The Federal Government and State of Minnesota have taken several steps related to taxes to help mitigate the impact of COVID-19 on businesses. Below is a summary of these actions (current as of 2:15 pm March 20) and links to additional resources.
- On Tuesday, March 17, Treasury Secretary Mnuchin announced a 90-day extension for making income tax payments. The IRS followed up the announcement by releasing Notice 2020-17 on Wednesday, March 18, providing guidance on the 90-day extension. Our friends at CliftonLarsonAllen published a summary of the key provisions of this guidance for businesses. UPDATE: The Treasury Department has also announced that the deadline to file income tax was extended from April 15 to July 15.
- The U.S. Chamber of Commerce has called on Congress to cancel all payroll taxes paid by employers for the months of March, April and May – however Congress has not acted on this request.
- Congress passed the Families First Coronavirus Response Act which creates two new paid leave programs that all employers under 500 must implement for their employees. The Act provides a refundable tax credit on social security payroll taxes to pay for the new paid leave programs. You can get more info on these new programs هنا.
- Our friends at Eide Bailly will be holding a webinar on March 27 to provide an update on recent developments in tax legislation/regulations. Info and registration هنا.
- Minnesota Department of Revenue is granting a 30-day Sales and Use Tax grace period for businesses identified in Executive Order 20-04. During this time the department will not assess penalties or interest. Identified businesses with a monthly Sales and Use Tax payment due March 20, 2020, will have until April 20 to make that payment. These customers should still file their return by March 20. At this time, this grace period for penalty and interest is only for monthly filers and only for the March 20 payment. Identified businesses can request additional relief from penalty and interest for reasonable cause after April 20. Additional info.
- UPDATE: At his press conference on March 20, Gov. Walz announced that Minnesota will match the federal government and delay the tax filing deadline to July 15.
- Greater Mankato Growth along with the MN Chamber of Commerce have sent a letter additionally requesting that state income and state property tax payments also be deferred. The state has not yet acted on this request.