Internal Revenue Service - Notices
Since the emergency declaration on March 13, 2020 concerning the Novel Coronavirus Disease (“COVID-19”), the Internal Revenue Service (“IRS”) has issued different notices to provide taxpayers with important information as to the reliefs granted by this federal agency. Some of the most important reliefs are the following:
Filing Date Extension
The IRS announced on March 21, 2020, that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020. In this regard, taxpayers are not required to file additional forms to qualify for this automatic extension.
Tax Payment Deferral *
On March 21, 2020, the IRS announced that all taxpayers including individuals, trusts and estates, corporations, and other non-corporate tax filers can defer their federal income tax payments due on April 15, 2020, until July 15, 2020, regardless of the amount owed, without penalties or interest.
Payroll Tax Credits
The U.S. Treasury Department and the U.S. Department of Labor announced on March 20, 2020, that small and midsize employers can benefit from two new refundable payroll tax credits and obtain an immediate and full dollar for-dollar reimbursement for the cost of providing COVID-19 related leave to their employees.
High Deductible Health Plans
On March 11, 2020, the IRS advised that high deductible health plans (“HDHPs”) will not jeopardize their status merely because the health plan provides health benefits associated with testing and treatment of COVID-19 without a deductible, or with a deductible below the minimum deductible required for an HDHP. As a result, an individual with an HDHP that covers theses costs may continue to contribute to a health savings account. For 2020, the IRS defines a HDHP as any plan with a deductible of at least $1,400 for an individual or $2,800 for a family.