Update Regarding State Tax Filing and Payment Deadlines
By John Kostenbauder, Harold Hecht, Seth Rabe and Julie Montrone
March 26, 2020
Consistent with the IRS postponing the April 15 deadline for tax filing and payment, more and more states are coming on board with a delay of their due dates as well, while others have still not officially announced conformity with the new July 15 deadline. Certain ancillary taxes, such as sales taxes, may also be impacted. The following is an update on certain states/cities:
The Department of Revenue has extended, without penalties or interest, the filing and payment deadline for 2019 state income taxes from April 15, 2020, to July 15, 2020, to mirror the IRS’s extension for filing federal returns in response to COVID-19; the extension also applies to estimated income tax payments for the 2020 tax year, but it is not applicable to other types of state tax such as employee withholding and sales tax or to state information returns.
The 2019 income tax filing and payment deadlines for all taxpayers who file and pay their Illinois income taxes on April 15, 2020, are automatically extended until July 15, 2020. This relief applies to all individual returns, trusts, and corporations. This relief is automatic, taxpayers do not need to file any additional forms or call IDOR to qualify.
This extension does NOT impact the first and second installments of estimated payments for 2020 taxes that are due April 15 and June 15. Taxpayers are required to estimate their tax liability for the year and make four equal installments.
July 15, 2020 has become the new due date for returns originally due April 15, 2020 as well first and second quarter 2020 estimated taxes. The Department of Revenue will waive penalties and interest on 2019 personal income tax payments through the new deadline of July 15, 2020.
The Philadelphia Business Income and Receipts Tax (BIRT) and Net Profits Tax filing dates have been changed to July 15, 2020. This also applies to estimated payments. The city has not made an announcement on the School Income Tax, which also has a due date of April 15.
New York State
Sales tax payments and returns were due March 20, 2020; however, penalties and interest may be waived for quarterly and annual filers who were unable to file or pay on time due to COVID-19. Returns must be filed and the amount due must be paid within 60 days of the due date for this relief to apply.
At this time, the Department of Taxation & Finance has not issued a formal announcement concerning personal income tax extensions, however certain officials have made statements suggesting that this will be the case.
New York City
The city has not made an announcement with respect to income taxes as of the writing of this Alert
Legislation has been proposed extending the filing and payment deadline for gross income tax and corporate business tax returns due April 15, 2020 to June 30, 2020. This has not been signed into law as of the writing of this Alert.