Portland, Ore. – March 27, 2020
We have summarized below the most recent guidance from Oregon (issued March 25th) and Portland/Multnomah with respect to 2019/2020 filing and payment deadlines, which have been modified in response to the delays provided by the federal government. If you have not been following closely, final federal guidance delaying filing and payment deadlines was recently issued in Notice 2020-18.
Oregon Changes per Revenue Director Order 2020-01:
For 2019 personal income tax returns, transit self-employment tax, and fiduciary returns (trust or estate): any return due April 15, 2020 is automatically extended to July 15, 2020, for filing of the return and payment of any tax due with that return. There is no change to the due date for any 2020 estimated tax payment (this is confusing and different from federal, where the Q1 2020 estimated tax payment is deferred to July 15, 2020.) A 2019 “six-month extension” is still available and must be filed on or before July 15, 2020, but it will only extend the return to October 15, 2020.
For 2019 corporate income/excise taxpayers: the return due May 15, 2020 is automatically extended to July 15, 2020, for filing of the return and payment of any tax due with the return. Fiscal year returns due after May 15th do not receive any special relief for filing or payment due dates. There is no change to the due date for any 2020 estimated tax payment (again, inconsistent with federal, which allows deferral of Q1 2020).
There is no payment relief or automatic filing extension in Order 2020-01 for any other payment or deposit required by Oregon, or for the filing of any other return, including all information returns.
For any fact pattern where automatic filing and payment deferral are allowed through July 15, 2020, Oregon will not charge penalty or interest for the period April 15, 2020 to July 15, 2020.
The related ODOR Director Q&A makes it clear that:
- No taxpayer need be sick or otherwise directly affected by COVID-19 to be eligible for this relief.
- Forms covered by the relief include Forms OR-40, OR-40-N, and OR-40-P (personal income tax returns); Form OR-41 (fiduciary return); Form OR-OC (composite return); OR-STI (statewide individual transit tax); and OR-LTD and OR-TM (transit self-employment), all of which are extended from April 15, 2020 to July 15, 2020, AND Form OR-20 (corporate excise); OR-20-INC (corporate income); OR-20-INS (insurance excise); and OR-20-S (S corporation), all of which are extended from May 15, 2020 to July 15, 2020.
- Fiscal year filers with returns or payments due April 15, 2020 or May 15, 2020, receive filing and payment relief to July 15, 2020.
- Returns due June 15, 2020 (or any date other than April 15, 2020 or May 15, 2020) receive no relief.
- Payroll and noncorporate excise taxes (such as emergency communications, marijuana, lodging, and tobacco excise taxes) receive no relief under the order.
- Filing and payment of Form OR-706 estate tax receives no relief under the order.
- If a federal extension (Form 4868 or 7004) is filed on or before July 15, 2020, Oregon will honor the federal extension, and no Oregon extension is required to be filed as of July 15, 2020, unless Oregon tax is due with the extension.
- For post-July 15 filers with either a timely federal or Oregon extension filed by that date, the extended due dates will be October 15, 2020, for personal returns, or November 15, 2020, for corporate returns.
- If a 2019 return has already been filed, and tax due was not paid, if the return was due April 15, 2020 or May 15, 2020, you can defer payment until July 15, 2020.
- The Director Q&A reaffirms that the Corporate Activity Tax estimate due April 30, 2020 is still required to be paid by that date, but Oregon will not assess underpayment penalties if the taxpayer can show it made a “good-faith effort” in determining the amount paid as of April 30, 2020.
- Only 2019 returns noted above due April 15, 2020 or May 15, 2020 are covered by relief in the order (any other return or refund claim due by these dates receive no timing relief).
- If a 2019 Oregon return has already been filed, an amended return to revoke or make an election regarding the qualified business income reduced rate can be filed as late as July 15, 2020.
Portland/Multnomah County & Portland Arts Tax
The Portland Revenue Bureau website has not yet been updated in response to Oregon Order 2020-01, except for the Arts Tax, for which the filing and payment deadlines for 2019 are deferred until July 15, 2020 (previously due April 15, 2020).
The website makes this statement: “The City and County generally follow the guidelines of the Oregon Department of Revenue. We will make a formal announcement after Oregon publishes their decision.” Informally, we have been told the city and county intend to delay the 2019 filing deadline to July 15, 2020 if Oregon did (which it now has), but we have no official confirmation yet.
Other significant federal clarifications that have been published since our last communication on the federal deadline changes:
While not in the form of official guidance, after federal Notice 2020-18 was issued, the IRS has published on their website the following clarifications among others:
- The IRS will grant an automatic extension to July 15, 2020, whether April 15, 2020, was the original due date or if it was the extended due date.
- The IRS website lists all IRS forms that are eligible for delayed filing or payment to July 15, 2020, and confirms that returns that were due March 16, 2020, (such as Forms 1065 and 1120S) are not granted any relief from the March 16, 2020 deadline.
- The IRS confirms there is no relief for any federal return due May 15, 2020, June 15, 2020 or any due date other than April 15, 2020.
- The IRS confirms there is no relief for payroll, excise taxes or information returns due on any date.
- The IRS states there is no relief for payment or filings relating to an estate (Form 706) or gift tax return.
- The IRS confirms an extension must be filed by July 15, 2020 if more time is needed, but normal extended due dates would then apply (e.g. to October 15, 2020 for individuals, NOT 6 months from July 15, 2020.)
- The IRS confirmed Q2 2020 estimated payments due June 15, 2020 are still due on that date.
- IRA contributions for 2019 can be made on or before July 15, 2020.
- Employer plan contributions under section 404(a)(6) are due July 15, 2020 if the employer tax return was previously due April 15, 2020.
- HSA and Archer MSA 2019 contributions can be made on or before July 15, 2020.
- Federal statute deadlines and refund claim periods expiring April 15, 2020 (or any other date) are not extended.
- Form 4466 quick refund claim deadlines are not extended.
Questions? For all other inquiries, call 503.221.0336 or contact your Perkins advisor.
Disclaimer: The information contained in this communication, including attachments and enclosures, is not intended to be a complete analysis of all related issues. Nor is it sufficient to avoid tax-related penalties. It has been prepared for informational purposes and general guidance only and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and Perkins & Company, its members, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.