IRS Provides Additional COVID-19 Tax Relief
On March 27, 2020, the U.S. Department of the Treasury and IRS issued two notices providing additional information on SARS-CoV-2 virus and the incidence of COVID-19 (COVID-19) relief measures for taxpayers.
- Notice 2020-20 postpones the federal due date for filing Form 709 and making federal gift and generation-skipping transfer tax payments from April 15 to July 15, 2020. This is an update to previously issued Notice 2020-18, which automatically postponed the filing and payment deadline for income tax returns and 2020 estimated tax payments due April 15, 2020, to July 15, 2020, as discussed in a previous BKD Thoughtware® alert.
- Notice 2020-21 provides that the tax credits available to employers under the Families First Coronavirus Response Act (FFCRA) for paid sick leave and expanded family and medical leave apply to wages paid for the period beginning on April 1, 2020, and ending on December 31, 2020. For self-employed individuals, the tax credits are available for the applicable days occurring during this period. This guidance aligns with the Department of Labor’s (DOL) determination of the effective date for employers’ compliance with the paid leave provisions under the FFCRA. The IRS also posted a link to the DOL Families First Coronavirus Response Act: Questions and Answers page. View this Thoughtware alert for more information on these tax credits.
BKD COVID-19 Resource Center
This is an unprecedented time with many challenges and uncertainties. In response, BKD has created a COVID-19 Resource Center to help disseminate important information for our clients and friends as we evaluate ways to mitigate the inevitable financial effects. Through this resource center, we’ll keep you up to date with relevant news, changing guidelines, new regulations and anything else we believe you need to know.
Be sure to reach out to your BKD Trusted Advisor™ or use the Contact Us form below if you have questions.