The Minnesota Department of Revenue followed the IRS in moving Minnesota’s 2019 income tax filing and payment deadline to July 15, 2020. Those who are able to file and pay by April 15 are encouraged to do so, but individual income taxpayers will not be assessed penalties or interest on taxes filed or payments received by July 15.
The extension does not include estimated tax payments for Minnesota income tax due April 15 for the 2020 tax year. It also does not include corporate franchise, S-Corporation, Partnership, or estate or trust taxes. This is different than the federal changes, which did extend the date for estimated 2020 payments as well.
It’s understandable that this creates some difficulties for some taxpayers that file estimated payments, including many businesses. The Department of Revenue has been working in earnest to balance the challenges faced by taxpayers with the challenges facing the state during this difficult time. Simply extending the individual income tax deadline alone had the potential to delay more than $1 billion of revenue otherwise due to the state’s coffers, which would create a serious cash-flow problem for the state. The situation is especially fragile since the state is also expending a great deal of money to address the COVID-19 crisis right now. The Revenue Department had to make the difficult, but responsible, decision to not delay all tax-filing deadlines in order to protect the state’s budget balance.
Taxpayers who cannot file or pay a specific tax by the stated due date have the ability under current law to request abatement of penalty and interest for reasonable cause, including emergency declarations by the president and governor due to COVID-19. Those with questions can keep tabs of current information at: www.revenue.state.mn.us/our-response-covid-19 . Updates on federal tax issues may be found at the IRS website: www.irs.gov.