COVID-19 Updates

IRS Extends Deadline and Offers Payment Relief for COVID-19

 

We are committed to keeping you updated on all orders and notices that are provided from government officials as it pertains to taxes and business operations. 

The following three recent government announcements directly affect tax-related matters:

  • Tax Filing Extension
  • Payment Relief
  • Tax Credits for Paid Leave

Tax Filing Extension

On March 21, 2020 The Treasury Department and Internal Revenue Service announced that the federal income tax filing due date has been extended from April 15, 2020 to July 15, 2020. This is an automatic extension for all taxpayers.

No additional forms must be filed for this extension. If, however, a tax-filing extension is still needed beyond July 15, the regular extension filing guidelines must be followed by filing Form 4868. 

The IRS is working hard to ensure that refunds are not affected for those that need these additional funds during this time. 

“Even with the filing deadline extended, we urge taxpayers who are owed refunds to file as soon as possible and file electronically,” said IRS Commissioner Chuck Rettig. “Filing electronically with direct deposit is the quickest way to get refunds. Although we are curtailing some operations during this period, the IRS is continuing with mission-critical operations to support the nation, and that includes accepting tax returns and sending refunds. As a federal agency vital to the overall operations of our country, we ask for your personal support, your understanding – and your patience. I’m incredibly proud of our employees as we navigate through numerous different challenges in this very rapidly changing environment.”

Payment Relief 

In conjunction with the filing deadline on July 15, payment relief has also been granted based upon the same due date. Payments, of any amount, owed to the IRS are not due until July 15, 2020. No penalties or interest will be owed upon the amount due if paid on or before July 15. This deferment applies to all taxpayers, including individuals, self-employed tax payers, trusts and estates, corporations and other non-corporate tax filers. 

Tax Credits for Paid Leave

Two new refundable payroll tax credits have been created in response to the financial strain the Coronavirus shutdowns have placed upon businesses. 

The Families First Coronavirus Response Act, signed by President Trump on March 18, 2020, allows small and midsize employers to begin taking advantage of this tax credit immediately. It allows for immediate reimbursement to employers, dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees. All American businesses with fewer than 500 employees will be provided funds to allow employees paid leave, either for the employee’s own health needs or to care for family members. For more detailed information concerning these refundable payroll tax credits, see the explanation from the IRS or call our office to speak to a tax accountant immediately. 

As always, Perry & Associates stands ready to help in whatever way we can. Call us for additional assistance – (740) 373-0056.