Sales and Use Tax Relief Provided in Response to COVID-19
During this uncertain and difficult time, state and local jurisdictions are continuing to react to the COVID-19 pandemic, to offer relief to taxpayers as it relates to sales and use tax. Information about such relief is changing daily, and we are here to provide you the latest information on your state and local tax filing obligations.
Official guidance from the Missouri Department of Revenue regarding the due dates for filing and paying sales and use tax returns indicates that there are no extensions at this time. However, if a taxpayer feels that there are extenuating circumstances that would warrant an abatement of penalties, our firm can contact the Department of Revenue to try to negotiate a resolution on that taxpayer’s behalf.
The state of Illinois is offering a limited extension for the payment of sales tax returns for tax periods February, March and April 2020. The extension is only offered to “qualified retailers” that meet all of the following requirements:
- Retailer operates an eating or drinking establishment
- Retailer had less than $75,000 of sales tax liability for calendar year 2019
- Retailer must still timely file its sales tax return (Form ST-1) for each tax period
The qualified retailer may make payments in four equal installments; the payment due dates would be May 20, 2020; June 22, 2020; July 20, 2020; and August 20,2020. (Illinois Informational Bulletin – FY 2020-23)
There are some other states that have offered relief for taxpayers, but the requirements to meet the relief are varied (e.g., based on NAICS or the amount of annual sales). Please see the AICPA’s State Filing Guidance for Coronavirus Pandemic for other state guidance.
Quarter-Monthly Accelerated Sales Tax Payments
If a taxpayer is in a position where the state requires weekly estimated payments, the taxpayer may need to have these payments adjusted based on current economic conditions. Our firm can contact each state’s Department of Revenue to try to negotiate a waiver or reduced payment amounts on the taxpayer’s behalf.
Our State and Local Tax practice team can assist in the preparation of your sales and use tax returns or assist with state negotiations. We strongly encourage our clients to review their current situation and seek assistance if needed. Contact your Brown Smith Wallace tax advisor with any questions you have about filing your return.