Request for Automatic One-Month Late Filing Penalty Waiver Due to Simultaneous State and Federal Return Deadlines

COST has urged over 25 states to provide an automatic one-month penalty waiver for filing extended corporate returns that are due on October 15, 2020. This automatic penalty relief, which would apply to late filing is warranted due to the change of the federal corporate tax return due date from September 15 to October 15. It will allow corporations a reasonable time to accurately file their state corporate income tax returns (and deal with the federal tax changes along with COVID-19 challenges). An explanation of this issue with draft penalty relief announcement is available here. COST is tracking and making available state responses to these requests in a tracking chart available below. For more information or questions, please contact Aziza Farooki or Fred Nicely.