The Rhode Island Division of Taxation issued new Form PW, COVID 19 Coronavirus Hardship Penalty Waiver Request, for businesses affected by COVID-19 for use in requesting abatement of penalties for the late filing of tax returns, including withholding tax returns. (Rhode Island Division of Taxation Advisory 2020-23, May 27, 2020.)

Taxpayers have the right, under Rhode Island Regulation 280-RICR-20-00-4, to request that penalties be abated where there was no negligence or intentional disregard of the law, and the COVID-19 emergency meets this requirement. COVID-19 penalty-waiver requests should be for the periods beginning on or after January 1, 2020 and must include a reason for the waiver request.

Businesses that received an interest and penalty assessment as a result of a COVID-19 related hardship should complete Form PW and mail it, along with a copy of the assessment(s), to the Division at:

RI Division of Taxation

Attn: COVID-19 Hardship

One Capitol Hill

Providence, RI 02908

Option to set up a payment plan is available

• Existing monthly installment agreements. Businesses already under an existing monthly installment payment plan that are unable to make their monthly installment payment should contact the Division by email at Tax.Collections@tax.ri.gov or by phone at +1 401 574 8650. Options such as partial payments or payment extensions are available to taxpayers in need.
• New installment agreements. Businesses unable to fully pay their Rhode Island state taxes (including withholding), may apply for an installment agreement to pay what they owe in installments over time. The installment agreement form is available here. Instructions and other information are available here.

For more on the Division's response to COVID-19, go here.

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