State Income and Sales Tax Extensions Due to the Pandemic Emergency
Most states are providing extensions. Here are recent developments in New York and our two contiguous states, Connecticut and New Jersey. Please contact your Gettry Marcus advisor for information on additional states.
Connecticut business tax returns are usually due one month after the federal return for the same entity. This applies to corporations and pass-through entities (e.g., partnerships and LLCs). The returns normally due between March 15, 2020, and May 31, 2020, are now due June 15th.
There is no extension for estimated tax payments that were due between March 15, 2020, and June 1, 2020, nor is there any extension for filing amended 2016 returns (i.e., the three-year statute of limitations has not been extended). There is also no extension for employers who withhold income tax from wages and salaries.
Qualified small businesses are also entitled to sales and use tax and room occupancy tax relief. A qualified small business is a taxpayer that reported no more than $150,000 in such taxes for the calendar year 2019. Monthly filers have their payments and returns due March 31, 2020, and April 30, 2020, extended to May 31, 2020. Quarterly filers have their payments and returns due April 30, 2020, extended to May 31, 2020.
Connecticut extended the due dates for personal returns, non-resident returns, and trust and estate income returns to July 15, 2020. Tax payments for 2019 due on April 15, 2020, and first and second quarter estimated tax payments for 2020 have all been extended to July 15, 2020.
New Jersey has announced that state income tax and corporation business tax filing deadline will be extended from April 15, 2020, to July 15, 2020. The Division of Taxation has not yet issued detailed guidance. We will monitor their announcements for future developments.
All income tax returns and payments due April 15, 2020, have been extended to July 15, 2020.
Employers must remit withholding tax on time; no extension applies.
There is no automatic extension for monthly filers of sales tax returns or for participants in the Promptax program or prepaid sales tax on fuel. Other taxpayers may apply for relief from penalties as long as their returns and payments are no more than 60 days late. Taxpayers who are unable to comply within 60 days may also apply for relief, and the Department of Taxation and Finance will consider those applications on a case-by-case basis.
New York City and City of Yonkers
New York State administers the New York City personal income tax (as well as the Yonkers personal income tax), so the filing date and payment dates have been extended to July 15, 2020.
New York State also administers sales tax for counties and cities within the state.
New York City has not announced an extended due date: New York City corporate tax returns for C corporations and unincorporated business tax (UBT) returns for sole proprietors and single-member limited liability companies are still due April 15th. New York City corporate tax returns for S corporations and UBT returns for partnerships, limited partnerships, limited liability partnerships and multi-member LLCs, which were due March 15th, are unaffected by this announcement. Instead, New York City has announced that it will allow a waiver of penalties for all business and excise taxes administered by the New York City Department of Finance that are due between March 16, 2020, and April 25, 2020. The announcement does not specify a particular extended due date. Taxpayers may request to have their penalties waived, but interest will still apply.
If you would like additional information please contact your Gettry Marcus Advisor or Alan Willinger, the author of this article.