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Dear Neighbors,
In today’s update, I am pleased to announce that more financial assistance is being made available to support small businesses and their workers, and the state tax filing deadline is being postponed until July 15 to give you more flexibility. No penalties or interest will be applied for the duration of the extension.
Continue reading for more specifics from the Dept. of Employment and Economic Assistance and the Dept. of Revenue. My office is a resource to answer your questions, connect you to resources, and help you navigate public agencies that are providing financial assistance.
Email me at rep.paul.marquart@house.mn or call 1-800-551-5520 (please be prepared to leave a voicemail message -- staff are tele-commuting in order to comply with public health guidelines).
Thank you to everyone for doing your part in fighting the spread of COVID-19.
Sincerely,
Paul Marquart
State Representative
Announcement from the Department of Employment and Economic Development about new financial aid for small businesses and workers
The Minnesota Department of Employment and Economic Development (DEED) is creating an emergency loan program to help Minnesota small business owners who need immediate assistance to meet their families’ basic needs during COVID-19 closures. Loan applications will become available later this week through DEED’s lender network. Minnesota small businesses should send questions about this emergency loan program to ELP@state.mn.us
Executive Order 20-15 directs DEED to create a Small Business Emergency Loan Program by making available $30 million from special revenue funds. These dollars will be used by DEED’s lender network to make loans of between $2,500 and $35,000 for qualifying small businesses. The loans will be 50% forgivable, and offered at a 0% interest rate. If other financing becomes available to small businesses that received an emergency loan, such as federal funding, the emergency loan must be repaid. These emergency loans will be made by an existing network of lenders DEED works with across the state. Depending on the size of the loans offered to businesses, DEED estimates this emergency loan program will provide needed resources to between 1,200 and 5,000 businesses.
The executive order also allows local units of government or lending partners which have a revolving loan fund to use those funds to issue loans to retail and service providers for the next 90 days. DEED estimates that up to $28 million in capital could be accessible through local revolving loan funds and local governments through this action. Local partners will be looking at ways to deploy these resources to support their local businesses.
Announcement from the Department of Revenue about extension of state tax filing deadline
In line with the state’s continued peacetime emergency response to COVID-19, the Minnesota Department of Revenue has announced that taxpayers filing their annual Minnesota Individual Income Tax return for tax year 2019 now have until Wednesday, July 15, 2020, to file and make their payments without any penalties or interest.
When must I file and pay my 2019 individual income taxes?
Both the IRS and Revenue will accept individual income tax returns through July 15, 2020, without assessing penalties or interest.
Why is the department offering more time to make payment?
As Minnesota responds to the COVID-19 situation, the State of Minnesota is providing this filing and payment grace period for 2019 to those who need it. We encourage Minnesotans who expect refunds to file as soon as they are ready.
We also encourage Minnesotans who do not need extra time to pay, to file and pay as soon as possible to do your part in providing on-going support to COVID-19 response across the state.
Are 2020 estimated state income tax payments included in this grace period?
This grace period does not include state estimated tax payments for individual income taxes due April 15, 2020, for the 2020 tax year.
Are Minnesota’s corporate franchise tax payments included in this grace period?
While the Minnesota due date of April 15, 2020 has not changed, under current Minnesota law, corporations receive an automatic extension to file their state return to the later of November 15, 2020, or the date of any federal extension to file.
Have the Minnesota partnership, fiduciary, or S-corporation income tax payment deadlines changed?
While the Minnesota due date of April 15, 2020 has not changed, under current Minnesota law, partnerships, fiduciaries, and S-corporations receive an automatic extension to file their state return to the date of any federal extension to file.
What if I cannot file or pay by July 15, 2020?
You may request relief from other late-file or late-pay penalties, additional tax charges, or interests, for reasonable cause or the state of emergency declarations by the president and governor due to COVID-19. You may request relief after being notified of a penalty.
What if I have other questions?
If you have questions about this new income tax payment deadline, please contact us:
See Our Response to COVID-19 on our website. For general questions, call us at 651-556-3000 or 1-800-657-3666 (toll-free), or use our email form.
See the IRS Response to COVID-19 on the IRS website.
General resources
U.S. Centers for Disease Control and Prevention
www.cdc.gov
Minnesota Department of Health
651-201-3920 or 1-800-657-3903 (7am-7pm daily)
www.health.state.mn.us
School and child care questions:
651-297-1304 or 1-800-657-3504 (7am-7pm daily)
www.education.mn.gov
*Child care providers with questions should call 1-888-234-1268.
Information for workers and employers: www.mn.gov/deed/newscenter/covid
Minnesota Department of Health Spanish language website: https://www.health.state.mn.us/diseases/coronavirus/materials/spanish.html
American Sign Language PSA:
https://www.youtube.com/watch?v=Q8bUdMEsiPQ&feature=emb_title
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