The IRS Has Offered Income Tax Relief for Filing and Payment Deadlines. Is Similar Relief Available for State and Local Taxes?

2 min

While much attention has been focused on the IRS extending deadlines for the filing of federal income tax returns and the payment of income tax with the issuance of Notice 2020-18, of equal or greater importance for many businesses will be the state and local tax filing deadlines. At the state and local levels, the coming days will bring compliance deadlines for many different taxes and fees in addition to income tax. Sales and use tax, real and personal property tax, franchise tax, payroll tax, and business occupation license taxes are examples of the vast array of taxes that may have due dates related to return filing, license renewal, and tax and fee payments.

While some states generally conform to the Internal Revenue Code changes and sometimes more generally to federal income tax in its various forms, in the absence of guidance from state taxing authorities, uncertainty is likely to arise regarding whether a particular state is following the relief offered by the IRS with respect to income tax filing and payment obligations.

For businesses that need to track whether relief is available at the state and local levels, the American Institute of Certified Public Accountants has posted a state-by-state chart on its website that has been providing timely updates on state responses to the pandemic.

As the AICPA chart indicates, relief guidance varies widely by state. Even when relief is available, taxpayers may need to determine whether the relief offered applies to the taxpayer’s particular situation. If you need any assistance with the availability of relief, members of the Venable Tax and Wealth Planning Group can assist. Don’t hesitate to contact us with any of your tax needs.