Sales and Use Tax Relief Due to COVID-19
Summary: Many states are issuing statements regarding sales tax filing and payment relief due to the emerging circumstances around COVID-19. Read on for state-by-state information.
How is COVID-19 Going to Impact Sales Tax Filings?
If you’re concerned about the impact of the COVID-19 emergency unfolding in the United States, you are not alone. In fact, businesses have been reaching out to us to better understand the impact of COVID-19 on their sales and use tax filings and payments.
Some states are already releasing guidance regarding relief in the form of waivers for late filings and payments. As expected, each state is a little bit different, though. In an effort to help taxpayers understand the implications of COVID-19 on their sales tax filings, we have compiled the following state-by-state summary.
We expect to update this list as more information becomes available. This post was last updated on 5/22/2020. For the most part, states have stopped issuing new guidance for sales tax relief in response to COVID-19. Because of this, this blog post will only be updated on occasion.
Free State Audit Risk Guide
See which states pose the greatest risk to your business.
State-by-State Audit Risk Percentages
State-by-State Sales and Use Tax Relief Due to COVID-19
|STATE||SUMMARY OF SALES TAX RELIEF OPTIONS|
|Alabama||Due to COVID-19, businesses who are unable to timely pay their February, March and April 2020 state sales tax liabilities AND who are currently registered as NAICS Sector 72 businesses (prepared meals, snacks, beverages for immediate consumption) will receive waivers through June 1, 2020 of late payment penalties. Other businesses may apply for relief on a case-by-case basis. Click here for more information.|
|California||Due to COVID-19, quarterly estimated sales tax payments due on April 15th now have a 60-day extension to pay by June 15th. Click here for more information. Additionally, effective April 2, 2020, small business taxpayers, those with less than $5 million in taxable annual sales, can take advantage of a 12-month, interest-free payment plan for up to $50,000 of sales and use tax liability. You can find more information about this here.|
|Colorado||Colorado retailers that are required to file and remit sales tax on April 20, 2020 may extend their deadline to May 20, 2020. This is a one-time extension and does not apply to home-rule taxing jurisdictions. The Department will waive penalties and interest that may accrue should the retailer file and remit on or before May 20, 2020. You can find more information about this here.|
|Connecticut||In response to the COVID-19 outbreak, taxpayers that have $150,000 or less in annual sales tax liability qualify for an automatic extension of time to file and pay. Monthly sales tax filers returns and payments due March 31, 2020 and April 30, 2020 are extended to May 31, 2020. Quarterly filers who have returns and payments due April 30, 2020 are also given the extension of May 31, 2020. You can read more information here.|
|District of Columbia||All vendors who are required to file sales and use tax returns on a monthly or quarterly basis are eligible for relief due to COVID-19. Interest and penalties assessed for failure to timely pay sales and use tax due for periods ending on February 29, 2020 and March 31, 2020 will be waived. All payments must be made in full on or before July 20, 2020. Please read here for more information.|
|Florida||Florida will waive penalties and interest for taxpayers who collected sales tax in February 2020 but were unable to meet the due date. For the March reporting period, taxpayers not adversely affected by the COVID-19 outbreak are required to continue to file and remit sales tax on or before April 20, 2020. Taxpayers that are adversely affected may benefit from an extended deadline of April 30, 2020. All penalties and interest will be waived for the February and March reporting periods. Please see this link for more information and a specific definition of “adversely affected.”|
|Hawaii||Hawaii issued a response to COVID-19 stating that filing and payment dates for all non-income taxes (Withholding, General Excise, etc.) remain unchanged. You can read more about that here.|
|Illinois||Due to COVID-19, Illinois is waiving any penalty and interest for late sales tax payments from qualified bars and restaurants. Qualified taxpayers must still file their sales tax returns, even if unable to make a payment. Any taxpayers taking advantage of this relief will be required to pay their sales tax liabilities due in March, April, and May in four installments starting on May 20 and extending through August 20. Click here for more information.|
|Iowa||Iowa is accepting applications for small businesses economically impacted by the COVID-19 pandemic. If approved, the business could take advantage of a deferral of sales tax as well as a waiver of penalty and interest. Returns and payments due on or after March 20, 2020 and on or before April 30, 2020 are eligible. Read here for more information and a link to the application.|
|Kentucky||All enforced collection action has been suspended due to the COVID-19 emergency. While the department is not actively enforcing debt collection, taxpayers are encouraged to call about their debt and the department will add a note to your case. If you are unable to make a payment, the department will make arrangements with you. You can find more information here.|
|Louisiana||The deadline for February 2020 sales tax returns and payments has been extended to May 20, 2020, in response to COVID-19. This is an automatic extension, no request is necessary. All penalties and interest will be waived. All businesses taking advantage of this filing an payment extension must submit payment via LaTAP or by paper (no Parish E-File or Sales Tax Online filing systems can be used). Click here for additional information.|
|Maryland||Due to COVID-19, businesses with sales tax returns due during the months of February, March, April, and May 2020 will have a filing deadline extension of July 15, 2020. Businesses who file and pay by the extended date will receive a waiver of penalties and interest. Click here for more information.|
