return payments, and estimated payments filed and paid in full no later than July 15, 2020.

Pesonal, fiduciary and corporate income tax estimated payments due April 16–July 14, 2020, may be submitted without penalty no later than July 15, 2020. Interest will be due on payments made after their original due date. 

Withholding tax relief. Withholding tax returns and payments due March 25–July 25 may be submitted without penalty no later than July 25, 2020. Interest will be due on payments made after March 25. 

The extensions don't apply to gross receipts taxes, compensating tax, or other tax programs not specified above.

B-100.35 -Tax Relief for COVID-19 (Extension).pdf

New York

Sales tax relief. Quarterly and annual sales tax filers unable to file or pay by March 20 due to COVID-19 may request a waiver from penalty and interest. This relief is not available for sales tax vendors who file returns monthly or participants in the Promptax program for sales and use tax or prepaid sales tax on fuel. Returns must be filed and the amount due must be paid within 60 days of the due date. Additional details.

Other tax relief. New York City taxpayers may request a waiver of penalties on late-filed extensions or returns of business and excise taxes due March 16 - April 25. Interest must be paid on all tax payments due after the original due date. fm-20-2.pdf

State income tax relief. The filing and payment deadline for personal and corporation income tax returns is extended from April 15 to July 15, 2020. See NYS Tax Response to COVID-19.

North Carolina

Updated 4.2

Sales tax relief. Late Action Penalites will be waived for taxpayers affected by COVID-19 who fail to timely obtain a license, file a return, or pay sales and use tax due March 15 thorugh July 15, 2020. To qualify, taxpayers must obtain the license, file the return or extension application, and/or pay the tax by July 15, 2020.  

Taxpayers don't need to request a penalty waiver to qualify for this relief. Those that receive a proposed assessment of a penalty covered by this relief should contact the NCDOR by phone at 1-77-252-3052. See Important Notice COVID-19.

State income tax relief. The filing and payment due date for state income taxes and franchise taxes is extended from April 15 to July 15, 2020. See NCDOR Actions on COVID-19.

North Dakota

State income tax relief. The filing and payment due date for state income taxes and franchise taxes is extended from April 15 to July 15, 2020. This extension does not apply to other state taxes.

See COVID-19 Tax Guidance.

Ohio  State income tax relief. The filing and payment due date for state income tax is extended from April 15 to July 15, 2020. The July 15 deadline also applies to quarterly estimated income tax payments normally due April 15 and June 15. See Ohio Extending Income Tax Filing and Payment Deadline
Oklahoma

State income tax relief. The due date for Oklahoma income taxes is extended to July 15, 2020. Individual and other non-corporate filers may defer up to $1 million of income tax due without penalties or interest; corporate taxpayers may defer up to $10 million.

Other tax relief. Due dates for other tax types, including sales and withholding taxes, remain the same. See the Oklahoma Tax Commission Press Release, March 19, 2020.

Oregon

State income tax relief. The filing and payment due date for personal income taxes is extended from April 15 to July 15, 2020. Estimated tax payments for tax year 2020 are not extended. 

The filing due date for corporate income and excise taxes is extended from May 15 to July 15, 2020. The payment due date is extended to July 15, 2020. Returns due after May 15 are not extended. Estimated tax payments for tax year 2020 are not extended. See COVID-19 tax relief options and Q&A.

Fuel tax relief. Tax report due dates for the February 2020 monthly fuel tax reports are extended by two weeks.

The department may extend any statutory period of limiitation on any tax if taxpayers (or the state) are unable to take timely action due a state-declared emergency or action by the IRS.

Pennsylvania

Sales tax relief. The Pennsylvania Department of Revenue is waiving penalties for businesses required to make Accelerated Sales Tax (AST) prepayments by March 20, 2020. The AST prepayment requirement is waived for April sales tax payments: Businesses should simply remit the sales tax they collected in March. 

Tobacoo tax relief. All tobacco products dealer licenses that were set to expire February 29, 2020, are extended until further notice.

State income tax relief. The filing and payment date for state income taxes is extended from April 15 to July 15, 2020.

See the Pennsylvania Department of Revenue, COVID-19 Information.

Puerto Rico

The Puerto Rico Treasury Department (PRTD) is providing filing and payment extensions for income tax, sales and use tax, and other taxes. See Tax measures related to coronavirus.

Certain products helpful in combatting COVID-19 are temporarily exempt from sales and use tax

Rhode Island

State income tax relief. The filing and payment date for state income taxes is extended from April 15 to July 15, 2020.

Other. Filing and payment due dates are not extended as of March 20, but the Rhode Island Division of Taxation says taxpayers have "the express right to request that penalties by abated where there was no negligence or intentional disregard of the law." See COVID-19 Information.

South Carolina

Sales tax relief. Tax returns and payments due April 1–June 1 are now due June 1, 2020. Interest and penalties won't be charged if payment is made by June 1 for admissions tax, sales and use tax, and other taxes filed and paid with SCDOR. The tax relief will be automatically applied for all applicable returns and payments; taxpayers don't need to take additional action.

