Coronavirus tax relief

By Chris J. Scroggin

The federal government, including the U.S. Treasury Department and the IRS, have taken remarkable steps to assist individuals and small businesses affected by the efforts to prevent coronavirus from spreading unchecked.

These assistance efforts have been implemented incredibly rapidly for the federal government and should help those who have been negatively affected by the events of the past few weeks.

The initiatives below were passed as of March 21, so there may be new legislative proposals over the next few days that are not listed here.

High Deductible Health Insurance Plans (HDHPs)
HDHPs are now permitted to cover the cost of testing and treating any covered individual afflicted by the COVID-19 virus BEFORE plan deductibles are met. As already permitted, any vaccination cost is considered preventative care and can be paid per current plan coverages.

Deferral of Tax Payments
Tax payments that would normally be required by April 15 have been deferred until July 15, with no penalties or interest assessed. This allows individuals and small businesses owing less than $10 million in federal tax to delay payment by up to three months. This is for 2019 income taxes payable only and does not allow businesses to delay payment of employment taxes or employee withholdings.

Paid Leave for Workers
Beginning April 5, workers affected by the COVID-19 virus, including the illness of a dependent, may take up to 80 hours of paid sick leave. This includes time taken off because childcare is not available. This applies to all employers except those under 50 employees where the business may be threatened by the absence of critical workers. Companies that do allow this paid leave will be rapidly reimbursed through reduced payroll tax payments.

Federal Tax Filing Date Extended
In addition to the deferment of 2019 Income Taxes due until July 15, the IRS has announced the filing of 2019 Individual and business income tax returns are now automatically extended to July 15. This automatic extension is penalty- and interest-free and no additional forms need to be filed to take advantage. The IRS does encourage all taxpayers expecting refunds to file as soon as possible.

Arizona Tax Filing Date Extended
The Arizona Department of Revenue announced it would mirror the federal tax-filing deadlines, allowing all Arizona taxpayers an extra 91 days to complete
their state returns. We expect most states to follow the IRS guidelines, but please call Chaston Tax at 520-568-3303 to check on a state other than Arizona.

In these tumultuous times, Chaston Tax and Accounting stands ready to assist Maricopa’s businesses and individuals with all of their tax and accounting needs. As Maricopa’s first CPA firm, we have over 100 combined years of experience with all matters of taxation, complex accounting and bookkeeping
solutions.

ChastonTax.com