On April 13, 2020, New Jersey’s Senate (S.2338) and Assembly (A.3918) both voted to pass the COVID-19 Fiscal Mitigation Act, and Gov. Phil Murphy signed it into law April 14. 

According to releases from the Governor’s website and the New Jersey Division of Taxation:

• Following federal extensions, the Act automatically extends the deadline to file and pay annual or quarterly returns originally due April 15, 2020, for both Gross Income Tax and Corporation Business Tax filings. Those filings and payments are now due July 15, 2020.
  • This includes Q1 2020 estimated tax payments.
  • All other returns and payments, including Q2 2020 estimated payments, are still due on their original dates (i.e., Q2 payments are still due June 15, 2020).
• “Penalties and interest will not be imposed on the balance of 2019 income tax due between the original due date and July 15,” the Division of Taxation release notes.
• The Act also extends State Fiscal Year 2020 from June 30 to Sept. 30, 2020.

The legislation is effective immediately.

What does CohnReznick think?

As the situation resulting from the COVID-19 outbreak continues to evolve, we expect New Jersey and other states to issue additional guidance. Access the AICPA’s updated list of states that have provided relief, or visit our State and Local Tax Resources page for insights on select developments. We recommend checking back frequently for updates.

Contact

Corey Rosenthal, Principal, Practice Leader, State and Local Tax Services 

646.625.5729

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