A Reminder For Our Clients Regarding State Tax Filing

MARCH 25, 2020

As many are aware by now, the IRS has issued new guidance regarding the extension of the deadline to file and pay taxes to July 15, 2020 in an effort to provide relief during the current pandemic. Individual states, however, are still making determinations and the news continues to evolve.

As of Tuesday, March 25, we have received the following guidance from the states in which our clients reside and do business:

Virginia: Tax returns are due May 1. Payment may be made by June 1; however, interest will be charged. Please note that this does not provide a filing extension. To avoid any late filing penalties that may apply, taxpayers that utilize the aforementioned payment extension are still required to file income tax returns by the relevant due dates. However, if you are unable to file by such dues dates, Virginia offers automatic filing extensions to all taxpayers for up to six months (or seven months in the case of certain corporations). No application is required to file on extension.

West Virginia: The tax filing and payment deadline has been extended to July 15, 2020, to align with the Federal tax filing deadline.

Tennessee: Extended filing and payment of franchise and excise tax from April 15 to July 15. Interest and penalties waived if file and pay by July 15. Taxpayers will have until July 15, 2020, to file returns and make any payments (including quarterly estimated payments) originally due on April 15, 2020. Interest and late filing penalties will not be applied to returns filed and payments made on or before this extended due date. The October 15, 2020, six-month extension date for the calendar year 2019 return remains unchanged.

North Carolina: Extended income tax filing and payment deadlines from April 15 to July 15. HOWEVER they are still charging interest if payment is not made by April 15. Currently, State law prevents the Department from waiving accrued interest, including interest assessed for the underpayment of estimated tax, except in limited cases.

Please be aware of these deadlines and send Brown Edwards your materials accordingly to make sure you are compliant. We understand the current situation is fluid and changes have been frequent. If you have questions, please reach out to us and we will be glad to help.

Additionally, please feel free to consult the State Tax Filing Guidance for Coronavirus Pandemic chart from the AICPA link below. The information is updated daily and provides in depth information for each state.

https://www.aicpa.org/content/dam/aicpa/advocacy/tax/downloadabledocuments/coronavir us-state-filing-relief.pdf