Tax filing extension

March 20, 2020 On March 20, Treasury Secretary Mnuchin announced that the tax filing deadline has been extended to July 15, 2020. According to Mnuchin, “All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.” Note that this is a follow-up announcement to Notice 2020-17 that had previously only extended the payment deadline until July 15, 2020.

Tax update: Treasury Department and IRS defer tax payment deadline 90 days

March 19, 2020 The Treasury Department and the IRS have announced special payment relief in response to the COVID-19 pandemic. This information is contained in Notice 2020-17. Key details are as follows:

• The income tax paymentdeadline for individual returns is automatically extended until July 15, 2020 for up to $1 million of 2019 tax due.
• Payment relief applies to all individual returns—including self-employed individuals and all entities other than C Corporations (e.g., trusts or estates).
• For C Corporations, the income tax payment deadline is also automatically extended until July 15, 2020 for up to $10 million of 2019 tax due.
• Tax payment relief also includes estimated tax payments for 2020 that are normally due April 15.
• Postponement of tax payments applies to federal returns only.
• While payments can be deferred, the filing deadline has NOT been extended. Taxpayers are expected to file returns by April 15, 2020, or file an extension.
• The IRS encourages Americans who can file their taxes before April 15, 2020 to do so in order to take advantage of any refund due to them.

Family and Medical Leave Act (FMLA) expanded to provide relief to those affected by COVID-19

March 20, 2020 “The Families First Coronavirus Response Act” (FFCRA), which goes into effect April 2, 2020 and expires December 31, 2020, responds to the coronavirus outbreak by providing additional assistance in the areas of COVID-19 testing, sick leave, food assistance, and more. We’ve compiled key details of FFCRA that we believe you need to know. In summary, the Act:

• Requires private insurance plans to provide free COVID-19 testing
• Requires employers to provide emergency paid sick leave to workers affected by COVID-19 and expands family and medical leave.
• Offers increased funding for state unemployment insurance, food stamp and nutritional programs.

U.S. Small Business Administration (SBA) offering disaster assistance in response to COVID-19

March 21, 2020 Under the recently enacted Coronavirus Preparedness and Response Supplemental Appropriations Act (the Act), small businesses that have suffered substantial economic injury as a result of COVID-19 can apply for low-interest federal disaster loans through SBA. Small businesses and nonprofits can apply for working capital loans of up to $2 million. We’ve highlighted the following key details of the Act for you here, but you can also learn more by visiting the COVID-19 disaster assistance page on SBA’s website.

• State governors must first request access to the Economic Injury Disaster Loan program. Once the declaration is made, information on the application process for disaster loan assistance will be made available to affected small businesses within the given state.
• Loans carry an interest rate of 3.75% for small businesses and 2.75% for nonprofits.
• Loans can be used to cover accounts payable, debts, payroll and other bills.
• Loans can be offered with long-term repayments in order to keep payments affordable—up to a maximum of 30 years. Terms are determined on a case-by-case basis.
• Businesses will apply for loans online and select “Economic Injury” as the reason for seeking assistance.
• SBA offers disaster assistance via its customer service center. If you have questions or want to check if your state is eligible, contact U.S. Small Business Administration via phone at 800-659-2955 (TTY: 800-877-8339) or e-mail disastercustomerservice@sba.gov.