The Minnesota Department of Revenue is continually updating policies to make it easier for taxpayers and businesses to comply with the law while adjusting to the financial realities of the COVID-19 pandemic. Last month, the Department used existing authority to extend February’s sales tax due date by one month for businesses affected by the Stay-at-Home order. This week, the Department provided another extension and will not assess penalties or interest on affected businesses that have monthly sales tax payments due March 20 or April 20 and pay by May 20. Businesses should still file sales and use tax returns by the due dates, but payments will be accepted until May 20.
This extension only applies to businesses identified in Executive order 20-04, but any business may request reduction or cancellation of penalties for late filing if reasonable cause exists, such as being negatively affected by the COVID-19 pandemic. Information is available on the website: www.revenue.state.mn.us/abatement-information-businesses.
The Department also granted a 60-day payment grace period for MinnesotaCare monthly and quarterly estimated tax payments due April 15, 2020. These payments are now due June 15, 2020.This grace period is automatic and applies to Provider Tax, Hospital Tax, Surgical Center Tax, Wholesale Drug Distributor Tax, and Legend Drug Use Tax.
More information is available at: www.revenue.state.mn.us/minnesotacare-taxes.