Corona Virus Economic Impact Payment: How Do You Get It, When Is it Coming, and Where Is It?
tax attorney orange county, tax attorney newport beach, estate planning attorney newport beach
What is CSED (IRS)?

What You Need to Know About IRS Corona Virus Relief (03-31-2020)

tax attorney newport beach
tax attorney newport beach

What You Need to Know About IRS Corona Virus Relief (03-31-2020)

The various news releases for IRS Corona Virus relief, as they are updated, from the IRS can be found at https://irs.gov/coronavirus. Among those are the tax return extension and tax payment extension deadlines to July 15, 2020, for 2019 returns. A list of the IRS corona virus releases to date can be briefly summaries as follows (in order of most generally applicable first):

IR-2020-58 – Tax Day is now July 15: Treasury and the IRS have extend filing deadline and federal tax payments for 2019 individual and corporate returns to July 15, 2020, as part of the corona virus relief, regardless of the amount due.

IR 2020-61 – This is the economic impact payments for eligible taxpayers of up to $1,200 for individuals or $2,400 for married couples. Parents also receive $500 for each qualifying child. The full release should be read because it details the income limits, what happens if you did or did not file a return for last year or this year, getting the payment by direct deposit or by mail.

IR-2020-59 – This release details the IRS’s temporary “People First Initiative” (were they not first before?). This is applicable to those who currently owe the IRS. The release is a long one and should be read by anyone in danger of liens, levies, garnishments, or other enforcement actions and by anyone who is in danger of defaulting on a current payment plan or offer in compromise.

IR-2020-57 – Treasury, IRS and Labor announced a plan to implement Coronavirus-related paid leave for workers and tax credits for small and midsize businesses to swiftly recover the cost of providing Coronavirus-related leave.

Payment Deadline Treasury News Release – Treasury and IRS issued guidance that Form 1040 filers owing under $1 million and corporate filers owing under $10 million for their 2019 returns could wait until July 15, 2020 to pay. The filing deadline was later extended to the same date by IR-2020-58.

IR-2020-54 – The IRS said that health plans that otherwise qualify as HDHPs will not lose that status merely because they cover the cost of testing for or treatment of COVID-19 before plan deductibles have been met. The IRS also noted that, as in the past, any vaccination costs continue to count as preventive care and can be paid for by an HDHP.

IR-2020-62 -IRS: Employee Retention Credit available for many businesses financially impacted by COVID-19

IR-2020-57 – Treasury, IRS and Labor plan to implement Coronavirus-related paid leave for workers and tax credits for small and midsize businesses. This is long one. The key takeaways are:

  • Paid Sick Leave for Workers – For COVID-19 related reasons, employees receive up to 80 hours of paid sick leave and expanded paid child care leave when employees’ children’s schools are closed or child care providers are unavailable.
  • Employers receive 100% reimbursement for paid leave pursuant to the Act.
    • Health insurance costs are also included in the credit.
    • Employers face no payroll tax liability.
    • Self-employed individuals receive an equivalent credit.
  • Fast Funds Reimbursement -An immediate dollar-for-dollar tax offset against payroll taxes will be provided and, where a refund is owed, the IRS says it will send the refund as quickly as possible.
  • Small Business Protection – Employers with fewer than 50 employees are eligible for an exemption from the requirements to provide leave to care for a child whose school is closed, or child care is unavailable in cases where the viability of the business is threatened.
  • These requirements are subject to a 30-day non-enforcement period for good faith compliance efforts.

https://irs.gov/coronavirus should be checked for updates after March 31, 2020.

Posted on 03/31/2020 by Daniel Layton.

https://youtu.be/T_TjsXdfPEQ
Call Now Button