House Bill 1039: COVID-19 Respond Act – Economic Support
As a result of our constituents’ advocacy efforts, and that of your association, Representatives Howard (R – Davie), Saine (R – Lincoln) and Wray (D – Northampton) filed House Bill 1039: COVID-19 Response Act – Economic Support this morning, which included the following tax provisions noted below, as well as other changes to the State’s unemployment compensation laws and recommendations from the Division of Employment Security. These provisions were approved by the bipartisan House Select Committee on COVID-19 Economic Support Working Group, and are expected to be considered this week. Related information is summarized below. The complete bill draft is available here.
Waive the accrual of interest to the same extent as allowed under the federal announcement. It would waive the accrual of interest from April 15, 2020, through July 15, 2020, on an underpayment of tax imposed on a franchise, corporate income, or individual income tax return, including a partnership and estate and trust tax return, due from April 15, 2020, through July 15, 2020. The relief from accrual of interest would also include estimated tax payments due on April 15, 2020. The bill draft does not waive the accrual of interest on the tax payment extension of the other tax types.
Give taxpayers additional time to request an overpayment of individual income taxes and corporate income and franchise taxes for which the statute of limitations to seek a refund expires on or after April 15, 2020 and before July 15, 2020.
Extension for Reviews
Give taxpayers additional time to meet certain administrative and judicial action dates if those dates for action are due to be performed on or after April 1, 2020, and before July 15, 2020. Those actions include requests for a Departmental review of a proposed denial of a refund or a proposed assessment of tax, a petition for a contested case hearing at the Office of Administrative Hearings when a taxpayer disagrees with a notice of final determination issued by the Department, and a petition seeking judicial review of a party aggrieved by the final decision in a contested case.
Status: House Finance unanimously approved HB 1039 on Tuesday, April 28, 2020 on a roll call vote. The bill was referred to the House Rules Committee and is likely to be considered on Wednesday, April 29 at 3pm.