Advisory 2020-16 issued by the Rhode Island Division of Taxation on April 15, 2020 confirms that not all deadlines are extended. The deadline to file March Sales and Use Tax returns and remit payments remains April 20, 2020. The Monday deadline is also not extended for Meals and Beverage Tax, Hotel Tax, Prepaid Wireless Tax, and Tax on Short Term Rentals.

The April 20 th deadline applies to “trust fund” taxes collected by businesses during March. Trust fund taxes are collected from customers at the time of sale and held in trust for the state until paid by the business. Failure to timely remit trust fund taxes or diverting trust funds for other uses is subject to penalty. The Advisory cautions that business owners may be held personally liable.

The State of Rhode Island is aware that many taxpayers are struggling. Governor Gina Raimondo previously issued an executive order extending numerous tax filing and payment deadlines until July 15, 2020. The extended filing and payment deadlines are detailed in Advisory 2020-11 and include, notably, Personal Income Tax, Corporate Income Tax, and Pass-Through Withholding Tax. The extended deadlines do not include trust fund taxes.

The continuing public health emergency makes it certain that not all businesses will be able to comply with the April 20, 2020 deadline. Businesses unable to pay taxes due by the April 20, 2020 deadline are reminded to timely file their tax returns even if they cannot pay the taxes due. Relief from late payment penalties may be available to qualifying taxpayers. Interest on late payments will accrue at 18% per annum.

Taxpayers unable to comply with the April 20, 2020 deadline or facing other tax and financial difficulties should contact McLaughlinQuinn LLC to discuss potential tax and financial workout options. For more information on this Client Alert, contact Thomas P. Quinn, Esq., Managing Partner, at (401) 421-5115 ext. 218, This email address is being protected from spambots. You need JavaScript enabled to view it. , or Kathryn S. Windsor, Esq., Senior Tax Counsel, at (401) 421-5115 ext. 226, This email address is being protected from spambots. You need JavaScript enabled to view it. .