Client Alert: ME and New Hampshire Tax Deadline Extensions

By: Andrew Wells

On March 13, 2020, the President issued an emergency declaration in response to the COVID-19 global pandemic. In response to the President’s emergency declaration, the IRS issued Notice 2020-18, which extended the federal tax filing deadline for income tax returns that would normally be April 15th, 2020 to July 15th, 2020.

In ME

On March 26, 2020, Governor Mills and the Commissioner of the Department of Administrative and Financial Services announced that the State of ME will follow the federal government’s lead and extend ME’s income tax filing and payment deadline from April 15, 2020 to July 15, 2020. The ME extension includes all ME income and franchise taxes that would have been due April 15th.

The tax filing deadline extension applies to:

• ME Individual Income Tax Returns
• ME Income Tax Returns for Estates and Trust
• ME Corporate Income Tax Returns
• ME Franchise Tax Returns.

The due date for first quarter estimated tax payments are also extended to July 15th, however 2nd quarter estimated tax payments are still due on June 15th as it currently stands. In addition, any failure to pay interest and penalty payments will be abated until July 15, 2020.

In New Hampshire

On March 31, 2020, the New Hampshire Department of Revenue Administration announced that the State of New Hampshire will grant relief to taxpayers who must file returns for and pay Business Tax (Business Profits Tax and Business Enterprise Tax) and Interest and Dividends Tax. Ordinarily, such taxpayers are granted an automatic 7-month extension to file a tax return if the tax owing is paid on or before April 15, 2020. Under the relief announced, taxpayers will be granted the automatic 7-month extension to file a return for 2019 if they pay an amount equal to their total tax year 2018 tax liability by April 15, 2020. For taxpayers that must make estimated tax payments on April 15, July 15, September 15, and January 15, the underpayment of tax penalty will not be applied if the taxpayer pays on these dates at least 25% of their tax year 2018 total tax liability.

If a taxpayer’s Business Tax total tax liability was less than $50,000 in 2018 or Interest and Dividends Tax total tax liability was less than $10,000 in 2018, the April 15, 2020 payment dates above are extended until June 15, 2020, provided the unpaid balance of any tax liability is paid on or before June 15, 2020.

To learn more visit our Tax Team webpage.