As businesses grapple with challenges related to COVID-19, certain states and localities have offered relief for late filing and payment of sales and use taxes. In some cases, the extended compliance deadlines are upcoming, including May 20 returns and payments.
Sales and use tax relief must be carefully examined prior to the applicable due dates. In many cases, relief is not an extension of the filing deadlines, and often not an extension of the payment deadlines (meaning that interest will apply for late payments). Further, taxpayers should consider their circumstances and the potential to receive relief from various filing and payment requirements (including accelerated and estimated payments), as relief specific to a taxpayer may not have been addressed in general state guidance.