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COVID-19: Tax Relief


Updated: March 27, 2020
Will be further updated if the CARES Act is passed

Federal and State Income Tax Relief In Response to COVID-19 Crisis

Federal, state, and local governments have extended income tax filing and payment deadlines in response to the COVID-19 crisis, which are summarized below.

Federal Guidance. The IRS has extended the due date for filing of federal income tax returns and payments of tax otherwise due on April 15, 2020, to July 15, 2020. This applies to all taxpayers that have a Federal income tax return or payment due on April 15, 2020, including individuals, trusts, estates, and C corporations. The extension does not apply to any taxpayers who have filing or payment due dates other than April 15, 2020, including calendar year partnerships and S corporations (which were due on March 16, 2020). The extension also does not apply to payroll, excise, estate and gift taxes, and information returns.

The extension also applies to 2020 1st quarter estimated tax payments which are due on April 15, 2020. However, 2020 2nd quarter estimated tax payments have not been extended and are due on June 15, 2020.

With respect to IRAs, HSAs, MSAs, and workplace-based plans, the following guidance was issued:

  • IRA contributions for 2019 can be made through July 15, 2020;
  • Payment of the 10% additional tax on a 2019 IRA distribution has been extended to July 15, 2020;
  • Elective excess deferrals to an employer-sponsored plan must still be removed by April 15, 2020;
  • If an employer has a federal income tax return due on April 15, 2002, the grace period for employer contributions to qualified plans for 2019 has been extended to July 15, 2020; and
  • Taxpayer contributions to a health savings account or medical savings account have been extended to July 15, 2020.

State and Local Guidance. Summarized below is guidance from states/localities that impose an income tax, and in which Spencer Fane has offices:

  • Arizona. Following the federal guidance, Arizona extended the filing and payment deadlines for individual, corporate, and fiduciary income taxes otherwise due on April 15, 2020, to July 15, 2020. The extension also applies to estimated tax payments due on April 15, 2020.
  • Colorado. Income tax returns required to be filed by April 15, 2020, for all Colorado taxpayers, are extended to October 15, 2020. Income tax payments otherwise due on April 15, 2020, for all individuals and businesses who pay income tax in Colorado, are extended to July 15, 2020. Estimated tax payments for the 2020 tax year which are due on and after April 15, 2020, but on or before June 15, 2020 can be paid any time on or before July 15, 2020 without penalty.
  • Kansas. Calendar year tax returns (2019) and payments thereon otherwise due on April 15, 2020, for individual income tax, corporate income tax, fiduciary income tax, and privilege tax, have been extended to July 15, 2020. Fiscal year tax returns and payments thereon due between April 15, 2020 and July 15, 2020, for fiduciary income tax, corporate income tax, and privilege tax are extended to July 15, 2020. The filing date for homestead and property tax relief refund claims is extended to October 15, 2020. However, estimated tax payments for 2020 which are due on April 15, 2020, are not extended at this time.
  • Minnesota. Individual income tax returns for 2019 and payments thereon are extended to July 15, 2020. The extension includes estimated tax payments for individual income taxes due for the 2019 tax year. Estimated tax payments for individual income tax for the 2020 tax year, due April 15, 2020, are not extended. Partnerships, fiduciaries, and S corporations receive an automatic extension of time to file in accordance with the federal extension, however, the due date for income tax payments for such entities has not changed.
  • Missouri. Income tax returns with a due date of April 15, 2020 are extended to July 15, 2020.  Income tax payments originally due on April 15, 2020, for individuals, C corporations, trusts and estates are extended to July 15, 2020. Individual and corporate estimated tax payments for tax year 2020 that are due on April 15, 2020, are also extended to July 15, 2020.
  • City of Kansas City. The City of Kansas City earnings and profits tax filing and payment deadline has been extended to July 15, 2020.
  • City of St. Louis. The City of St. Louis earnings tax filing and payment deadline has been extended to July 15, 2020.
  • Nebraska. State income tax returns (presumably includes not only individual returns but also corporation, trust and estate returns), payments thereon, and estimated payments, originally due on April 15, 2020, are extended to July 15, 2020.
  • Oklahoma. Income tax returns (presumably includes not only individual returns but also corporation, trust and estate returns) and payments thereon, and estimated payments, otherwise due on April 15, 2020, are extended to July 15, 2020.

Florida, South Dakota, Nevada, and Texas do not impose a state income tax.

For states or localities not listed above, please contact Dave Zimmerman or Kim Bushek for assistance.