How Coronavirus Is Affecting Americans’ Taxes
The coronavirus outbreak has affected just about every aspect of Americans’ lives, and that has extended into our annual taxes.
Millions of American employees are expected to be affected in one way or another by the COVID-19 coronavirus, and as a result, Washington, D.C., has been working on a number of relief measures. Over the past few weeks, that effort has included the Internal Revenue Service, which has rolled out a few changes. Unfortunately, the IRS – and as a result, taxpayers – faces a few negative effects as well.
Here’s a quick look at what you need to know concerning changes to your taxes and tax services:
New Deadlines
The IRS initially moved the payment deadline for any federal taxes owed to July 15, but on March 21, the agency pushed back Tax Day itself, extending the deadline to file to July 15.
According to the IRS:
“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, trusts and estates, 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 does, however, ask anyone who is due a refund to file “as soon as possible” and says most refunds still are being issued within 21 days.
Paid Leave Credits
On March 20, the Treasury, IRS and Labor Department jointly announced two refundable payroll tax credits to reimburse small and midsize businesses of less than 500 employees for providing coronavirus-related paid leave. Specifically, employees can get up to 80 hours of paid sick leave and expanded paid child care leave.
Employers will be 100% reimbursed for paid leave, including health insurance costs, and self-employed individuals will receive an equivalent credit. To help out, the IRS has said that businesses can “retain and access funds that they would otherwise pay to the IRS in payroll taxes.”
You can read more about these credits at IRS.gov.
Taxpayer Assistance Centers
The IRS’ Taxpayer Assistance Centers (TACs) are a source of free personal tax help for people who can’t get answers online or by phone, and they provide assistance in more than 150 languages. However, the IRS has been forced to temporarily close all TACs and cease providing face-to-face service amid the coronavirus outbreak. The IRS has not provided a reopening date for these centers. Those who need assistance can call the agency, or they can find some tools at IRS.gov.
McManamon & Co. offers a robust set of tax services, and we’ve remained on our toes throughout the coronavirus outbreak, keeping our clients updated with all the latest IRS changes. And we can do the same for your small or midsize firm, too.
Let us help you figure out how to navigate this shifting tax environment. Give us a call at 440.892.9088 or contact us online today.
Tags: McManamon, small business, small business taxes | Posted in McManamon & Co., small business, small business taxes, taxes