Charleston has suspended collection of hospitality and accommodations taxes for 90 days. 

State income tax relief. The filing and pyament date for state income taxes is extended from April 15 to July 15, 2020. See the South Carolina Department of Revenue, Emergencies.

South Dakota

All DOR offices are closed until March 23, 2020. Staff is available at 800-829-9188 or via chat.

SDDOR

Tennessee State income tax. The due date for filing and paying franchise tax, excise tax, and the Hall income tax is extended from April 15 to July 15, 2020. Interest and penalties won't apply to returns filed and payments made on or before July 15. The extension also applies to quarterly estimated payments originally due April 15. See Tennessee Department of Revenue COVID-19 Updates.

Texas

Updated 4.3

Sales tax relief. The Texas Comptroller is urging businesses to file and pay sales taxes on time but it's offering short-term payment agreements to businesses struggling to pay the full amount of sales taxes collected. In most instances, it will also provide waivers of penalties and interest. Call the Enforcement Hotline at 800-252-8880 to learn about available options. See COVID-19 News.

Franchise tax relief. The filing and payment deadline for franchise tax is autoamtically extended to July 15, 2020. Additional details.

Utah

State income tax relief. The filing and payment deadline for state income taxes is extended from April 15 to July 15, 2020.

Other. With regard to a possible extension for sales tax, Commissioner John Valentine indicated such a change would have to come from the legislature. See the Utah State Tax Commission News Release.

Vermont

Sales tax and meals and room tax relief. Businesses unable to meet the March 25 and April 25 filing deadlines for meals and room taxes or sales and use taxes will not be charged penalties or interest.

State income tax relief. The filing and payment deadline for state income taxes is extended from April 15 to July 15, 2020.

See the Vermont Department of Taxes, Coronavirus Update: Information for Taxpayers.

Virginia

Sales tax relief. Businesses may request an extension of the due date for filing and payment of February 20 sales tax returns due March 20. If granted, the Department will waive penalties for returns filed and taxes paid by April 20. Interest will not be waived.

The Department will consider requests for sales tax filing and payment extensions on a case-by-case basis. Additional details.

State income tax relief. For income tax payments due April 1–June 1, late payment penalties will automatically be waived so long as full payment is made by June 1. Interest will continue to accrue from the original due date. This does not provide a filing extenstion. Additional details.

Washington

Update 4.2

 

Sales tax and B&O tax reliefThe Washington Department of Revenue (DOR) requests all businesses file sales and use tax returns and B&O tax returns even if unable to pay.

Monthly filers: Request an extension for paying tax returns (even if the request is after the due date) by sending a secure email through their MyDOR account or by calling customer service at 360-705-6705.

Quarterly filers: The Q1, 2020 return is now due June 30, 2020.

Annual filers: The Annual 2019 return is now due June 15, 2020. 

Note: Extensions push out the due date but do not waive the tax owed. The DOR has the authority to waive interest through April 17, 2020. See Business Relief During COVID-19 Pandemic.

Other tax relief. The DOR will work with businesses that can't pay a broad range of taxes on time due to the COVID-19 outbreak. Tax deferrals for biotechnology and medical device manufacturing are also available. Businesses can request an extension or penalty waiver by sending a secure email in their My DOR account or by calling 360-705-6705.

The DOR will delay scheduling many audits and provide flexibility for audits already in progress.

The City of Seattle is deferring B&O tax collections for eligible businesses and offering immediate relief for small businesses impacted by COVID-19. See City of Seattle Press Releases

Washington, D.C.

Sales tax relief. Interest and late payment penalties of sales and use taxes will automatically be waived for periods ending February 29 and March 31 for all businesses (except hotels and motels), provided payment is made in full by July 20, 2020. All businesses must continue to timely file monthly and quarterly sales and use tax returns through MyTax.DC.gov to receive this benefit. See the Office of Tax and Revenue COVID-19 Emergency Sales and Use Tax Relief.

Real property tax relief. Hotels and motels have until June 30, 2020, to pay their first half tax year 2020 real property tax installment. 

State income tax relief. The deadline to file and pay 2019 District of Columbia individual and fiduciary income tax returns, partnership tax returns, and franchise tax returns is extended to July 15, 2020

See OTR Coronavirus Information and Guidance.

West Virginia

State income tax relief. The filing and payment date for state income taxes is extended from April 15 to July 15, 2020. This also applies to estimated tax payments for tax year 2020 that are due between April 15 and July 15, 2020. 

Property tax relief. Second-half 2019 ad valorem property tax normally delinquent on April 1 will now be delinquent if not paid by May 1, 2020. 2019 ad valorem property taxes may not be declared delinquent before May 2, 2020. 

See COVID-19 Response.

