As the COVID-19 (coronavirus) outbreak continues, the Internal Revenue Service is taking multiple steps to help small businesses. (See the complete IRS Operations statement at IRS.gov.)
Tax Day now July 15
The Treasury Department and Internal Revenue Service announced March 21 that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020.
Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, corporations and other non-corporate tax filers as well as those who pay self-employment tax.
Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief. The IRS urges taxpayers who are due a refund to file as soon as possible.
For a list of frequently asked questions, go to the Filing and Payment Deadlines Questions and Answerspage at IRS.gov.
The U.S. Treasury Department, Internal Revenue Service, and the U.S. Department of Labor recently announced that soon, small and midsize employers can begin taking advantage of two new refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing coronavirus-related leave to their employees.
This relief to employees and small and midsize businesses is provided under the Families First Coronavirus Response Act, signed by President Trump on March 18, 2020.
View the complete March 20 IRS news release.
High-deductible health plans can cover coronavirus costs
The IRS recently advised that high-deductible health plans (HDHPs) can pay for 2019 Novel Coronavirus COVID-19 related testing and treatment, without jeopardizing their status. This also means that an individual with an HDHP that covers these costs may continue to contribute to a health savings account (HSA).
See the recent IRS news release: IRS: High-deductible health plans can cover coronavirus costs for more information.