Your Guide to Coronavirus Tax Relief Links on irs.gov

IRS FAQ: Economic Impact Payment Information Center (Updated May 8, 2020) 

The information center includes answers to frequently asked questions related to Economic Impact Payments (EIPS). Topics include: 

• EIP Eligibility and General Information
• Requesting My Economic Impact Payment
• Calculating My Economic Impact Payment
• Receiving My Payment
• More About the Economic Impact Payment

Link: https://www.irs.gov/coronavirus/economic-impact-payment-information-center

IRS FAQ: Get My Payment (Updated April 26) 

For most taxpayers, payments are automatic, and no further action is needed. This includes taxpayers who filed tax returns in 2018 and 2019 and most seniors and retirees. Questions on this page include:

• Eligibility and General Information
• Accessing Get My Payment
• Payment Status
• Payment Status Not Avialable
• Bank Account Information
• Locked/Status Unavailable
• Error Messages
• Address Changes

Installment Agreement Direct Debit FAQs

For taxpayers under an existing Installment Agreement, payments due between April 1 and July 15, 2020 are suspended. Taxpayers who are currently unable to comply with the terms of an Installment Payment Agreement, including a Direct Debit Installment Agreement, may also suspend payments during this period if they prefer. However, by law, interest will continue to accrue on any unpaid balances. Other information includes:

• How to suspend direct debit payments for a DDIA?

• Will direct debit payments continue to be deducted unless the taxpayers stops them?

Link: https://www.irs.gov/newsroom/installment-agreement-direct-debit-frequently-asked-questions

COVID-19-Related Tax Credits for Required Paid Leave Provided by Small and Midsize Businesses FAQs

Your one stop shop for all information related to the FFCRA Paid Sick and Family Leave Credits!

Topic Overviews

• Overview of COVID-19-Related Tax Credits for Small and Midsize Businesses

• Overview of Paid Sick Leave Refundable Credit

• Overview of Paid Family Leave Refundable Credit

• Payment of the Sick and Family Leave Credit

Individual Topic FAQ Pages

• Credit Basics

• Determining the Amount of the Tax Credit for Qualified Sick Leave Wages

• Determining the Amount of the Tax Credit for Qualified Family Leave Wages

• Determining the Amount of Allowable Qualified Health Plan Expenses

• How to Claim the Credits

• How Should an Employer Substantiate Eligibility for Tax Credits for Qualified Leave Wages?

• Periods of Time for Which Credits are Available

Special Issues for Employers FAQs

• Taxation and Deductibility of Tax Credits

• Interaction of FFCRA Tax Credits with Other Tax Credits

• Use of Third-Party Payers

• Other

Employee Retention Credit FAQs

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), enacted on March 27, 2020, is designed to encourage Eligible Employers to keep employees on their payroll, with an employee retention tax credit.

Employee Retention Credit FAQs

• What is the Employee Retention Credit?

• Is my business partially suspended for the purposes of the Employee Retention Credit?

• What is a “significant decline in gross receipts”?

• How is the maximum amount of the Employee Retention Credit available to Eligible Employers determined?

• What are “qualified wages”?

Eligible Employer FAQs

• Who is an Eligible Employer?

• Is an Employer required to pay qualified wages?

• Can Eligible Employers claim the Credit for qualified wages paid in March?

Tax Implications FAQs

• Against what employment taxes does the Employee Retention Credit apply?

• What makes the credit “fully refundable”?

• How does an Eligible Employer claim the refundable tax credit for qualified wages?

Different Scenarios

• Can an Eligible Employer paying qualified wages fund its payments of qualified wages before receiving the credits by reducing its federal employment tax deposits?

• Can an Eligible Employer reduce its federal employment tax deposit by the qualified wages that it has paid without incurring a failure to deposit penalty?

• How can an Eligible Employer that is paying qualified wages fund the payment of these wages if the Eligible Employer does not have sufficient federal employment taxes set aside for deposit to cover those payments? Can the employer get an advance of the credits?

• May an Eligible Employer receive both the tax credits for the qualified leave wages under the FFCRA and the Employee Retention Credit under the CARES Act?

Link: https://www.irs.gov/newsroom/faqs-employee-retention-credit-under-the-cares-act

The Families First Coronavirus Relief Act (FFCRA) requires certain employers to pay sick or family leave wages to employees who are unable to work or telework due to COVID-19 related circumstances. Employers are entitled to a refundable tax credit for the required leave paid, up to specified limits.

Paid Sick and Expanded Family and Medical Leave

• What is the Families First Coronavirus Response Act (FFCRA) and what does it mean for my small business?

• Will my small business have to provide paid sick leave and expanded family and medical leave to employees?

• How do you calculate sick leave payments?

• Do reduced hours constitute sick leave?

• What are my employee’s rights?

