The outbreak of the Coronavirus and its effect on the medical and financial well-being of individuals everywhere, has called for swift and fluid response by our executive and congressional leaders.
Here is a look at important developments resulting from recent executive and congressional actions that affect both individuals and business owners. The information provides you and your family with guidance as you navigate through these trying times.
Notice 2020-17 – Tax Payment Relief
The Treasury and the IRS have provided assistance for taxpayers affected by the ongoing Coronavirus Disease 2019 Pandemic in the form of tax payment relief for any person with a federal income tax payment due April 15, 2020.
Specifically, Treasury Secretary Mnuchin announced that any person with a federal income tax payment due April 15, 2020, could postpone certain tax payments without interest or penalty until July 15, 2020.
The due date is postponed only for federal income tax payments for 2019 normally due on April 15, 2020 and federal estimated income tax payments (including estimated payments on self-employment income) due on April 15, 2020 for the 2020 tax year. Interest, penalties, and additions to tax with respect to such postponed federal income tax payments will begin to accrue on July 16, 2020.
Note that the Notice does not provide any filing date extensions.
However, as of approximately 10 a.m. on March 20, Treasury Secretary Mnuchin said through Twitter the following:
"At @realDonaldTrump’s direction, we are moving Tax Day from April 15 to July 15. All taxpayers and businesses will have this additional time to file and make payments without interest or penalties."
Families First Coronavirus Response Act
President Trump signed into law on March 18, 2020 a multibillion-dollar tax and spending package that provides relief for the economic implications of the global coronavirus outbreak. This bill responds to the coronavirus outbreak by providing emergency paid sick leave, public health emergency leave, free coronavirus testing, expanding food assistance and unemployment benefits, and requiring employers to provide additional protections for health care workers. The passage of legislation allows Congress to devote its attention to passing the next coronavirus relief package.
Following are some of the important provisions of the Act:
Small Business Support
In addition to the response noted above, small business owners who are experiencing economic hardship can find guidance from the Small Business Administration and applicable state and local business organizations. The federal government site: www.sba.gov contains a wealth of information for small business owners, including direction regarding loan resources, and other funding programs, to material about how to obtain local assistance. Additionally, many states have made available special relief for business owners.
These are just some of the current measures taken in response to the fluid situation with the COVID-19 pandemic that may affect you, your family, and your business. We remain vigilant in our commitment to be here for you during this disruptive time.
Please contact us so we, in conjunction with your other advisers, can help address issues that are of concern to you.
Very truly yours,
Randy P. Siller and Jeffrey S. Cohen
Important Tax Developments
| March 25, 2020