On March 29, 2020, the New York State Department of Taxation and Finance issued Notice N-20-2, extending the April 15, 2020 due date for New York State personal income tax and corporation tax returns to July 15, 2020. The Notice was issued in response to Executive Order No. 202.12 which, among other things, authorized the Commissioner of Taxation and Finance to provide relief from certain tax filing and payment deadlines.
The Notice states that the extension applies to returns for individuals, fiduciaries (estates and trusts), and corporations taxable under Tax Law Articles 9, 9-A, and 33. In addition, the Notice states that taxpayers may defer all related tax payments originally due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed.
Taxpayers do not need to file any forms to request or apply for this relief.
The Notice further provides:
- Payments of tax or installments of tax, including installments of estimated taxes for the 2020 tax year, will not be subject to any failure to file, failure to pay, late payment, or underpayment penalties, or interest if filed and paid by July 15, 2020. Interest, penalties, and additions to tax with respect to such extended tax filings and payments will begin to accrue on July 16, 2020.
- Taxpayers who request an automatic extension to file a 2019 return by July 15, 2020 will have their due date extended to October 15, 2020 (or, in the case of fiduciary income tax returns, September 30, 2020).
- Any direct debit payments scheduled with a previously filed 2019 return will not be automatically rescheduled to July 15, 2020—instead, a taxpayer must cancel and schedule a new direct debit payment.
The Notice identifies the following exceptions to the relief provided:
- No extension is provided by the Notice for any other type of state tax, or the filing of any state information return.
- Remittance of income tax withheld by employers required to be made using Form NYS-1, Return of Tax Withheld, must be made on time.
While the New York City Department of Taxation and Finance has not yet issued guidance automatically extending deadlines to file corporate tax returns, it has issued Finance Memorandum 20-2, allowing for a waiver of penalties for NYC Department administered business and excise taxes due between March 16, 2020, and April 25, 2020. Taxpayers may request to have penalties waived on a late-filed extension or return, or in a separate request. However, interest would be due on all tax payments received after the original due date.
Stay tuned for updates on New York State and City tax-related deadlines and relief provisions related to COVID-19.