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Carolinas, Pennsylvania Among States in Lockstep with IRS Delay (2)

March 22, 2020, 4:26 PMUpdated: March 24, 2020, 10:10 PM

More states this weekend followed the IRS’s lead to push back income tax filing dates by three months. Here’s the latest on shifting state tax guidelines, deadlines, and policy to deal with the new coronavirus pandemic. For Friday’s coverage click here.

Both the Carolinas have followed the Internal Revenue Service in pushing back income tax deadlines amid the coronavirus pandemic. Treasury Secretary Steven Mnuchin said Friday that the federal filing date would now be July 15, to bring it into conformity with the previously extended payment deadline.

South Carolina Gov. Henry McMaster (R) directed the Department of Revenue on Saturday to extend the state’s income tax deadline to July 15, which is the new federal income tax deadline. Other state taxes will remain delayed until June 1st, as previously ordered.

Gov. Roy Cooper (D) of North Carolina announced late Friday that the DOR would extend the April 15 tax filing deadline to July 15 for individual, corporate, and franchise taxes to mirror the announced deadline change from the Internal Revenue Service.

Penalties for delayed filing will be waived, but North Carolina law currently requires interest to still be charged on tax payments that are made after April 15.

Count Pennsylvania In

The Pennsylvania Department of Revenue has extended the filing deadline for state taxpayers until July 15, giving filers an extra 90 days.

The department said Saturday that it would also waive penalties and interest on 2019 personal income tax payments through the new deadline, both for final 2019 tax returns and payments, and estimated payments for the first and second quarters of 2020.

The move was essentially “automatic” after the IRS action Friday, as Pennsylvania law ties the filing deadline for personal income tax returns the federal income tax due date.

Despite the extensions, the Department of Revenue is encouraging taxpayers to file their returns electronically if they are able to ensure they are processed smoothly and to expedite refunds.

Mississippi Seeks Financially Safe Delay

The Mississippi Department of Revenue is discussing extending the state’s April 15 tax deadline “to relieve pressure on our taxpayers,” Gov. Tate Reeves (R) said Saturday in a briefing streamed live from his self-isolation following a European trip with his family.

Details will be forthcoming. “We want to make sure we do it in such a way that doesn’t put our state’s finances at risk, but will at the same time provide real relief in these trying times for our taxpayers,” Reeves said. “That is something I’m committed to doing in the days ahead.”

Reeves said he would sign an executive order later Saturday offering help to “employees of small businesses who are having a difficult time keeping their doors opens in these challenging times.”

The order will waive the one-week waiting period for benefits for all claims between March 8 and June 27, Reeves said.

It also would suspend all work-search requirements and all collections activities such as liens and tax garnishments for the second quarter of the year, Reeves said.

-- with assistance from Jennifer Kay in Miami and John Herzfeld in New York City

(Revised to add details on charging interest in the 5th paragraph of March 22 story.)

To contact the reporters on this story: Andrew M. Ballard in Raleigh, N.C. at aballard@bloomberglaw.com; John Herzfeld in New York at jherzfeld@bloomberglaw.com

To contact the editor responsible for this story: Jeff Harrington at jharrington@bloombergtax.com

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