​​​​​​​​​​COVID-19 Tax News & FAQ

CARES Act s​ummary

The Coronavirus Aid, Relief, and Economic Security Act (CARES) is Phase 3 coronavirus legislation responding to the public health and economic crisis. The goal of the legislation is to provide recovery checks to most Americans, strengthen unemployment insurance and increase funding for public health programs. View full summary >

2019 tax returns due July 15, 2020

Notice 2020-18 provides that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020. Read more >

COVID-19 tax credits available now

Small and midsize employers can begin taking advantage of two new refundable pay​roll tax credits designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing COVID-19-related leave to their employees. This relief to employees and small and midsize businesses is provided under the Families First Coronavirus Response Act (Act). Read more >

COVID-19 tax FAQ

The IRS has released an extensive Filing and Payment Deadlines Questions and Answers that answers frequently asked questions related to the relief provided in the Notice 2020-18.

Will states follow the federal extension?
It depends, some states have. AICPA has a chart tracking the state tax office closings, filing delays and extensions.

​​What do we know, if anything, about the taxability of the proposed stimulus checks?
The check will be in the form of a refundable credit and is not taxable income.

Will taxpayers with outstanding IRS debt actually get the money or will it be applied to their balance?
We expect that you'll still receive the stimulus; however, further IRS guidance is needed to confirm.

Mnuchin said that the checks would be direct deposited into taxpayer bank accounts. What tax returns would they pull this bank account information from?
Likely, the IRS will use the information received from the 2019 or 2018 tax return. The IRS is capable of confirming that the account​ information is still current. We expect the IRS to provide further guidance soon.

How do the payroll credits work?
There is relief for employees and midsize businesses provided under the Families First Coronavirus Response Act (Act). The Act gives businesses with fewer than 500 employees funds to provide employees with up to 80 hours of paid leave, either for the employee’s own health needs or to care for family members. More details can be found in IR-2020-57.

When a state orders nonessential businesses to close – are tax offices considered essential or nonessential?
This is defined by each state. We recommend closely reading your state’s official stay-at-home order.​

Other resources

Coronavirus Tax Relief — The IRS has established a special section focused on steps to help taxpayers, businesses and others affected by the coronavirus.

State & Federal Tax Office Closings, Filing Delays & Extensions — Forbes article that is tracking the current state and federal status.

State Tax Filing Guidance — AICPA chart that is tracking summaries of states filing relief.

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