Oregon and Washington: Tax Relief Due to Covid-19

Historic steps have been taken at the federal, state and local levels to address the challenges the Covid-19 pandemic has presented to individuals and businesses of all sizes as well as state and local governments.

On Friday, March 27th, the House passed the largest stimulus package in history after an unanimous vote by the Senate to pass it on Wednesday, March 25th. For more information on the stimulus package, we welcome you to read the SVN Bluestone & Hockley blog.

Prior to passing the $2-trillion dollar stimulus package, the federal government had extended the tax filing requirements. The federal tax return filing deadline is now July 15, 2020. For tax payments of up to $10 million, the IRS has also extended the deadline for both individuals and businesses to July 15, 2020. Estimated tax payments for 2020 originally due on April 15 will now be due on July 15.

We’ve also been closely monitoring Oregon and Washington’s response to the crisis in relation to tax filing requirements. In this newsletter, we have outlined the changes each state has made to their tax filing requirements.

Oregon Tax Return and Filing Extended Deadlines

At the direction of Governor Kate Brown, the Oregon Department of Revenue has announced an extension for Oregon tax filing and payment deadlines for personal income taxes and some other taxes closely following the IRS extension de​claration​. This move is a result of the governor’s priority to keep Oregonians safe and healthy, while also providing relief and consistency for Oregon taxpayers affected by the federal and state COVID-19 emergency.

Under the authority of ORS 305.157, the director of the Department of Revenue has determined that the governor’s state-declared emergency due to the COVID-19 pandemic and the action of the IRS will impair the ability of Oregon taxpayers to take certain actions within the time prescribed by law. Therefore, the director has ordered an automatic extension of the 2019 tax year filing and payment due dates for certain affected taxpayers.

Personal Income Taxpayers:
  • The Oregon return filing due date for tax year 2019 is automatically extended from April 15, 2020 to July 15, 2020.
  • The Oregon tax payment deadline for payments due with the 2019 tax year return is automatically extended to July 15, 2020.
  • Estimated tax payments for tax year 2020 are not extended.
  • The tax year 2019 six-month extension to file, if requested, continues to extend only the filing deadline until October 15, 2020.
  • Taxpayers do not need to file any additional forms or call us to qualify for this automatic Oregon tax filing and payment extension.
  • If you have questions about your personal income tax, contact questions.dor@oregon.gov.
Corporate Income/Excise Taxpayers:
  • The Oregon return filing due date for tax year 2019 is automatically extended from May 15, 2020 until July 15, 2020. Returns due after May 15, 2020 are not extended at this time.
  • The Oregon tax payment deadline for payments due with the 2019 return by May 15, 2020 is automatically extended to July 15, 2020. Payments for returns due after May 15, 2020 are not extended at this time.
  • Estimated tax payments for tax year 2020 are not extended.
  • Taxpayers do not need to file any additional forms or call us to qualify for this automatic Oregon tax filing and payment extension.
Interest and Penalties:
  • Because of the extension of the due dates for filing returns and making payments, any interest and penalties with respect to Oregon tax filings and payments extended by this order begin accruing on July 16, 2020.
  • No automatic extension is provided in this order for the payment or deposit of any other type of Oregon tax or for the filing of Oregon information returns.
Washington Business Relief During Covid-19 Pandemic

Washington’s Department of Revenue is taking the following measures to provide relief of Covid-19 impacted businesses during the state of emergency. The actions address a broad range of taxes and programs such as business and occupation tax, real estate excise tax assessments, leasehold excise tax, forest tax and tax deferrals for biotechnology and medical device manufacturing.

Payment of monthly, quarterly or annual return

The Department requests that businesses still file returns even if they are unable to pay.

  • Monthly filers: Request an extension for paying tax returns (even if the request is after the due date) by sending an email in your My DOR account or by calling 360-705-6705.
  • Quarterly filers: The Quarter 1, 2020 return is now due June 30, 2020.
  • Annual filers: The Annual 2019 return is now due June 15, 2020.

Note: Extensions only push out the due date; they don’t waive the tax owed.

Collections

Revenue will delay issuing new compliance assessments until mid-April and reassess then. This delay includes tax warrants, notices of withhold and deliver, and revocations.

Late Renewals

For business licenses that are renewed late, the department will waive BLS delinquency fee for late renewals through April 17, 2020.

The Department will also waive penalties for late non-profit applications and renewals for exempt property through April 17, 2020.

Requesting Relief

Businesses can request the above relief by sending an email in their My DOR account or by calling customer service at 360-705-6705.

Sources:

Oregon: https://www.oregon.gov/dor/Pages/COVID19.aspx
Washington: https://dor.wa.gov/about/business-relief-during-covid-19-pandemic

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