Small businesses to receive help from DOR
The Department of Revenue has announced immediate help for small businesses on sales taxes and other steps to help taxpayers in response to COVID-19 Last week, the Wisconsin Department of Revenue (DOR), like the IRS, automatically extended income tax payment and return due dates to July 15. The department has announced additional measures, including immediate steps to help small businesses with sales tax payments that were due March 31.
Small businesses can immediately request an extension to file sales and use tax returns due March 31, until April 30, and due April 30, until June 1.
Other elements related to important sales tax change are as follows:
• The DOR will not assess late filing fees or penalties, if sales/use tax returns are filed by April 30 or June 1.
• By law, payments are due March 31 and April 30; 12 percent interest will accrue, beginning on the due date, unless the legislature changes the law to allow the DOR to waive interest.
“We understand the anxiousness Wisconsinites have at this time,” said Gov. Tony Evers. “This event impacts not only our health and safety, but also our finances. Our state agencies are working to assist our citizens in any way that we can.”
Other significant changes by the DOR to assist individual and business taxpayers as they face challenges related to the COVID- 19 pandemic, are the following:
• Expediting claims for the Earned Income Tax credit and Homestead credit.
• Lowering the interest rate from 18 to 12 percent on unpaid balances on sales and use tax returns, due March 31 and April 30.
• Allowing installment payment plans for amounts reported on returns, but unpaid.
• Relaxing collection activities on delinquent amounts due between now and July 15, unless suspending the collection activity would compromise the state’s ability to collect the amount due.
• Delaying the start of most new audits of small businesses.
For more information, visit revenue.wi.gov.