Taxpayer State

The Taxpayer State is a means of triggering automatic extensions for payment granted by jurisdictions for particular years for particular reasons. It is only needed if the taxing jurisdiction restricts the extension to those companies who meet their particular criteria. For example, in 2021 the IRS, and the states of Louisiana, Oklahoma, and Texas granted extensions to companies whose financial operations were affected by the severe winter storms in those states. However, the definition of what constitutes a sufficient financial presence in the state varied. For the IRS, the Taxpayer State in these cases is the "IRS State of Record," that is, the registered home state or U. S. territory of the Taxpayer. Instant Interest customers will need to evaluate those criteria, and, if they apply, can select the appropriate state in the "Taxpayer State" pulldown.

For example, for taxes due in 2021, if the Jurisdiction is "FED - Federal" and the "LA  - Louisiana", "OK  - Oklahoma", or "TX  - Texas", and the original due date falls in the date range specified by the IRS, Instant Interest will automatically adjust the date on which interest begins to accrue to the date specified by the IRS.

Note: The field is not needed to trigger an extension in cases where the location of the business's financial operations is irrelevant, such as the the federal and state payment extensions granted in response to the hardships of the coronavirus (COVID-19) pandemic.for taxes due in certain date ranges in 2020.

Note: The Taxpayer State is only used to calculate interest schedules from the "Standard Input" panel. Though the IRS State of Record also appears on the "Easy Calculation" and "Custom Calculation" panels, it is not used there but is included there only to facilitate switching between panels. The assumption on these two panels is that the dates are as specified by the user.