UPDATE: On April 3, 2020, the Kentucky Department of Revenue clarified their position on the applicable filers eligible for the extended filing and payment due date of July 15, 2020. The following tax returns and payments currently due April 15, 2020, can be filed and paid by July 15, 2020, without incurring penalties and interest:
- Form 740 – Individual Income Tax
- Form 720 – Corporate Income Tax
- Form 725 – Limited Liability (LLET)
- Form 741 – Fiduciary Income Tax
- Form 765 & Form 720S – Pass-through Entities
Form 62A500, Tangible Personal Property Tax Return, was likewise extended from the current filing deadline of May 15, 2020 to July 15, 2020.
Please note that other returns and tax payments, such as sales and withholding taxes, continue to be due as regularly scheduled. However, the Department of Revenue is encouraging taxpayers to submit returns and payments electronically, instead of mailing paper returns and checks.
On March 22, at the direction of Governor Beshear, the Kentucky Department of Revenue announced they would adopt most of the Coronavirus Disease 2019 (COVID-19) income tax relief described in recent Internal Revenue Service Notice 2020-18.
- Extending the 2019 Kentucky income tax return filing due date from April 15, 2020 to July 15, 2020.
- Late filing penalties will be waived for 2019 Kentucky income returns that are filed by July 15, 2020.
- Kentucky income tax payments due on April 15, 2020, are deferred for 90 days to July 15, 2020.
- Late payment penalties will be waived for income tax payments deferred from April 15, 2020 to July 15, 2020. However, interest still applies to the deferred income tax payments because Kentucky law prohibits the waiver of interest.
Note, this only applies to income taxes. Other returns and payments, such as tangible property taxes and retirement contribution payments, should still be made by the original due date.
Louisville Metro Revenue Commission also announced last night that they are extending the occupational tax filing and payment deadline to July 15. However, the 1st quarter estimates for 2020 are due by May 15.
Additional guidance on COVID-19 Kentucky income tax relief will soon be available on DOR’s website. We are continuing to monitor the situation and will provide updates as soon as they become available.
You likely have also heard Governor Beshear announced all non-essential retail businesses are to close by 8 p.m. tonight. We understand this affects many of our clients and are here to answers questions or provide guidance in any way possible. You can view the entirety of the order here.