COVID-19: State Taxation Guidance

In addition to the changes occurring at the federal level for tax filing and payment extensions, states are issuing their own guidance on deadlines. The Council on State Taxation has created a State Tax Filing Guidance for Coronavirus Pandemic resource that they are updating regularly.

Below are the highlights for the states where BerganKDV offices are located:

Iowa Response

Extension for taxpayers through July 31, 2020 of individual, corporate, franchise, moneys and credits, estate and trust, partnership and S corporation returns, and through April 10, 2020 of certain withholding returns.

Extension of filing and payment deadlines for income, franchise, and moneys and credits taxes

For Iowa residents or other taxpayers doing business in Iowa and required to file Iowa returns, the deadline for filing the following Iowa tax forms and any associated tax payments (excluding estimated payments) with a due date on or after March 19, 2020, and before July 31, 2020 is hereby extended to July 31, 2020:

  • IA 1040 Individual Income Tax Return and all supporting forms and schedules
  • IA 1040C Composite Return and all supporting forms and schedules
  • IA 1041 Fiduciary Return and all supporting forms and schedules
  • IA 1120 Corporation Income Tax Return and all supporting forms and schedules
  • IA 1120F Franchise Tax Return for Financial Institutions and all supporting forms and schedules
  • IA 1065 Iowa Partnership Return and all supporting forms and schedules
  • IA 1120S S Corporation Return and all supporting forms and schedules
  • Credit Union Moneys and Credits Tax Confidential Report

Extension for semi-monthly income tax withholding filers

For taxpayers who remit income tax withholding on a semi-monthly basis, the deposit due date for the period ending March 15, 2020 shall be extended from March 25, 2020 to April 10, 2020.

Penalties and interest

No late-filing or underpayment penalties shall be due for qualifying taxpayers who comply with the extended filing and payment deadlines in this Order.  Interest on unpaid taxes covered by this Order shall be due beginning on August 1, 2020 for payments described in section A, or April 11, 2020 for semi-monthly withholding payments described in section B.

Kansas Response

The Department of Revenue shall extend the deadline for filing the 2019 calendar year tax returns for individual income tax, fiduciary income tax, corporate income tax, and privilege tax to July 15, 2020. The payment due date for such taxes shall also be extended to July 15, 2020, and no penalty or interest shall be imposed if paid on or before July 15, 2020.

The Department of Revenue shall extend to July 15, 2020, the deadline for filing the 2019 fiscal year tax returns for fiduciary income tax, corporate income tax, and privilege tax with due dates between April 15, 2020 and July 15, 2020. The payment due date for such taxes shall be extended to July 15, 2020, and no penalty or interest shall be imposed if paid on or before July 15, 2020.

The Department of Revenue shall extend the filing date for homestead and property tax relief refund claims to October 15, 2020.

This order does not change laws, regulations, or rules regarding estimated tax payments due April 15, 2020.

In the event the State of Disaster Emergency originally proclaimed on March 12, 2020, is lifted or expires prior to July 15, 2020, the Department of Revenue shall continue to exercise appropriate discretion to effectuate the waivers of penalties and interest for payments made up to July 15, 2020, as contemplated in this order.

All other laws, regulations, or rules relating to taxes remain in effect.

Minnesota Response

Sales Tax Payment Extension for Eligible Businesses

We are granting a 30-day Sales and Use Tax grace period for businesses required to suspend or reduce services under Executive Order 20-04. See Sales and Use Tax for details.

Gambling Tax Payment Extension

We are granting a 30-day grace period for Lawful Gambling Tax payments for organizations that request an extension for their March 20 payment. See Gambling Taxes for details.

MinnesotaCare Tax Filing Extension

We are granting a 60-day extension for MinnesotaCare tax returns for organizations that request an extension for their March 16 return. See MinnesotaCare Taxes for details.

The Minnesota Department of Revenue has announced that taxpayers filing their annual Minnesota Individual Income Tax return for tax year 2019 now have until Wednesday, July 15, 2020, to file and make their payments without any penalties or interest.

