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The Oklahoma Tax Commission has followed the guidance issued by the Internal Revenue Service to allow individual taxpayers to defer up to $1 million of income tax payments due on April 15, 2020, until July 15, 2020, without penalties or interest. Corporate taxpayers will be granted a similar deferment of up to $10 million of income tax payments that would be due on April 15, 2020, until July 15, 2020, without penalties or interest.

In an emergency meeting on March 19, 2020, the Oklahoma Tax Commission issued Order 2020-03-19-04 providing relief to income tax payments due on April 15, 2020 for tax year 2019 and estimated income tax payments also due on April 15, 2020. The order does not extend payments deadlines for other tax types such as sales and use taxes, withholding income taxes, and gross production taxes.

Like the guidance from the Internal Revenue Service, the Order does not change the April 15 filing deadline for tax returns or informational returns. No automatic extension for filing is granted under the Order without the filing of an application for extension (Form 504-I for individuals and Form 504-C for corporations, partnerships and fiduciaries). The Oklahoma Tax Commission has an administrative policy of honoring the automatic federal extension, when no additional state tax is due, as an extension of time to file the Oklahoma return.

Any penalty and/or interest accruing for non-payment of income tax from April 15, 2020 through July 15, 2020 are waived pursuant to the Order upon filing of the required returns and paying all taxes due. Waivers of penalty and interest in excess of $25,000 will require approval of Oklahoma County District Court as currently provided by statute.