U.S. Tax and Economic Resources related to the Coronavirus

We hope you and your loved ones are managing well during this difficult time. In addition to health concerns, there are also economic concerns. The U.S. federal government has enacted legislation in order to help alleviate some of the economic impact created by COVID-19 and the related restrictions.

We have prepared a number of blog posts with some information on the various laws and provisions which may be of benefit to you. Note that you can find the most up-to-date direct information from the IRS here.

Tax Deadline

On April 9, 2020, the IRS released Notice 2020-23, which provides clarification on their earlier announcements regarding delayed tax filing and payment deadlines. This notice clarifies that the deadline to July 15, 2020 indeed applies to taxpayers living abroad who would otherwise have a June 15th deadline. The notice further clarifies that the extension until July 15, 2020 applies to international disclosure and other forms which are filed along with the Form 1040. No action is required to obtain this extension – it is automatic. Note that an extension would need to be filed to obtain an extension beyond July 15th.

Recovery Rebates

The recovery rebates have been one of the most publicized provisions. American citizens and residents will receive one-time cash payments of up to $1,200 (or $2,400 per married couple), plus an additional $500 per child (age 16 and under). The payments will be available to taxpayers with incomes of up to $75,000 (or $150,000 for married couples). Click here for more details.

Families First Coronavirus Response Act – signed into law March 18, 2020

This act directly impacts employers, by providing four credits and one tax exemption. The tax credits include payroll sick leave credits and payroll family leave credits for employers and self-employed individuals. Click here for more details.

Coronavirus Aid, Relief, and Economic Security (CARES) Act – signed into law March 27, 2020

This law includes a multitude of provisions, both for individuals and for businesses. Highlights for individuals include the recovery rebates, as well as temporary changes to the retirement distribution rules. Significant provisions for businesses include the Paycheck Protection Program, the Employee Retention Credit, delayed payroll tax payments, and updates to the Small Business Economic Injury Disaster Loan program. Click here for more details.

Economic Injury Disaster Loan (EIDL) Program and Paycheck Protection Program (PPP)

These loan programs are applicable to small businesses, including sole proprietors and independent contractors. Click here for more details.

Last updated 4/10/2020

The material appearing in this communication is for informational purposes only and should not be construed as legal, accounting, or tax advice or opinion provided by Lodder CPA PLLC. This information is not intended to create, and receipt does not constitute, a legal relationship, including, but not limited to, an accountant-client relationship. Although these materials have been prepared by a professional, the user should not substitute these materials for professional services, and should seek advice from an independent advisor before acting on any information presented. Lodder CPA PLLC assumes no obligation to provide notification of changes in tax laws or other factors that could affect the information provided.