MDOR EXTENDS TAX FILING AND PAYMENTS TO JULY 15
After continuing to advocate for an extension that coincides with the federal extension, MSCPA notified members via email on May 6 that the Mississippi Department of Revenue (MDOR) revised the filing deadline decision of May 15 and released the following notice extending the tax filing deadline to July 15. This includes payment of any balance due for 2019 and estimated payments.
MSCPA Taxation Committee, leadership and members are commended for their efforts to secure relief for our membership and taxpayers.
On May 1, MSCPA also notified members of tax filing guidance released by MDOR per our request and of other issues that were discussed. MDOR NOTICE 80-20-001 that was included in that email is now superseded. Other topics addressed included contributions and the State implications of the CARES Act. MDOR indicated that further information on the CARES ACT will be provided later. Highlights of our discussion are below.
IRA, HSA and MPACT contributions can be made up to the extended federal 7/15 deadline for the 2019 tax year for Mississippi purposes.
Taxation of PPP Loan Forgiveness
The CARES Act provides that the debt discharge of a PPP loan is excluded from the gross income of the business for federal income tax purposes. Forgiveness is limited, based upon the payment of qualifying expenses and the maintenance of employee count and compensation. Currently the Mississippi tax code does not exclude the forgiveness of debt from income. Legislative action will need to be taken to address this issue. MSCPA is following up through our advocacy program. If the Legislature does not address this issue currently, the issue will be readdressed next year.
The CARES Act temporarily suspends the existing taxable income limitations on NOLs, allowing NOLs to offset the business's full taxable income for taxable years beginning before January 1, 2021. Additionally, the CARES Act enables NOLs arising in 2018, 2019 or 2020 tax year to be carried back five years. Mississippi does not follow Federal law with regard to the NOL carryback and currently has a 2 year carryback period absent additional Legislative action.