Wisconsin 

Sales tax relief. Small businesses can request an extension to file sales tax returns. The extension for returns due March 31 is April 30, 2020, and the extension for returns due April 30 is June 1, 2020. However, payments are due March 31 and April 30, and interest will begin accruing on those dates. The interest rate is lowered from 18% to 12%. See the Department of Revenue notice

State income tax relief. The filing and payment date for state income taxes is extended from April 15 to July 15, 2020. See the Wisconsin Department of Revenue March 21 news release.

Federal tax relief in the U.S.

On March 27, Congress enacted a historic stimulus package, the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act (H.R. 748). Relief includes direct payments to taxpayers and expanded unemployment benefits. For more details, see the text of the bill or the Tax Foundation's breakdown of the relief.

Even as Americans wait for stimulus checks to arrive, there's talk of a fourth relief package. Whether Congress can come together to make that happen remains to be seen.

On March 20, the Treasury Department moved Tax Day from April 15 to July 15. Treasury Secretary Steven Mnuchin tweeted, "All taxpayers and businesses will have this additional time to file and make payments without interest or penalties." Originally, the payment deadline was extended but the filing deadline remained April 15, 2020. Now the filing deadline has been extended, too.

Mnuchin is encouraging businesses and individuals to file and pay on time if they can. "We encourage those Americans who can file their taxes to continue to file their taxes on April 15, because for many Americans, you will get tax refunds."

Individuals can defer up to $1 million of the tax due for 2019. This applies to all individual returns, including self-employed individuals and all entities other than C-corporations. For C-corporations, the extension applies to up to $10 million of the tax due. The relief applies also to the estimated tax payments for tax year 2020 that are due April 15, 2020.

Additional relief is on the way due to the enactment of the Families First Coronavirus Response Act (H.R. 6201), which President Trump signed into law on March 18. It includes:

  • Emergency food and nutrition assistance 
  • Emergency paid sick days and leave days
  • Emergency paid leave benefits
  • Emergency unemployment insurance stabilization and access
  • Full federal funding of extended unemployment compensation for a limited period
  • Interest-free loans for states with advances
  • Coverage of testing for COVID-19

In other news, the Federal Reserve cut its benchmark interest rate to "close to zero" during a March 15, 2020, press conference call. It expects to maintain the rate at this level until confident the economy "has weathered recent events and is on track to achieve our maximum employment and price stability goals." It's also establishing a Commercial Paper Funding Facility (CPFF) to support the flow of credit to households and businesses, and encouraging banks to "use their resources to support households and businesses."

Additional resources:

Tax relief in Canada

Our neighbors to the north are also beginning to announce tax changes in response to the COVID-19 pandemic. Canada's working hard to slow the spread of the virus, with a mandatory self-isolation requirement now in effect for people arriving in Canada from anywhere in the world.

Federal changes include:

  • The deadline to file the individual income tax and benefit return is deferred to June 1, 2020
  • The deadline to pay any balance due for the individual income tax and benefit return for 2019 is extended from April 30 to September 1, 2020
  • The deadline to pay business income tax amounts due after March 18 and before September 1 is extended to September 1, 2020; no penalties or interest will be assessed if your balance due is paid by September 1, 2020

Additional details are available at the Canada Revenue Agency. Information about the newly adopted Canada Emergency Response Benefit (CERB) is available here.

Province Tax Relief  

British Columbia

Updated 4.2

Provincial sales tax (PST) relief. The filing and payment deadlines for PST, including municipal and regional district tax on accommodation, are automatically extended to September 30, 2020, for taxes due between March 23 and before September 30.

Taxpayers may make a lump-sum payment in September but must submit separate returns for each reporting periods. If you prefer, you may continue to file your returns according to your usual reporting periods and defer  payments until September 30, 2020. After September 30, returns for all sales taxes will be due on their usual due dates. See What's New in B.C. Sales Taxes.

There are also extended due dates for carbon tax, motor fuel tax, and tobacco tax. Additional details.

B.C. is also delaying some of the PST tax changes announced in the 2020 Budget.

COVID-19 Action Plan - Provincial Tax Changes

 
Manitoba The April and May filing deadlines are extended for two months for small and mid-sized businesses with monthly remittances of no more than $10,000. The Taxation Department will work with businesses regarding flexible repayment options above the $10,000 cap. Additional details will be available starting March 30 here.  
Ontario Interest and fines on a variety of provincial taxes are waived until Auguest 31, 2020. Harmonized Sales Tax was not mentioned.  
Quebec The March, April and May deadlines for Quebec Sales Tax (QST) filings and payments are extended to June 30, 2020. There will be no penalties or late interest charged.  
Saskatchewan Businesses may apply for a three-month extension to file and pay Provincial Sales Tax (until June). There will be no penalties.   
     

Tax automation has you covered

Avalara is monitoring changes to filing and/or remittance deadlines and responding accordingly.

Take care of yourselves.


Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Gail Cole
Avalara Author Gail Cole
Gail Cole has been researching, writing, and reporting tax news for Avalara since 2012. She’s on a mission to uncover unusual tax facts and make complex laws and legislation more digestible for accounting and business professionals — or anyone interested in learning about tax compliance.