Tax preparation related questions include:

• What records do I need to keep when my employee takes paid sick leave or expanded family and medical leave?

• If I want to pay my employees more than they are entitled to receive for paid sick leave or expanded family and medical leave, can I do so and claim a tax credit for the entire amount paid to them?

Link: https://www.dol.gov/agencies/whd/pandemic/ffcra-questions

Eligibility

• Who is eligible for relief?

• What form numbers are covered?

• What types of tax are included?

• What about installment payments?

Tax Payments

• What if a tax payment is already scheduled?

• What about quarterly estimated payments?

IRAs & HSAs

• Does the July 15 deadline apply to contributions for retirement or health savings accounts?

• If I made excess deferrals to a retirement account, can I exclude those deferrals from income?

Other FAQs:

• Filing date deadline for 2016 returns

• Changes to the estimated tax penalty for 2019

Link: https://www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers

Notice 2020-26 - Six Month Extension of Time to File Application for Tentative Carryback Adjustment

The IRS has granted a six-month extension of time to file Form 1045 or Form 1139, as applicable, with respect to the carryback of a net operating loss that arose in any taxable year that began during calendar year 2018 and that ended on or before June 30, 2019.  Individuals, trusts, and estates would file Form 1045, and corporations would file Form 1139.

Link: https://www.irs.gov/pub/irs-drop/n-20-26.pdf

Notice 2020-23, April 9, 2020, Additional Relief for Taxpayers Affected by Coronavirus

To help taxpayers, the Department of Treasury and the Internal Revenue Service announced the extension of key tax deadlines for individuals and businesses. The most recent guidance issued by the IRS extends a variety of tax filings and payment obligations to the July 15 deadline. This includes:

• The deadline for unclaimed refunds from 2016 tax returns

• Individuals, trusts, estates, corporations and other non-corporate tax filers

• Americans who live and work abroad

• Partnership return filings

• Individuals or corporations with estimated tax payments due between April 1 and July, 15.

Notice 2020-22: Relief from Penalty for Failure to Deposit Employment Taxes

This notice details the specifics of the relief given to employers who are entitled to the new refundable tax credits provided under the Families First Act and CARES Act.

Employers are eligible for the tax credit through the FFCRA if:

• they are paying qualified sick leave wages and qualified family leave wages as well as qualified health plan expenses allocable to Qualified Health Plan Expenses

  Employers are eligible for the tax credit through the CARES if:

• they are experiencing a full or partial business suspension due to orders from a governmental authority due or experiencing a statutorily specified decline in business of up to fifty percent of the qualified wages

Section 3 of the notice gives employers relief from the failure to timely deposit Employment Taxes penalties to the extent that the amounts not deposited are equal to or less than the amount of refundable tax credits under the Families First Act and the CARES Act

*See also the COVID-19-Related Tax Credits for Required Paid Leave Provided by Small and Midsize Businesses FAQs and Employee Retention Credit under the CARES Act FAQ

Link: https://www.irs.gov/pub/irs-drop/n-20-22.pdf

Notice 2020-21: Effective Date for Employment Tax Credits under the FFCRA

Contains the specifics of the changes brought about by the Families First Coronavirus Response Bill. Notes that tax credits for qualified sick leave wages and qualified family leave will apply to wages paid for the period beginning on April 1, 2020, and ending on December 31, 2020.

Link: https://www.irs.gov/pub/irs-drop/n-20-21.pdf

Notice 2020-20: Update to Notice 2020-18

Amplifies Notice 2020-18 and updates regulations related to gifts and generation-skipping transfer tax filing and payment deadlines.

• New due date for filing Forms 709 and making payments of federal gift and generation-skipping transfer tax is July 15, 2020.

• Interest, penalties, and additions to tax with respect to such postponed Forms 709 and payments will begin to accrue on July 16, 2020.

Link: https://www.irs.gov/pub/irs-drop/n-20-20.pdf

Notice 2020-18: Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic

Contains the specifics of the how the IRS will provide relief from tax deadlines to Americans who have been adversely affected by the COVID-19 emergency. Information includes the statutory authorities for many of the changes and the formal grants of relief. Other information includes:

• Definitions of “person” for an “affected taxpayer”

• Formal extensions of the deadline for federal filing and payments

Link: https://www.irs.gov/pub/irs-drop/n-20-18.pdf

Notice 2020-15: High Deductible Health Plans and Expenses Related to COVID-19

Contains specifics on a new health plan that otherwise satisfies the requirements to be a high deductible health plan (HDHP) so that an individual covered by the HDHP will not be disqualified from being an eligible individual who may make tax-favored contributions to a health savings account (HSA).

