taxes

State Offers Extra Time for Businesses Impacted by Restrictions to File Quarterly Taxes

taxes

Restaurants that typically depend on indoor dining, entertainment venues, recreational facilities and others that have been seriously curtailed by epidemic orders restricting their operations are at least getting a brief reprieve in filing monthly or quarterly tax payments for sales, use and withholding taxes according to the Michigan Department of Treasury.

Treasury officials say that businesses that require social gatherings for customers and have experienced disrupted operations due to Michigan’s COVID-19 epidemic orders now have more time to make monthly or quarterly tax payments, according to the Michigan Department of Treasury.

Restaurants that depend on indoor dining and most entertainment and recreational venues scheduled to make sales, use and withholding tax payments for December 2020 and January 2021 or for the last quarter of 2020 can postpone filing and payment requirements until February 20, 2021, and the state Treasury Department will also waive all penalties and interest for 33 days.

Gov. Whitmer says, “Businesses impacted by COVID-19 have made incredible sacrifices to protect their communities, their employees, and their customers,” and adds, “From the beginning, my administration has been working around the clock to provide our businesses with some crucial support as we work to end the pandemic, and I will continue to do so long after we beat this virus. Remember, Michiganders: mask up, practice safe social distancing, and avoid indoor gatherings where the virus can spread easily from person to person. We will get through this together.”

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Specific information about Treasury providing continued tax assistance to affected businesses can be found in “Notice: Penalty and Interest Waived for 33 Days for Certain Monthly and Quarterly Sales, Use and Withholding Returns due January 20, 2021.”  That notice can be viewed by clicking this link: https://www.michigan.gov/treasury/0,4679,7-121–549544–,00.html

State Treasurer Rachael Eubanks says, “We continue to use a variety of options to assist affected businesses,” and adds, “Moving the sales, use and withholding tax deadlines can provide these businesses critical time to figure out the next steps as we continue to move forward.”

This marks the second time that the state has taken action to extend payment deadlines. They did the same thing back on December 8, 2020, when the state Treasury Department first announced tax assistance for certain businesses affected by COVID-19 epidemic orders. Here is that link:

https://www.michigan.gov/treasury/0,4679,7-121-1755_1963-547529–,00.html    

The waiver is not available for accelerated sales, use or withholding tax filers. Businesses with questions about the tax assistance should call 517-636-6925.

The 2020 Sales, Use and Withholding Tax Annual Return (Form 5081) remains due on February 28, 2021.