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State and local taxing authority responses to COVID-19

 

State and local taxing authority responses to COVID-19

Mar 25, 2020

In response to the COVID-19 pandemic, on Friday, March 20, the IRS issued Notice 2020-18, which automatically extended the deadline to file 2019 federal income tax returns from April 15, 2020, to July 15, 2020. This July 15 deadline also applies to payments of 2019 taxes and 2020 quarterly estimates. 

This relief applies to any “individual, trust, estate, partnership, association, company or corporation” with a federal income tax return or payment otherwise due on April 15, 2020.

State and local extensions

State and local taxing authorities have been rapidly issuing their own guidance regarding extensions for businesses and individuals to file and pay taxes. 

Even though the majority of this guidance has focused on individual income taxes, some guidance has addressed corporate and pass-through taxes. 

Some states’ filing deadlines are linked to the federal deadline, causing it to automatically change as a result of Notice 2020-18. By contrast, other states’ filing deadlines are fixed by state law and cannot be changed without the enactment of state legislation, which may prove challenging for states whose 2020 legislative sessions have ended early due to COVID-19.

In addition, even though the March 20, 2020, sales tax filing deadline has now passed, some states have provided relief for that sales tax payment/filing deadline and/or future deadlines. Much of this sales tax relief has targeted small businesses or bars and restaurants who have been ordered to close as a result of COVID-19. 

Charting state and local taxing authority responses

Wipfli has created a chart to provide a summary, by tax type, of state and local taxing authorities’ published guidance regarding any extensions of time to file or pay state taxes as a result of the COVID-19 pandemic. 

Click here to view the chart.

This guidance is expected to continue to change frequently in the coming weeks, especially following the issuance of Notice 2020-18. As a result, Wipfli believes that the information contained in this chart is accurate, but we cannot guarantee either its completeness or accuracy. 

If you have questions about the application of this chart to your specific situation, please contact a Wipfli professional.

Author(s)

Dan Kidney
Daniel N. Kidney, CPA, JD
Director
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