*(For more information on HDHPs see IR-2020-54)

Link: https://www.irs.gov/pub/irs-drop/n-20-15.pdf

IR-2020-75, April 17, 2020, VA recipients will automatically receive EIPs

Supplemental Security Income (SSI) recipients as well as Veterans Affairs recipients will automatically receive a $1,200 EIP with no further action needed on their part.

The law also provides eligible taxpayers with qualifying children under age 17 to receive an extra $500. For taxpayers who filed tax returns in 2018 or 2019, the child payments will be automatic. However, many benefit recipients typically aren't required to file tax returns. If they have children who qualify, an extra step is needed to add $500 per child onto their automatic payment of $1,200 if they didn't file a tax return in 2018 or 2019.

Those who receive these benefits – including VA, Social Security retirement or disability benefits (SSDI), Railroad Retirement benefits or SSI – and have a qualifying child, can quickly register using the Non-Filers: Enter Payment Info tool.

Veterans Affairs Recipients

The Treasury Department, not the VA, will make these automatic payments. Timing on the payments is still being determined. Recipients will generally receive the automatic payments the way they receive their current benefits. VA recipients who quickly provide IRS with required information about qualifying children can receive $500 per dependent child in addition to their $1,200 individual payment. If beneficiaries do not provide their information to the IRS soon, they will receive their $500 per qualifying child at a later date, depending on when they complete the registration process.

Supplemental Security Income (SSI) recipients as well as Veterans Affairs recipients will automatically receive a $1,200 EIP with no further action needed on their part.

The law also provides eligible taxpayers with qualifying children under age 17 to receive an extra $500. For taxpayers who filed tax returns in 2018 or 2019, the child payments will be automatic. However, many benefit recipients typically aren't required to file tax returns. If they have children who qualify, an extra step is needed to add $500 per child onto their automatic payment of $1,200 if they didn't file a tax return in 2018 or 2019.

Those who receive these benefits – including VA, Social Security retirement or disability benefits (SSDI), Railroad Retirement benefits or SSI – and have a qualifying child, can quickly register using the Non-Filers: Enter Payment Info tool.

SSI Recipients

The Treasury Department, not the Social Security Administration, will make these automatic payments to SSI recipients. Recipients will generally receive the automatic payments by direct deposit, Direct Express debit card, or by paper check, just as they would normally receive their SSI benefits. IRS projects the payments for this group will go out no later than early May. For those with dependents who use Direct Express debit cards, additional information will be available soon regarding the steps to take on the IRS web site when claiming children under 17.

IR-2020-72, April 15, 2020, IRS unveil online application to help with EIPs

The Treasury Department and the IRS unveiled the new Get My Payment with features to let taxpayers know when they will receive their Economic Impact Payment (EIP) and update direct deposit information if the IRS doesn’t already have direct deposit information from your 2018 or 2019 return.

If you have only filed your 2018 tax return and need to change your account information or mailing address, file your 2019 taxes electronically as soon as possible. That is the only way to let the IRS know your new information. To help protect against fraud, Get My Payment cannot update bank account information after an Economic Impact Payment has been scheduled for delivery. Also, due to the large volume of people receiving EIPs, IRS asks taxpayers to check the tool once a day. Get My Payment is updated once daily, usually overnight.

Here is how it works:

• Track the status of their payment, this feature will show taxpayers the payment amount, scheduled delivery date by direct deposit or paper check and if a payment hasn’t been scheduled. They will need to enter basic information including:

• Adding bank account information, this feature will speed receipt of the payment and will need to provide the following additional information:

Note: This tool is specifically designed for 2018 or 2019 filers who want to know the status of their EIP. If you have a filing obligation and have not filed a 2018 or 2019 return you must file a 2019 return to receive the EIP. If you are not required to file a 2018 or 2019 tax return, and want an EIP use the Non-Filers: Enter Payment Info tool.

IR-2020-69, April 10, 2020, New IRS Tool Helps Non-Filers Register for Economic Impact Payments

On April 10, the Treasury Department and IRS launched a new free and easy online tool that enables those who don’t normally file a tax return, or have too little income to file, to register for Economic Impact Payments (EIP) so they can receive their payments faster.

The tool is available only on IRS.gov; users should look for the Non-Filers: Enter Payment Info Here button; there is also a link or their homepage.

Who should use the Non-Filers tool

The tool is designed for people who did not file a tax return for 2018 or 2019 and who don't receive Social Security retirement or disability benefits or Railroad Retirement benefits. Others who should consider using the Non-Filers tool include:

Low-income individuals who haven't filed a 2018 or 2019 return because they made under the $12,200 for individuals and $24,400 for married couples’ threshold

o Veterans beneficiaries and Supplemental Security Income recipients
o Social Security, SSDI and Railroad Retirement beneficiaries with qualifying dependents under the age of 17 
o Students who have not been claimed on someone else’s tax returns 

How to use the Non-Filers tool
For those who don't normally file a tax return, the process is simple and only takes a few minutes to complete. 

