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COVID-19 State and Local Tax – Sales and Use Tax Guidance
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Robert Peters RobertPeters
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Keela Ross KeelaRoss
In response to the coronavirus (COVID-19) pandemic, U.S. state and local jurisdictions are responding with solutions to assist taxpayers during this time of uncertainty. Duff & Phelps’ Sales and Use Tax professionals provide a summary of measures adopted by the states, including filing and payment extensions.
Duff & Phelps will continue to monitor the sales and use tax landscape and provide frequent updates as they become available.
How we can help:
- Assist in securing deferrals of filings and tax payments
- Expedite pending refunds from prior period refund claims
- Identify potential opportunities to secure refunds of tax overpayments due to the company
- Expedite audit settlements on favorable terms
Sales and Use Tax
| States | New Filing Deadline | New Payment Deadline | Industry Specific | Comments | Source (Weblink) |
|---|---|---|---|---|---|
| Alabama | No Extension on report filing | 6/1/2020 - Small Businesses 7/15/2020 - FEIT |
Small Businesses and Banks | Small businesses whose monthly retail sales during the previous calendar year averaged $62,500 or less may file their monthly sales tax returns for the February, March, and April 2020 reporting periods without paying the state sales tax reported as due. Late payment penalties will be waived for these taxpayers through June 1, 2020. This does not apply to local sales tax liabilities. For an Affected Taxpayer, the due date for filing Financial Insitution Excise Tax (FEIT) returns and making FIET payments due April 15, 2020, is automatically postponed to July 15, 2020. There is no limitation on the amount of the payment that may be postponed. No extension is provided in this Order for the payment or deposit of any other type of state tax, or for the filing of any other state information return. |
Link 1 Link 2 |
| Alaska | 7/15/2020 | 7/15/2020 | Applies to all Taxpayers, except Oil and Gas Production taxes | Penalties and interest will not be assessed if returns and payments are received on or before July 15, 2020. | Link |
| California | 7/31/2020 for businesses filing less than $1 million in tax | 7/31/2020 for businesses filing less than $1 million in tax | Small Businesses | As of April 2, 2020, taxpayers with less than $5 million in annual taxable sales can take advantage of a 12-month, interest free payment plan up to $50,000 in sales & use tax liability. This would be paid back in 12 equal monthly installments. Providing a three-month extension for a tax return or payment to any businesses filing a return for less than $1 million in tax. For the approximate 99.5% of business taxpayers below the $1 million threshold for their current California sales and use tax obligation, returns for the 1st quarter 2020 will now be due on July 31, 2020. |
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