States Start to Provide Guidance on Upcoming Tax Deadlines
By Sandy Weinberg, Principal, Steve Eller, Partner, and Jill Cantor, Senior Manager
COVID-19 may not be going away soon, but state income tax deadlines, including the upcoming April 15th deadline, need to be addressed. For now, taxpayers will still have to file their state tax returns and pay any balance due on time to avoid interest and penalties unless they live in a state — such as California, Maryland, and Connecticut — that has already extended its tax return filing deadlines. Other states, including New Jersey and New York, however, are expected to follow suit soon.
As reported in our recent Tax Notes, the IRS just provided its guidance regarding the April 15th deadline.
Connecticut, New Jersey and New York
In the metropolitan tristate area, the developments are as follows:
In Connecticut, the filing deadlines for certain annual tax returns due on or after March 15, 2020, and before June 1, 2020, are extended. Specifically, the impacted returns and the associated filing dates and payment deadlines are set forth below:
- 2019 Form CT-1065/CT-1120 SI Connecticut Pass-Though Entity Tax Return: The filing date is extended to April 15, 2020; the payment deadline is extended to June 15, 2020.
- 2019 Form CT-990T Connecticut Unrelated Business Income Tax Return: The filing date is extended to June 15, 2020; the payment deadline is extended to June 15, 2020.
- 2019 Form CT-1120 and CT-1120CU Connecticut Corporation Business Return: The filing date is extended to June 15, 2020; the payment deadline is extended to June 15, 2020.
Individuals filing Connecticut income tax (Form CT-1040) returns due April 15 should be advised that the Department of Revenue Services (DRS) will adjust due dates for filing and payment of state income taxes to align with any specific, actionable announcement from the Internal Revenue Service regarding due dates for the filing and payment of federal income taxes.
There is no definitive word yet on tax relief or extensions in New Jersey. Often, New Jersey follows federal guidelines. On March 16, the New Jersey Assembly passed a package of bills to address the fallout from the coronavirus outbreak, including a bill which would extend the time to file gross income tax or corporation business tax return by one month. The bills still have to be passed by the Senate and signed by Governor Murphy.
New York State and City
At this time, New York State has not extended the deadline to file personal income tax or other tax returns. The New York State Department of Taxation and Finance has stated it will update its web page as information becomes available.
New York City has also not yet extended the deadline to file the Unincorporated Business Tax. The filing and payment date remain April 15, 2020.
Sales and Use Taxes
Note that for sales and use tax, in general, states expect businesses to remit sales taxes on time. The reason states are not lenient, and do not easily grant extensions, is because retailers essentially act as agents of the state in which the tax is due. Retailers collect the money and hold it until it’s time to turn it over to the respective state departments of revenue. We are unaware of any sales tax extension guidance provided.
PKF O’Connor Davies is monitoring the situation with the states. If you have any questions regarding state tax deadlines, or state taxes generally, contact:
Sandy Weinberg, JD
firstname.lastname@example.org | 203.705.4170
Steven J. Eller, CPA, JD
email@example.com | 551.249.1836
Jill Cantor, JD, CPA
firstname.lastname@example.org | 203.705.4174