COVID-19 Tax Update

On March 17, 2020 Treasury Secretary Steven Mnuchin announced that TAX RETURNS ARE STILL DUE APRIL 15th.  However, payments that are due on April 15th, or due with an extension on April 15th, may be delayed until July 15,2020 without penalty or interest.  If the return is not timely filed, or properly extended, the 90-day relief will not apply.

On March 18, 2020, in response to Treasury Secretary Steven Mnuchin’s announcement, Maryland Comptroller Peter Franchot announced that Maryland taxpayers would be afforded the same relief.  This announcement applies only to income taxes.  Taxpayers who file federal extensions will continue to be automatically granted an extension on their Maryland tax filings.

Based on current information, as of March 18, 2020, we are not aware of any relief provided for those taxpayers who will be making 2020 quarterly estimated payments, including first quarter 2020 estimates due April 15, 2020.  We recommend clients that pay quarterly estimates pay their first quarter 2020 tax estimates by April 15, 2020.

In a separate announcement on March 11, 2020, Maryland Comptroller Peter Franchot announced that certain business-related tax filings (not income tax filings) that are normally due in March, April, and May will be extended to June 1.  The business-tax filings related to the June 1 extension are sales and use tax, withholding tax and admissions and amusement tax, as well as alcohol, tobacco and motor fuel excise taxes, tire recycling fee and bay restoration fees.