Small businesses can request an extension to file sales and use tax returns due March 31 until April 30, the department announced Friday, citing the spread of the virus, which causes the respiratory disease COVID-19. The deadline for sales and use tax due on April 30 will be extended until June 1.
Under the guidance, the Revenue Department won't assess late filing fees or penalties if sales tax returns are filed by the extended deadlines. However, state law requires that 12% interest will begin accruing on payments due March 31 or April 30.
The Revenue Department will also expedite claims for the earned income and homestead tax credits, allow installment payment plans for unpaid amounts reported on returns and delay the start of most new audits on small businesses. In addition, the department will relax collection activities on delinquent amounts due before July 15 unless suspending those activities would compromise the department's ability to collect the tax owed.
--Editing by John Oudens.
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