The Michigan Department of Treasury (“Department”) has announced that it will waive penalties and interest for 30 days for monthly sales, use and withholding tax returns due May 20, 2020, because of compliance difficulties related to the COVID‑19 outbreak, which is in essence a delay of the filing and payment date.
Any return or payment due on May 20, 2020, may be submitted to the Department without penalty or interest through June 20, 2020. The delay includes sales, use and withholding tax returns and payments due on May 20 as a result of the previous waiver of penalty and interest for payments and returns originally due on March 20 and April 20, 2020. Thus, the filing and payment obligations of March 20, April 20 and May 20 are delayed until June 20, 2020. This previous relief is outlined in our earlier eAlert available here. Relief for payments and returns due after May 20, 2020, are subject to further guidance. Also, the waiver is not available for accelerated sales, use or withholding tax filers. In general, accelerated filers are those that had $720,000 or more of sales or use tax liability, or $480,000 or more of withholding tax, in the preceding calendar year. Those taxpayers should continue to file returns and remit any tax due per the original due dates.
Click here to read the Department’s notice.
Please contact Jay Kennedy, William Lentine, Sean Cook, Jeffrey Segal or a member of Warner’s Tax Law Practice Group if you have any questions.
