March 21, 2020
State Tax COVID-19 Update
Posted by COVID-19 Rapid Response Team
State and local governments are rapidly following the lead of the federal government’s Emergency Declaration on Coronavirus Disease 2019 (COVID-19) by providing relief from tax deadlines to Americans who have been adversely affected by the COVID-19 emergency. Many states have “piggybacked” the federal government’s emergency measures, while other states have adopted their own relief measures. A few states have not changed the dues dates because their legislatures are not in session or able to convene, but they are expected to provide relief.
The various state tax administrators and officials are monitoring developments pertaining to the Coronavirus (COVID-19) and are issuing guidance. The states are responding in the following ways:
- States are following federal guidance on due dates for filing and payments;
- States are issuing their own guidance; or
- States have not yet adopted emergency relief because their legislatures are unable to convene.
Click here to access the AICPA’s State Tax Filing Guidance for the Coronavirus Pandemic. It provides the current filing guidance as well as links to the various states’ websites.SOURCE: AICPA Coronavirus Resource Center
State income taxes are not the only taxes being affected and/or addressed as a response to the COVID-19 emergency. Other taxes and fees including both filing deadlines and payment deadlines are impacted as well, including but not limited to:
- Payroll taxes
- Sales taxes
- Excise taxes
- Local taxes
- Property taxes
- Business licenses
Please consult with the taxing authority’s website to provide guidance as to when the filing and payment of your tax obligations are due and payable.
We have also encountered issues and questions regarding next steps in audits, protests, notices, etc. as it becomes increasingly difficult to access data or state and local tax departments. Some states have addressed this concern, and some have not. In addition, as states cash concerns grow, if state audits are open, it may be a good time to reach a favorable audit settlement.
These are unprecedented times. And we know you, your families and your organizations need support, now more than ever. Our top priority as your trusted advisor is to ensure we’re helping you through these tough times. Visit COVID-19 Rapid Response Resource Center for our crisis management resources and contact information for our COVID-19 Rapid Response Team Leaders.