The Treasury Department and the IRS are providing payment relief to individuals and businesses in response to the COVID-19 Outbreak.  The filing deadline remails April 15, 2020, but you can obtain an automatic extension to file.  The payment has been extended automatically until July 15, 2020 for up to $1 million for individuals and $10 million for C Corporations of their 2019 tax due.  Taxpayers do not need to file any additional forms to qualify for this relief.

The relief also includes estimated tax payments for the tax year 2020 that are due on April 15, 2020.

Please be aware of some key deadlines for this filing season:

January 31, 2020

W-2s & 1099-MISC (non-employee compensation - box 7)

These forms were always due to the recipient by January 31st each year, but now they are required to be summited to the IRS and Social Security Administration by January 31st as well. The government is mandating this in order to improve their efforts in combatting fraud.

March 16, 2020

1065 - Partnership Tax Returns

1120S - S Corporation Tax Returns

April 15, 2020

1040 - Individual Income Tax Returns

1041 - Estate & Trust Tax Returns

1120 - C Corporation Tax Returns

May 15, 2020

990 - Tax Exempt Organization Tax Returns

July 31, 2020

5500 - Employee Benefit Plan Tax Returns

Tax Alerts
October 01, 2020
Tax Briefing(s)

The Treasury and IRS have issued guidance on the recent order by President Trump to defer certain employee payroll tax obligations on wages paid from September 1, 2020, through December 31, 2020. Under the guidance:

The IRS has released the 2020-2021 special per diem rates. Taxpayers use the per diem rates to substantiate the amount of ordinary and necessary business expenses incurred while traveling away from home. These special per diem rates include the special transportation industry meal and incidental expenses (M&IEs) rates, the rate for the incidental expenses only deduction, and the rates and list of high-cost localities for purposes of the high-low substantiation method. Taxpayers using the rates and list of high-cost localities provided in the guidance must comply with Rev. Proc. 2019-48, I.R.B. 2019-51, 1390.

The Treasury and IRS have issued final regulations that limit the Code Sec. 245A dividends received deduction and the Code Sec. 954(c) exception on distributions supported by certain earnings and profits not subject to the integrated international tax regime created by the Tax Cuts and Jobs Act (TCJA) ( P.L. 115-97). Proposed regulations and temporary regulations, issued on June 18, 2019, are adopted and removed, respectively.

Treasury has issued final and amended regulations on the rules for distributions made by terminated S corporations during the post-termination transition period (PTTP). These regulations apply after an S corporation has become a C corporation.

Final regulations clarify that the amount of the rehabilitation credit for a qualified rehabilitated building (QRB) is determined as a single credit in the year the QRB is placed in service. This is the case even though the credit is allocated ratably over a five-year period. The final regulations adopt without modification proposed regulations released earlier this year ( NPRM REG-124327-19).

The IRS has released final regulations that clarify the definition of a "qualifying relative" for purposes of various provisions for tax years 2018 through 2025. These regulations generally affect taxpayers who claim federal income tax benefits that require a taxpayer to have a qualifying relative.

The IRS has announced that Medicaid coverage of Coronavirus Disease 2019 (COVID-19) testing and diagnostic services is not minimum essential coverage for purposes of the premium tax credit under Code Sec. 36B.

The IRS has released guidance in the form of questions and answers with respect to certain provisions of the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act), and the Bipartisan American Miners Act of 2019 (Miners Act).

Final regulations provide additional guidance on the base erosion and anti-abuse tax (BEAT) under Code Sec. 59A. The regulations also address certain aspects of the BEAT under Code Secs. 1502 and 6031.