|Massachusetts||In response to COVID-19, businesses with sales tax returns due during the months of March, April, and May 2020 will have a filing deadline extension of June 1, 2020. Businesses who file and pay by the extended date will receive a waiver of penalties and interest. This relief does NOT apply to businesses with a liability greater than $150,000 or marijuana retailers, marketplace facilitators, or vendors selling motor vehicles. Read here for more information.|
|Michigan||Due to COVID-19, all penalties and interest for late payment or filing of sales and use tax for the March, April, and May 2020 returns will be waived. Taxpayers have until June 20, 2020 to file and remit. Click here and here for more information.|
|Minnesota||Due to COVID-19, Minnesota enacted a 30-day grace period for sales and use tax for businesses identified in Executive Order 20-04. During this time, the department will not assess penalties and interest. Businesses with sales tax payments due 4/20/20 will have until 5/20/20 to make that payment (but they should still file the return by 4/20). The Minnesota Department of Revenue announced that it will not extend the grace period beyond May 20, 2020. Click here and here for more information.|
|Mississippi||The Commissioner of Revenue has the authority to extend all sales and use taxes by only one month without requiring the imposition of interest in response to the COVID-19 situation. At this point, no sales and use tax deadlines have been extended. However, the department will delay penalties and interest on any unpaid tax balance for the period covered by the declared national emergency. You can learn more about this here.|
|Nevada||Taxpayers are still required to report and pay their taxes on time. You may direct any additional questions to the call center at (866) 962-3707.|
|New York||Due to COVID-19, the New York Tax Commissioner has been given authority to abate late filing, payment, and interest penalties for quarterly sales and use tax filings that are due March 20, 2020. All returns must be filed and the amount due must be paid within 60 days of the due date for this relief to apply. Sales tax vendors who are required to file on a monthly basis are not eligible for this relief. Click here for more information.|
|North Carolina||North Carolina is offering a limited-time waiver of certain penalties for taxpayers affected by COVID-19. Penalty waivers include failure to obtain license, failure to file a return, failure to pay tax when due, and penalties regarding informational returns. The waiver applies to failures that fall within March 15 and July 15, 2020. To receive the waiver, the business must complete Form NC-5500, Request to Waive Penalties. This waiver will be considered a waiver for “special circumstances” and not the same as the waiver for good compliance that can only be granted every 3 years per tax type. Click here for more information.|
|Pennsylvania||The Pennsylvania Department of Revenue is waiving penalties for businesses that are required to make Accelerated Sales Tax (AST) prepayments by March 20 due to the COVID-19 outbreak. Additionally, the department is waiving the AST prepayment requirement for April and asking that businesses simply remit the sales tax that they collected in March. You can find more information here.|
|South Carolina||Due to COVID-19, sales tax returns and payments due April 1 – June 1 will now be due June 1, 2020. Penalties and interest will not be charged if payment is made by June 1. Click here for more information.|
|Tennessee||Tennessee is not offering any sales tax relief in response to COVID-19. Tennessee returns and payment remain due on time. You can read more information here.|
|Texas||As support for businesses struggling due to COVID-19, Texas is offering assistance in the form of short-term payment agreements and waivers of penalties and interest. You need to call their Enforcement Hotline at 800-252-8880 to learn about these options. Texas will also have a sales tax holiday of qualified emergency preparation supplies on April 25-April 27, 2020. More information can be found here.|
|Vermont||The Department of Taxes announced that until further notice, it will not assess penalties or interest for those businesses that have been affected by the COVID-19 pandemic and cannot meet the March or April sales and use tax deadlines. You can find more information here.|
|Virginia||In response to COVID-19, the Department will consider requests from sales tax dealers for an extension of the due date for filing and payment of sales tax returns due March 20, 2020. If the request is granted, the Department will extend the filing deadline to April 20, 2020 with a waiver of any penalties. Interest will continue to accrue even if the taxpayer is granted an exception. You can find more information by clicking here.|
|Washington||The following measures have been offered by the state of Washington to address the impact of the COVID-19 pandemic. Monthly filers may request an extension for paying tax returns by sending an email request to the Department of Revenue. Quarterly filers should note that the first quarter return is now due June 30, 2020. Annual filers should note that the 2019 annual return is now due June 15, 2020. Please note that the extensions only push out the due date, they don’t waive the tax owed. The Department only has the authority to waive interest through April 17, 2020. Interest will begin accruing after this date on outstanding balances. Please see here for more information.|
|Wisconsin||Returns and payments for sales and use taxes that are due March 12 – May 11 may be extended to May 11, 2020. All COVID-19 requests must be filed electronically here. https://TAP.revenue.wi.gov/COVID/ An extension will offer relief from late filing fees, penalties, and interest. Read this notice for more information.|
|Wyoming||Any COVID-19 related requests for delayed filing, payment or waivers for sales and use tax are handled on a case by case basis. You can see more information here.|