March 26, 2020
COVID-19 Government Relations Daily Summary
Illinois State Income Tax July 15th Extension
Thank you for your comments in response to yesterday’s COVID-19 Daily Summary. We are grateful for the Governor’s announcement to extend the state tax filing and payment deadline to July 15th, which benefits a high percentage of taxpayers and tax preparers. ICPAS recognizes the challenges of a 4/15/20 deadline for filing and paying the 2020 1st quarter estimated taxes. We are communicating these concerns to IDOR and will continue to provide you with updates as they develop.
CARES Act Tax Provisions Aim to Stabilize Pandemic-ravaged Economy
The Coronavirus Aid, Relief, and Economic Security (CARES) Act that passed out of the Senate contains tax measures as a part of a $2 trillion aid package designed to help the economic effects of the coronavirus pandemic. While the senate amendments to the House version include a number of tax provisions, the Senate approved legislation must now go back to the House for concurrence. The Senate amendments include: recovery rebates for taxpayers, payroll tax credit refunds, employee retention credits, early withdrawals from retirement plans without Sect 72(t) addition tax assessment, charitable deductions, payroll tax delay, net operating loss deductions, repeal of the excess loss limitations, corporate alternative minimum tax modification, increase of adjusted taxable income percentage, updates to qualified improvement property, suspension of aviation excise taxes, adjustments to high-deductible health plans to cover telehealth and other remote services without a deduction. See Journal of Accountancy for details.
IRS Suspends Key Compliance Programs
The Internal Revenue Service announced it was providing relief to taxpayers by postponing compliance actions in a number of areas. See IR-2020-59 (March 25, 2020).
U.S. Department of Labor Released its First Round of Guidance on the Families First Act
The U.S. Department of Labor’s Wage and Hour Division (WHD) announced its first round of published guidance to provide information to employees and employers about how each will be able to take advantage of the protections and relief offered by the Families First Coronavirus Response Act (FFCRA) when it takes effect on April 1, 2020. See release along with Fact Sheets and FAQs.
AICPA Leads Coalition for Small Business Funding
The AICPA is leading a coalition to encourage Congress to use payroll processors as a way to quickly, efficiently and effectively get stimulus funds distributed to small business employers. See AICPA release and attached open letter to President Trump, Secretary Mnuchin and Members of Congress.
See ICPAS Government Relations Digital Library of COVID-19 Regulatory Updates here.