Over the past several days, there have been many developments in the federal government’s response to COVID-19. Below is a summary some of the developments. We will continue to send summaries of additional developments.
Federal Tax Extension
- The April 15 due date for federal income tax filing and payment has been postponed to July 15, regardless of the size of payment owed and without the need to file an extension
- The relief is on all:
- Federal income tax payments, including tax payments on self-employment income
- Federal estimated income tax payments, including tax payments on self-employment income due on April 15 for the taxpayer’s 2020 tax year
- Interest, penalties and additions to tax will begin to accrue again on July 16, 2020.
- This did not extend 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.
- Please click here for more information
Health Plans and Health Savings Accounts (HSA)
Health plans that qualify as high deductible plans will not lose their status by covering the cost of testing or treatment of COVID-19 even if the deductible hasn't been met.
Additional Law Changes, Tax Credits & Exemptions
The Families First Coronavirus Response Act provides family and medical leave, as well as sick leave, to qualifying employees and tax credits to employers and the self-employed providing the leave. See the details.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provided additional tax and economic benefits for business and individuals. See our overview of the CARES Act to learn more about rebates for individuals and tax benefits for businesses.
IRS Information Site
Ongoing information on the IRS and tax legislation response to COVID- 19 can be found here.
For more information on business management, tax and HR information related to COVID-19, please see our website. We will continue to be in contact with information as it becomes available. We wish you good health and safety during this difficult time. As always, our team is here to answer any questions you may have.