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Florida Department of Revenue Emergency Order Providing Limited Relief to Corporate Income Taxpayers: April 27, 2020

Published: April 28th, 2020

By: H. French Brown, IV

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On March 26, 2020, the Florida Department of Revenue issued Emergency Orders delaying sales tax and property tax payments for some businesses. On April 6, 2020, Governor DeSantis directed the Department of Revenue to issue an Emergency Order suspending the state’s documentary stamp tax on notes and written obligations made pursuant to Title I of the CARES Act

Last night, the Florida Department of Revenue issued an Emergency Order delaying some Corporate Income Tax returns and payments.  This long-awaited guidance was initially expected to postpone all tax returns and payments until July 15, 2020, similar to IRS Notices 2020-18 & 2020-23; however, the Florida order provides more limited relief.

Corporate Taxpayers with a Fiscal Year Ending December 31, 2019:

  • Tax return filing deadline are extended from May 1 until August 3.
  • Tax payment deadline are extended from May 1 until June 1.
  • The deadline to submit a request for extension to time to file and make a tentative payment is extended from May 1 until June 1.

Corporate Taxpayers with a Fiscal Year Ending January 31, 2019:

  • Tax return filing deadline are extended from June 1 until August 3.
  • Tax payment deadline remains June 1.
  • The deadline to submit a request for extension in time to file and make a tentative payment remains June 1.

Corporate Taxpayers with a Fiscal Year Ending February 29, 2019:

  • Tax return filing deadline are extended from May 1 until August 3.
  • Tax payment deadline remains July 1.
  • The deadline to submit a request for extension to time to file and make a tentative payment remains July 1.

The Department’s order suggests that payments submitted should be based on a corporation’s “best estimate” of the amount of tax that would be due with the return. It is currently unclear how the Department will work with taxpayers regarding future underpayments.

Previous economic projections estimated that Florida’s Corporate Income Tax would bring in approximately $460 million, $215 million, and $501 million in general revenue in April, May, and June, respectively.  This projected $1.176 billion in corporate income tax revenue represents less than 3.5% of the general revenue budgeted in the current state fiscal year.