Right now, your highest priority is the health of those you love and yourself. If you have a moment to read about some non-medical but important matters related to the health crisis, we have summarized the IRS (federal) and California action already taken and federal tax legislation already enacted to ease tax compliance burdens and economic pain caused by COVID-19 (commonly referred to as Coronavirus). Please make sure to bookmark this page as we will be updating it with additional information and developments as they evolve.
Filing and payment deadlines deferred. After briefly offering more limited relief, the IRS almost immediately pivoted to a policy that provides the following to all taxpayers-meaning all individuals, trusts, estates, partnerships, associations, companies or corporations regardless of whether or how much they are affected by COVID-19.
California has also extended its tax filing and payment deadline to July 15, 2020, waiving interest and late filing and late payment penalties for all individuals and business entities for specific tax payments and fees.
Business Owners & Paycheck Protection:
Tax credits and a tax exemption to lessen the burden of COVID-19 business mandates. On March 18, President Trump signed into law the Families First Coronavirus Response Act (the Act, PL 116-127), which eased the compliance burden on businesses. The Act includes the four tax credits and one tax exemption that we have further outlined in this article.
Covid-19 CARES Act:
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, 2020. The legislation provides for $2.2 trillion in economic relief to businesses and individuals affected by the COVID-19 pandemic.
Please note that the law provides for loan provisions within the Act to support the continued employment of your workforce. Of the $2.2 trillion, nearly $350 billion has been dedicated toward a Payroll Protection Program (PPP) aimed at preventing layoffs and business closures while your employees have to stay home during the covered period (February 15, 2020, through June 30, 2020).
While the information regarding CARES is beginning to flow rapidly, we thought we’d provide you with a high-level synopsis of the program.