Earlier this week, Gov. Gretchen Whitmer extended the current restrictions put in place by the Michigan Department of Health and Human Services through to Dec. 20.
The epidemic order enacted a “pause” on indoor social gatherings and other group activities in an effort to curb rising COVID-19 cases and infection rates. The pause also include closing certain entertainment, recreational, and indoor food service venues — which have struggled during the pandemic to stay in business.
To alleviate some of the present challenges faced by those businesses, the state’s Department of Treasury is automatically waiving penalty and interest for the late reporting or late payment of sales, use, and withholding tax for any non-accelerated return or payment due on Dec. 20.
The waiver will be effective for a period of 31 days; therefore, any non-accelerated sales, use, and withholding tax returns or payments currently due on Dec. 20 may be reported and submitted to the Department without penalty or interest through Jan. 20, 2021.
The waiver of penalty and interest only applies to non-accelerated sales, use, and withholding filers whose business is subject to the prohibition on gatherings under Section 3 of the MDHHS order. This includes, for example, businesses that are entertainment venues, recreational facilities and places of public amusement, and food service establishments with indoor dining.
Businesses not subject to a capacity prohibition, such as a business operating under the emergency rules issued by Michigan Occupational Safety and Health Administration (MIOSHA) on October 14, 2020, or businesses operating under general occupancy limitations, such as a retail store, are not eligible for the waiver of penalty and interest within this notice.
Taxpayers should consult with the MDHHS order to determine if the relief under the treasury’s announcement is applicable.
