The Latest Tax Related Coronavirus Actions
The federal government is racing to ease the pain facing the US economy from the Coronavirus pandemic. Here is a summary of important tax related coronavirus actions and federal tax legislation recently enacted to ease tax compliance burdens and economic pain caused by Coronavirus.
Tax filing and payment deadlines postponed
All taxpayers with a Federal income tax return or a Federal income tax payment due on April 15, 2020 is automatically postponed to July 15, 2020, regardless of the size of the payment owed. No forms need to be filed to receive the extension. No extension is provided for the payment or deposit of any other type of Federal tax, such as estate or gift taxes, or the filing of any Federal information return.
The relief is for:
- Federal income tax payments (including tax payments on self-employment income) and Federal income tax returns due on April 15, 2020 for the person’s 2019 tax year, and
- Federal estimated income tax payments (including tax payments on self-employment income) due on April 15, 2020 for the person’s 2020 tax year.
No interest, penalty, or addition to tax for failure to file the postponed income tax returns or pay the postponed income taxes will accrue. Interest, penalties and additions to tax will begin to accrue on July 16, 2020.
Payments from Health Savings Accounts
Any payments from Health Savings Accounts (HSAs) that are made to test for or treat COVID-19 don’t affect the status of the account as an HSA (and don’t cause a tax for the account holder) even if the HSA deductible hasn’t been met. Vaccinations continue to be treated as preventative measures that can be paid for without regard to the deductible amount.
Tax credits and a tax exemptions for businesses
On March 18, President Trump signed into law the Families First Coronavirus Response Act which eased the compliance burden on businesses. The Act includes the four tax credits and one tax exemption. Read details about the Families First Coronavirus Response Act here.
IRS information site
Ongoing information on the IRS and tax legislation response to COVID- 19 can be found here.
If you have questions about the above information or any other matters, related to COVID-19 or not, please contact us.
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