Other Provisions of CARES Act
As discussed in our separate post discussing Recovery Rebates, the Coronavirus Aid, Relief and Economic Security (CARES) Act was enacted on March 27, 2020. In addition to the Recovery Rebates discussed in that separate post, the law also contains numerous other tax provisions. Below is a summary of the other major provisions.
Qualified Improvement Property: A tax provision that has languishe...
The Coronavirus Aid, Relief and Economic Security (CARES) Act was enacted on March 27, 2020. The law includes a provision to provide recovery rebates for certain taxpayers.
The recovery rebates will be sent to eligible taxpayers by the IRS without taxpayers needing to take any action. The law directs the IRS to send the recovery rebates as soon as possible, and the IRS indicated in a news ...
New York Due Date Deferral
New York has finally issued guidance that confirms that the New York State due date will be deferred to match the new federal due date for New York State income tax returns and payments.
In Notice N-20-2, Announcement Regarding Relief from Certain Filing and Payment Deadlines due to the Novel Coronavirus, COVID-19, New York indicates that both the due date for filing 2019 returns and the due dat...
Federal Paid Leave for COVID-19
On March 18, 2020, the Federal Families First Coronavirus Response Act was enacted. The paid leave rules are effective 15 days after the enactment date, which is April 2, 2020 and they expire after December 31, 2020.
The law generally requires employers with fewer than 500 employees to provide certain paid leave for employees.
Employees who are quarantined due to the coronavirus and/or exper...
New York Paid Leave for COVID-19
On March 18, 2020, New York State enacted emergency legislation that provides certain paid family leave and sets forth other rules related to employees who have been quarantined as a result of COVID-19.
Employers in New York with 10 or fewer employees and a net income of less than $1 million must provide job protection for quarantined employees and access to paid family leave and disability bene...
Late-Filed New York Sales Tax Returns
New York State has announced that certain businesses that missed the March 20, 2020 due date for filing sales tax returns can obtain relief from penalties and interest.
Notice N-20-1 indicates that businesses that were unable to meet that due date due to the COVID-19 outbreak can request relief by going to the New York State Department of Taxation and Finance website and clicking on: Tax Relie...
More on Federal Filing Due Date
The IRS has issued Notice 2020-18, which supersedes Notice 2020-17.
The notice confirms that all income tax payments or federal income tax returns due April 15, 2020 are automatically extended to July 15, 2020. Taxpayers do not have to file an extension request, and there is no limitation on the amount of the payment that may be postponed. For this purpose, payments due on April 15, 2020 inc...
Federal Filing Due Date Moved
On March 20, 2020, the Secretary of the Treasury announced by tweet that all taxpayers and businesses have until July 15, 2020 to file and make payments without interest or penalties.
Formal guidance from the IRS should follow shortly.
It is expected that state governments will offer similar relief for state income taxes; however, guidance will need to be issued by the states.
Federal Extension for Tax Payments
Notice 2020-17 was superseded by Notice 2020-18. See our March 24, 2020 post.
On March 18, 2020, the IRS issued Notice 2020-17 which delays the due date for tax payments but, unfortunately, does not delay the due date for filing 2019 tax returns.
The due date for making federal income tax payments due on April 15, 2020 is postponed to July 15, 2020 for payments by individual taxpayers who owe ...
1065 Disclosures about Owners
Form 1065 for the 2019 tax year includes a new required disclosure on Schedule K-1 of the tax identification number and name for any partner/member that is a disregarded entity. Since it can often be time consuming to obtain this information, practitioners should work on obtaining this information from clients as soon as possible.
Certain other disclosures about the owners of a partnership or ...