Newsletter:

Due Date Guidelines in Light of COVID-19

March 18 2020

We continue to update you in addressing the challenges of the Coronavirus (COVID-19) as we move forward during these unique circumstances. We have taken steps to make sure we continue to deliver the level of quality, timeliness and excellence in which you are accustomed and are eager to help you and your business to move forward.

The Federal and local taxing authorities issued several guidelines to extend due dates for filing tax returns and/or remitting certain tax payments, as follows:

Puerto Rico Treasury Department (PRTD)

TAX FORM

       ORIGINAL DUE DATE

         NEW DUE DATE

Informative Declarations

February 28, 2020

PRTD will not impose penalties if declarations are filed by April 15, 2020.

Pass-Through Entities (Partnerships, Corporation of Individuals, Employees-owned Special Corporations, Revocable Trusts or Grantor Trusts). Including any payment due with said returns and the first installment of next tax years estimated taxes.

March 16, 2020

April 15, 2020

Tax returns and estimated tax payments for taxpayers with an economic year and an original due date of March 16, 2020.

March 16, 2020

April 15, 2020

Tax returns and any other Forms or Declarations with an extended due date fell on March 16, 2020.

March 16, 2020

April 15, 2020

Individual, Corporation and other Tax Returns with an original or extended due date of April 15, 2020. Including any payments due with said returns and the first installment of next year’s estimated tax.

April 15, 2020

May 15, 2020

Monthly Sales and Use Tax Return for February 2020, including any payment due with said returns.

March 20, 2020

April 20, 2020

Biweekly Sales and Use Tax Deposits

March 15, 2020 & March 31, 2020

PRTD will not impose penalties if tax is paid by April 20, 2020.

PRTD Bonds

Every bond with expiration date between March 15, 2020 and March 31, 2020

April 30, 2020

Internal Revenue License

Every license with expiration date between March 15, 2020 and March 31, 2020

April 30, 2020

Payment Plan Agreements with PRTD

Installment payments due between March 16, 2020 and April 30, 2020 (Moratorium Period).

Taxpayers are not required to remit payments during the Moratorium Period.

Notifications for Mathematical Error or Adjustment of Tax Return

Various

Extension of an additional 120 days is granted to the period established.

Term for filing administrative claims and every term required for the presentation of information or documents required by the Office of Administrative Appeals

Due dates falling after March 12, 2020

Extended for 90 days, commencing on the date of the due date.

Hearings before the Office of Administrative Appeals

Every hearing scheduled between March 116, 2020 and June 15, 2020

Automatically suspended until further notice.

 

Puerto Rico Department of State

The Puerto Rico Department of State announced an automatic extension for all 2019 Annual Reports and Limited Liability Companies annual fees. The new due date is May 15, 2020.  The 2019 Annual Report Extensions will postpone the latter due date until June 15, 2020 if filed before May 15, 2020. Further, the 2019 Additional Extension will be valid until July 15, 2020 if filed on or before June 15, 2020.

State Insurance Fund Corporation

The Administrator of the State Insurance Fund Corporation announced that all insurance policies with a March 2020 expiration date are automatically extended until April 30, 2020.

Office of the Commissioner of Financial Institutions (OCIF)

The Under Commissioner of Financial Institutions announced that all the terms granted for the filing of responses to complaints, information requests, financial reports of all kinds, including quarterly or monthly, renewal of licenses and any other term provided by the OCIF or the laws that OCIF administers, which expire during the dates from March 16, 2020 through April 14, 2020 are automatically extended to April 15, 2020.

Internal Revenue Service (IRS)

US Treasury Secretary announced three-month deferral period for payments of US federal income taxes owed for 2019. The IRS will not impose interest and penalties for 2019 taxes due up to $1,000,000 and $10,000,000 for individual and Corporate taxpayers respectively. Taxpayers are still encouraged to file their 2019 tax return with the IRS as soon as possible, especially if an income tax refund is expected.

State and Local Taxes (SALT)

Many States have announced guidance on relief provisions due to COVID-19. For instance, California is granting a 60-day deferral period for tax filing and payments. Likewise, Maryland also has delayed tax filing for certain businesses until June 1, 2020. We are keeping track of SALT’s development, contact us for further guidance.

About COVID-19

On March 11, 2020, the World Health Organization officially declared the outbreak of the COVID-19 as a pandemic. Considering this situation, the Governor of Puerto Rico issued Executive Order No. OE-2020-020 (Executive Order), in which she declared Puerto Rico in a state of emergency due to the imminent impact of the COVID-19 on our island. Likewise, last Friday March 13th, the President of the United States declared COVID-19 outbreak in the United States constituted a national emergency.