We are all familiar with various extensions of time that have been granted by the Federal Government to allow for filing of various reports, etc. For example, the normal filing time for filing the 1040 Income Tax Return in the US is generally on 4/15/ of the given year. Such filing of the return and paying of taxes is generally required to avoid penalties, interest and other late filing charges.
As most taxpayers know, the above deadline has been extended by the Federal Government to allow for a new date of 7/15/2020. This gratuitous extension of the Federal Government was encouraged in part by the inability in many cases for taxpayers to meet the 4/15 deadline because of the Coronavirus/ Covid 19 (C-19) pandemic.
As mentioned in numerous Tip notes, many deadlines have been extended by Congress, the Treasury, the President or others in the Federal Government. (For example, the time to complete tax deferred exchanges under Code Section 1031 and investments in Qualified Opportunity Zone Funds has been recently extended by the Treasury. (See this issue as discussed in a prior Tip note.)
What taxpayers should consider is the difference of the Federal laws and those from the states. That is, even though the Federal Government may have extended the time for a given filing, such as the 1040 tax return noted above, such extension is from the Federal Government. Taxpayers should confirm that such extension also applies at the state level in question. On all variances granted by the Federal Government, whether it is for a filing, charge, or other matter, the state in question might not follow the Federal rule. The prudent taxpayer will confirm that the special permission and extension that applies at the Federal level is also applicable at the state level. (Some local ordinances in states have also granted special dispensation to allow later filings, payments, etc.)
Colorado has allowed for extensions of the time for individuals to file income tax returns and for the payment of taxes. But, again, not all states have extended such time frames. Check ahead of the due dates!
By
Dr. Mark Lee Levine,
Professor, University of Denver