COVID-19 Response to State Income Taxes

COVID-19 Response to State Income Taxes

This information was accurate as of 4/28/20.

The Association of International Certified Public Accountants has created a link, although lengthy, that gives state-by-state detail on what taxes are due, when they’re due, or if that state has done nothing to date to give small business owners assistance.

Maryland:

  • Maryland business and individual income taxpayers will be given a 90-day extension to file 2019 income tax returns and pay 2019 taxes and first quarter 2020 estimated taxes. No interest or penalty for late payments will be imposed if these payments are made by July 15, 2020. This extension for filing returns and payments of income tax does not affect the filing of estate tax returns or the payment of estate tax.
  • Comptroller Franchot also extended business-related tax filing deadlines to June 1. For more information, visit the Maryland Comptroller’s website.
  • Businesses who paid their Maryland Sales & Use Taxes for March early may request a refund of their payment by emailing taxpayerrelief@marylandtaxes.gov or by calling 410-260-4020.
    • Taxpayers who have set up a payment through their own online banking services will need to stop that transaction through their banks. Taxpayers who have scheduled a payment through the Comptroller’s iFIle or bFile can request to have a debit from their account stopped as long as it is at least 3 days prior to the scheduled payment date. If taxpayers have individual requests for assistance, they should contact Taxpayer Services at 410-260-7980or via email at taxhelp@marylandtaxes.gov.
  • The Maryland Department of Assessments and Taxation (SDAT) automatically extended the 2020 deadline to submit Annual Reports and Personal Property Tax Returns to July 15 as part of the Hogan administration’s response to COVID-19.
    • In accordance with Governor Hogan’s executive orders, expiration dates for trade names and name reservations, as well as entity forfeiture dates, will also be extended to 30 days after the state of emergency is rescinded.
    • The majority of Charter and Personal Property filings can be completed online through Maryland Business Express, and turnaround times for those filings remain unchanged.
    • All tax credit applications can also be submitted online; homeowners’ and renters’ tax credit applications can be submitted through Maryland One Stop, and homestead tax credit applications through SDAT’s website. Online applications will be immediately acknowledged as received, but all applications are taking longer to process at this time.
    • PDFs of all SDAT filings and applications may also be downloaded, printed, and mailed, although the Department strongly encourages customers to complete transactions online when possible as paper fillings will take significantly longer to process

District of Columbia:

    • DC has announced that the deadline for taxpayers to file and pay their 2019 DC individual and fiduciary tax returns, partnership returns and franchise returns is extended to July 15, 2020. This extension is automatic and does not require taxpayers to apply. Taxpayers may continue to request an extension to file their income, partnership and franchise tax returns to October 15, 2020. All such extension requests must be made by filing the applicable extension form with OTR by July 15, 2020 and making all required payments for tax year 2019 by July 15, 2020.
    • The Office of Tax and Revenue on March 26th announced that the deadlines for individual and business taxpayers to file their Tax Year 2020 estimated tax payments remain unchanged. The first quarter payments are due April 15, 2020, and the second quarter payments are due June 15, 2020.
    • The Office of Tax and Revenue has established a page to keep taxpayers, businesses and property owners updated on all available information/guidance as a result of the COVID-19 pandemic.  https://otr.cfo.dc.gov/page/coronavirus

Virginia:

  • Income Tax Payment Extension & Penalty Waiver
    • Any income tax payments due during the time period of April 1, 2020, to June 1, 2020, will now be due on June 1, 2020. This includes individual and corporate income taxes paid to Virginia Tax.
    • Late payment penalties will not be charged if payments are made by June 1, 2020.
    • Good news! During the Reconvene Session, the Virginia General Assembly overwhelmingly approved Gov. Northam’s amendments to the state budget to waive interest on income tax payments for which the payment deadline was extended to June 1, 2020, so long as the payment is made on or before June 1, 2020.  Additionally, the amendments waive interest on sales tax payments originally due March 20, 2020, so long as the payment was received by April 20, 2020.
    • All income tax filing deadlines remain the same, including the May 1, 2020 individual income tax filing due date. However, Virginia does already have an automatic, 6-month extension to file (7 months for certain corporations). If you file during the extension period, make sure you still pay any taxes owed by June 1, 2020 to avoid penalties.
    • For more information, see Virginia Tax Penalty and Interest Updates and Overview and Virginia Tax Bulletin 20-4: Income Tax Payment Extension and Penalty Waiver in Response to the COVID-19 Crisis and Interest Waiver For Certain Tax Payments In Response To The COVID-19 Crisis.
  • Interest Waiver of Certain Tax Payments
    • Certain income tax payments originally due during the period from April 1, 2020, to June 1, 2020, may now be submitted to the agency without the accrual of interest as would otherwise be required for late payments. This waiver of interest only applies if full payment is made on or before June 1, 2020. For a taxpayer filing on extension, at least 90% of the total tax liability must be paid by June 1, 2020, in order for the interest waiver to apply. If the interest waiver applies to such a taxpayer, no interest will accrue on the amount of tax paid by June 1, 2020, but interest will accrue from the original due date to the date of payment on any amount left unpaid
      after June 1, 2020.
    • This waiver of interest applies to any payment required to be made with a Taxable Year 2019 individual, corporate, or fiduciary income tax return, as well as any such payment required to be made with respect to an election to file on extension. In addition, this waiver of interest applies to any individual, corporate, or fiduciary estimated income tax payments that are required to be paid during the period from April 1, 2020, to June 1, 2020. The waiver also applies to payments associated with composite returns.
    • More information can be found in Tax Bulletin 20-5 and in the Laws, Rules, and Decisions section of the Virginia website.
  • Sales Tax Filing and Payment Extension & Penalty Waiver
    • Businesses impacted by Coronavirus can request an extension of the due date for filing and payment of their February 2020 sales tax return due March 20, 2020, for 30 days. When granted, businesses will be able to file and pay no later than April 20, 2020 with a waiver of any penalties. For more information, see Virginia Tax Bulletin 20-3: Option to Request Extension of Sales Tax Deadlines for those Affected by the COVID-19 Crisis
    • Dealers that were granted an extension of the due date for the February 2020 sales tax return and payment due in March pursuant to Tax Bulletin 20-3 will receive a waiver of the interest that would have otherwise accrued for such late payment. This waiver of interest only applies to such payments submitted to Virginia Tax no later than April 20, 2020.
    • Virginia Tax is committed to keeping you informed as the Coronavirus (COVID-19) crisis continues to evolve. Visit Virginia Coronavirus Updates for tax-related COVID-19 updates.
  • Cashier’s Office Closed
      • Due to guidance regarding social distancing our cashier’s office is now closed
      • At this time, we can’t accept cash payments
      • Based on the type of payment(s) you want to make, you can choose to pay by these options:
        • Directly from your bank account (direct debit)
        • ACH credit initiated from your bank account
        • Credit or debit card
        • Check or money order

For all of your payment options please visit https://www.tax.virginia.gov/payments