When must I file and pay my 2019 individual income taxes?
Both the IRS and Revenue will accept individual income tax returns through July 15, 2020, without assessing penalties or interest.

Why is the department offering more time to make payment?
As Minnesota responds to the COVID-19 situation, the State of Minnesota is providing this filing and payment grace period for 2019 to those who need it. We encourage Minnesotans who expect refunds to file as soon as they are ready.

We also encourage Minnesotans who do not need extra time to pay, to file and pay as soon as possible to do your part in providing on-going support to COVID-19 response across the state.

Are 2020 estimated state income tax payments included in this grace period?
This grace period does not include state estimated tax payments for individual income taxes due April 15, 2020, for the 2020 tax year.

Are Minnesota’s corporate franchise tax payments included in this grace period?
While the Minnesota due date of April 15, 2020 has not changed, under current Minnesota law, corporations receive an automatic extension to file their state return to the later of November 15, 2020, or the date of any federal extension to file.

Have the Minnesota partnership, fiduciary, or S-corporation income tax payment deadlines changed?
While the Minnesota due date of April 15, 2020 has not changed, under current Minnesota law, partnerships, fiduciaries, and S-corporations receive an automatic extension to file their state return to the date of any federal extension to file.

What if I cannot file or pay by July 15, 2020?
You may request relief from other late-file or late-pay penalties, additional tax charges, or interests, for reasonable cause or the state of emergency declarations by the president and governor due to COVID-19. You may request relief after being notified of a penalty.

What if I have other questions?
If you have questions about this new income tax payment deadline, please contact us:

See Our Response to COVID-19 on our website. For general questions, call us at 651-556-3000 or 1-800-657-3666 (toll-free), or use our email form.

Missouri Response

Mirroring the federal guidance issued by the Internal Revenue Service (IRS), the Missouri Department of Revenue (DOR) will provide special filing and payment relief to individuals and corporations:

  • Filing deadline extended: The deadline to file income tax returns has been extended from April 15, 2020, to July 15, 2020.
  • Payment relief for individuals and corporations: Income tax payment deadlines for individual and corporate income returns with a due date of April 15, 2020, are extended until July 15, 2020. This payment relief applies to all individual income tax returns, income tax returns filed by C Corporations, and income tax returns filed by trusts or estates. The Department of Revenue will automatically provide this relief, so filers do not need to take any additional steps to qualify.
  • This relief for individuals and corporations will also include estimated tax payments for tax year 2020 that are due on April 15, 2020.
  • Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020. Individuals and corporations that file their return or request an extension of time to file by July 15, 2020, will automatically avoid interest and penalties on the tax paid by July 15.

Nebraska Response

As a result of the COVID-19 pandemic and actions taken by national health authorities to limit the spread of the disease, the Internal Revenue Service (IRS) recently granted federal income tax relief to taxpayers.  The IRS has automatically extended the tax filing and payment deadlines for federal income taxes from April 15, 2020 to July 15, 2020.

The State of Nebraska is providing this same income tax relief to state income taxpayers.  The tax filing deadline will automatically be extended to July 15, 2020 for state income tax payments and estimated payments that were originally due on April 15, 2020.   Nebraskans who are able to pay earlier are encouraged to do so to help the State manage its cash flow.

For Nebraskans affected by the COVID-19 pandemic in ways that impair their ability to comply with their state tax obligations for taxes administered by the Nebraska Department of Revenue, the Tax Commissioner may grant penalty or interest relief depending on individual circumstances.  To request relief, please 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.

Our teams at BerganKDV are rallying together and working around the clock to ensure we’re up and running so you can be up and running. Whatever situation you’re faced with, at any time – you can call our task force and we’ll get you the answers, the listening ear and/or the quick support you need: 888-356-2295 or info@bergankdv.com.

CATEGORIES: COVID-19 | Tax, Audit & Accounting

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