Businesses that require social gatherings for customers and have experienced disrupted operations due to COVID-19 epidemic orders now have additional time to make their December sales, use and withholding tax monthly payment, according to the Michigan Department of Treasury.
Effective immediately, most entertainment and recreational venues and restaurants that depend on indoor dining scheduled to make their monthly sales, use and withholding tax payments on Dec. 20, 2020, can postpone filing and payment requirements until Jan. 20, 2021. The state Treasury Department will waive all penalties and interest for 31 days.
“Allowing small businesses affected by COVID mitigation protocols more time to pay their taxes will provide some crucial support to business owners that are struggling right now,” Gov. Gretchen Whitmer said.“My administration will continue working around the clock to provide more support for our businesses as we head into the cold winter months and continue working to eradicate COVID-19 in Michigan.”
Ursula Scroggs, managing director at DKSS CPAs + Advisors with offices in Troy and St. Clair Shores, stressed the state’s decision does not exempt businesses from paying the taxes. It simply gives them more time to do so.
“This is the state giving these businesses some cash-flow assistance,” Scroggs said. “They still have to pay these things; the state is simply giving them more time.”
In announcing the move, Whitmer also renewed her call for a $100 million relief package she broached last month.
“I … urge the Michigan Legislature to work with me to pass a $100 million relief package for our small businesses and families that have been hit hard by this pandemic,” Whitmer said. “Remember, Michiganders: be smart, wear a mask, practice safe social distancing, and support your local small businesses this holiday season.”
Specific information about Treasury providing tax assistance to affected businesses due to COVID-19 epidemic orders can be found in SUW Penalty and Interest Waiver Notice.
“We understand the operational challenges being faced by restaurants and entertainment venues,” State Treasurer Rachael Eubanks said. “Changing some tax deadlines will provide some help to businesses as they navigate their way through the COVID-19 pandemic.”
The waiver is not available for accelerated sales, use or withholding tax filers. Businesses with questions should call the Treasury Business Tax Call Center at 517-636-6925 or through Michigan Treasury Online.