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COVID-19 Changes Some State and Local Tax Obligations

04.14.2020

Note: This article was originally published on 3.25.2020 and was revised on 4.14.2020 from its previous version to reflect updates from the Missouri Department of Revenue.

With the 2019 federal income tax filing deadline moving to July 15, 2020, due to the COVID-19 outbreak, there is confusion surrounding state and local tax obligations. Information is changing daily, and we are here to provide you the latest information on your state and local tax filing obligations.  

Missouri

Guidance from the Missouri Department of Revenue regarding 90-day extension to file and pay individual and corporate income tax:

  • Filing deadline extended: The deadline to file income tax returns has been extended from April 15, 2020, to July 15, 2020.
  • Payment relief for individuals and corporations: Income tax payment deadlines for individual and corporate income returns with a due date of April 15, 2020, are extended until July 15, 2020. This payment relief applies to all individual income tax returns, income tax returns filed by C Corporations, and income tax returns filed by trusts or estates. The Department of Revenue will automatically provide this relief, so filers do not need to take any additional steps to qualify.
  • This relief for individuals and corporations will also include estimated tax payments for tax year 2020 that are due on April 15, 2020.
  • The Department of Revenue announced on April 13, 2020 that it is extending the June 15, 2020, estimated tax payment deadline to July 15, 2020. This announcement provides additional relief to individuals and corporations by extending the due date for the 2nd quarterly payment.
  • Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020. Individuals and corporations that file their return or request an extension of time to file by July 15, 2020, will automatically avoid interest and penalties on the tax paid by July 15.

City of St. Louis

City of St. Louis Collector of Revenue Gregory F.X. Daly has extended the earnings tax filing deadline from April 15, 2020 to July 15, 2020, to mirror the federal and state deadlines. Taxpayers don't need to file any additional forms to qualify for this automatic extension.

City of Kansas City, MO

The City of Kansas City, Missouri, is extending the 2019 Earnings Tax filing and payment deadline to July 15, 2020, mirroring the guidance issued by the Internal Revenue Service and the State of Missouri Department of Revenue.

Illinois

The state of Illinois is following the lead of the federal government in providing special tax filing and payment relief to individuals and businesses.  The 2019 income tax filing and payment deadlines for all taxpayers who file and pay their Illinois income taxes on April 15, 2020, are automatically extended until July 15, 2020.

This relief applies to all individual returns, trusts and corporations. This relief is automatic, taxpayers do not need to file any additional forms to qualify. Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020. Taxpayers will automatically avoid interest and penalties on the taxes paid by July 15, 2020.

Note: This does NOT impact the first and second installments of estimated payments for 2020 taxes that are due April 15 and June 15. Taxpayers are required to estimate their tax liability for the year and make four equal installments. Taxpayers will not be assessed a late estimated payment penalty if the amount of the installments equals 90 percent or more of the current year’s liability or 100 percent of the previous year’s liability.

Other States

Please see the AICPA’s State Filing Guidance for Coronavirus Pandemic for other state guidance.

Our tax team has the capacity to prepare tax returns now. We strongly encourage our clients to gather their information now so that we can give proper advice on how all these rapidly changing rules apply to your situation. Contact your Brown Smith Wallace tax advisor with any questions you have about filing your return.

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