TEI Requests Administrative and Payment Relief for State and Local Taxes in Response to COVID-19 Crisis

On March 25, 2020, TEI sent state and local tax organizations and state tax revenue agencies a letter seeking administrative, filing, and payment relief for state and local taxes in response to the COVID-19 crisis.

TEI’s letter noted that in-house tax practitioners responsible for preparing federal, state, and local tax returns of business taxpayers have been required to telework and, in many cases, shelter in place to prevent the spread of the COVID-19 virus. The unique and unprecedented nature of this crisis makes many deadlines and administrative practices traditionally required by state and local tax administrators unworkable. The letter outlined recommendations to assist state tax administrators and businesses during the next few months, as they adapt to the limitations this international disruption presents.

TEI’s recommendations included:

  • Delaying all state income and franchise filing and payment deadlines until at least 30 days after the federal income tax filing date;
  • Delaying all state and local sales/use taxes and property tax filing and payment deadlines for 60 days;
  • Allowing businesses the option to use employees’ temporary work locations for payroll withholding, nexus, and apportionment purposes while telework requirements are in place;
  • Allowing electronic funds transfers for state and local tax payments;
  • Permitting electronic signatures to execute waivers and other tax documents;
  • Stay the deadline for audit and protest deadlines for 60-90 days to provide taxpayers and tax administrators the opportunity to communicate regarding how and when taxpayers can address requests for documents and information while working remotely.

A copy of the letter sent the to Federation of Tax Administrators is attached.

TEI's letter was prepared under the aegis of TEI's State and Local Tax Committee, whose chair is Michell Rodriguez. TEI Tax Counsel Pilar Mata coordinated the preparation of the brief and was its principal author

Download the letter.