NYS Covid-19 Tax Update March 30, 2020

In response to the Covid-19 pandemic, the NYS Department of Taxation and Finance has announced the following relief pursuant to Governor Cuomo’s Executive Order No. 202.12:

Individuals, Fiduciaries and Corporations (N-20-2 NYS Announcement)

• The filing deadline for personal income tax and corporation tax returns has been extended to July 15, 2020.
• Related tax payments due on April 15, 2020 may be deferred to July 15, 2020, without penalties and interest, regardless of the amount owed.
• The filing extension applies to all individuals, fiduciaries (estates and trusts) and corporations that are taxable.
• If a taxpayer has already filed the 2019 returns and has scheduled direct debit payments, it will not automatically be deferred; the taxpayer has to cancel and schedule a new direct debit plan if the taxpayer chooses to defer the payments until July 15, 2020.
• Installments for estimated 2020 taxes will not be subject to any failure to file, failure to pay, etc. if filed and paid by July 15, 2020.
• Taxpayers do not need to submit any extension forms, it will be automatically deferred.
• For taxpayers who are still unable to file by July 15, 2020, they may file an extension request by July 15, 2020 with the estimated payment due, for an extension to October 15, 2020; however, interest and penalties will begin to accrue on July 16, 2020.

Sales Tax Payments and Withholdings (N-20-1 New York State Announcement)

• Sales tax and withholding payments and returns must continue to be timely filed and timely paid.
• NYS may abate penalties and interest for the sales tax returns that were due on March 20, 2020 for taxpayers who were unable to timely file and pay for reasons such as:
  (a)  Key employees were treated or suspected to have COVID-19;
  (b)  The records necessary to meet tax filing, payment or other deadlines were not available due to the outbreak;
  (c)  The taxpayers had difficulty meeting the deadline because of closures orders or similar business disruptions directly resulting from the outbreak;
  (d)  For taxpayers whose tax practitioners were unable to complete work to meet tax filing, payment and other deadlines on behalf of clients due to the outbreak.
• The sales tax return that was due on March 20, 2020 must be filed and paid within 60 days of the due date to qualify for the abatement of penalties and interest.
• Exception: monthly filers and participants in the Promptax program for sales and use tax, or prepaid sales tax on fuel are not eligible for relief.
• All taxpayers may submit a reasonable cause explanation in an attempt to abate penalties at for any other period; however, interest is statutory.

Current Installment Agreements, Income Executions and Offers in Compromise

• Payments have not been deferred as of this date.
• NYS call centers remain open to discuss payment plans and collection alternatives.