The IRS issued its People’s First Initiative in March to address the COVID-19 situation and the impact it has had on many U.S. taxpayers. As part of this People’s First Initiative, the IRS extended the compliance dates for many filings, payments, elections and filings until July 15, 2020. The IRS website maintains a complete list of all relief provisions.
In late March 2020, the IRS issued Letters 6336 to participants in micro-captive insurance transactions. The participants were identified based upon the disclosure statements (IRS Forms 8886) included within their federal tax returns filings identifying participation in a program. These letters were issued to notify participants of the IRS’s recent successes in challenging the validity of the micro-captive program and requesting that they notify the IRS if participation was terminated.
The CARES Act includes approximately $350 billion for an SBA small business loan program called the Paycheck Protection Program. The goal of this program is to get money to small businesses quickly (and with minimal application requirements). This loan program is also designed to encourage businesses to continue to employ their workers and re-hire (if necessary).
Here is a quick update you on some of the applicable tax-related provisions in the Coronavirus Aid, Relief, and Economic Security (CARES) Act that was signed into law on March 27, 2020.
Recovery rebates for individuals. The CARES Act provides for the government to send up to $1,200 payments to eligible taxpayers and $2,400 for married couples filing joints returns.
The IRS added some Frequently Asked Questions/Answers to its website to address some common questions related to the People’s First Initiative and the recent postponement of filing and payment dates. Important among these FAQs includes a confirmation that the due date for tax payments due for tax year 2019 has been extended to July 15th,
In response to the growing impact that COVID-19 is having on our daily lives and economy, the IRS released its People First Initiative. This Initiative was released on March 25, 2020, and includes many taxpayer friendly provisions. As explained by the Tax Commissioner, this Initiative was designed to “provide immediate relief to help people facing uncertainty over taxes.”