COVID-19: State Tax Implications for Businesses

In an effort to assist businesses affected by the Coronavirus pandemic states around the country have begun to offer relief such as extended sales & use filing deadlines and relaxed collection enforcement. Below are some examples of states that have eased filing requirements for their businesses:

  • Florida:
    • The Florida Department of Revenue will offer flexibility on due dates for taxes, including sales taxes, for affected businesses
  • Maryland:
    • Certain tax filing deadlines have been 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 by June 1
    • Collection actions ceased as of March 12, 2020 until 30 days after the state of emergency is lifted
  • Washington, D.C.:
    • 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 their monthly and quarterly sales and use tax returns through OTR’s online portal, MyTax.DC.gov, to receive this benefit
    • Deadlines for corporate tax filings, professional licenses, etc. have been extended from April 15 to April 30
  • Virginia:
    • Businesses impacted by COVID-19 can request to defer their March 20 sales tax payments to April 20. The Department will waive penalties for businesses whose requests are granted

Follow this link to view the tracker at the Tax Foundation’s website to see how your state is responding to the outbreak.

If you are having a serious business tax issue, contact the tax controversy professionals at Daniel Rosefelt & Associates, Attorney & CPA, to review your case.