1. Go to Non-Filers: Enter Payment Info. 

2. Create an account by providing your email address and phone number; and establishing a user ID and password.

3. Input your filing status (Single or Married filing jointly) and personal information.

        Note: Make sure you have a valid Social Security number for you, your spouse, and any dependents

4. Check the “box” if someone can claim you as a dependent or your spouse as a dependent.

5. Complete your bank information (otherwise we will send you a check).

6. Enter personal information to verify yourself. You will need your driver’s license (or state-issued ID) information. If you don’t have one, leave it blank.

7. Receive an e-mail from Customer Service at Free File Fillable Forms that acknowledges you have successfully submitted your information

Coming next week
o Automatic payments begin for most people
o Get My Payment, a second tool being developed by the IRS, will provide non-filers with the status of their payment, including the date their payment is scheduled to be deposited into their bank account or mailed to them.

IR–2020-68, April 9, 2020, IRS Urges Taxpayers to Use Electronic Options

The IRS reminds taxpayers and tax professionals to use electronic options to support social distancing and speed the processing of tax returns, refunds and payments. The news release also includes reminders about the services that are not currently available including:

• Processing paper returns

• Orders for forms or publications

• Taxpayer Assistance Centers

• Preparer Priority Service

• Phones lines supported by customer service representatives

Automated phone lines and some tax compliance tax lines will remain available. Mail processing functions will also remain open, but have been scaled back to comply with social distancing recommendations.

Link: https://www.irs.gov/newsroom/irs-urges-taxpayers-to-use-electronic-options-outlines-online-assistance

IR – 2020-67, April 9, 2020, IRS provides guidance under the CARES Act to taxpayers with net operating losses

Revenue Procedure 2020-24 outlines guidance to taxpayers with net operating losses that are carried back under the CARES Act by providing procedures for:

• waiving the carryback period in the case of a net operating loss arising in a taxable year

• disregarding certain amounts of foreign income subject to transition tax that would normally have been included as income during the five-year carryback period, and

• waiving a carryback period, reducing a carryback period, or revoking an election to waive a carryback period for certain years

Revenue Procedure 2020-23 outlines relief for partnerships with NOLs including:

• Allowing eligible partnerships to file amended partnership returns

Link: https://www.irs.gov/newsroom/irs-provides-guidance-under-the-cares-act-to-taxpayers-with-net-operating-losses

IR-2020-66, April 9, 2020, Additional Relief for Taxpayers Affected by Coronavirus

To help taxpayers, the Department of Treasury and the Internal Revenue Service announced the extension of key tax deadlines for individuals and businesses. The most recent guidance issued by the IRS extends a variety of tax filings and payment obligations to the July 15 deadline. This includes:

• The deadline for unclaimed refunds from 2016 tax returns

• Individuals, trusts, estates, corporations and other non-corporate tax filers

• Americans who live and work abroad

• Partnership return filings

• Individuals or corporations with estimated tax payments due between April 1 and July, 15.

Link: https://www.irs.gov/newsroom/irs-extends-more-tax-deadlines-to-cover-individuals-trusts-estates-corporations-and-others

IR-2020-64, April 2, 2020, IRS issues warning about Coronavirus-related scams

The IRS has issued a number of warning about calls and email phishing attempts related to COVID-19 and the Economic Impact Payments. These contacts can lead to tax-related fraud and identity theft.

Taxpayers should watch not only for emails but text messages, websites and social media attempts that request money or personal information.

It is important to keep in mind that:

• The IRS reminds retirees that no one from the agency will be reaching out to them by phone, email, mail or in person asking for any kind of information to complete their economic impact payment.

• In most cases, the IRS will deposit economic impact payments into the direct deposit account taxpayers previously provided on tax returns

• If the IRS does not have a taxpayer's direct deposit information, a check will be mailed to the address on file. 

The IRS reminds taxpayers that scammers may:

• Emphasize the words "Stimulus Check" or "Stimulus Payment."

• Ask the taxpayer to sign over their economic impact payment check.

• Ask by phone, email, text or social media for verification of personal and/or banking information

• Suggest that they can get a tax refund or economic impact payment faster by working on the taxpayer's behalf.

• Mail the taxpayer a bogus check then tell the taxpayer to call a number or verify information online in order to cash it.

IR-2020-62 (March 31, 2020): Employee Retention Credit

The Treasury and the Internal Revenue Service announced that the Employee Retention Credit is now available for businesses financially impacted by coronavirus and trying to keep employees on their payroll. The refundable tax credit is worth 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted.

Does my business qualify to receive the Employee Retention Credit?

The credit is available to all employers regardless of size, except for state and local governments and small businesses who already take small business loans. Questions include:

Qualifying employers must fall into one of two categories:

• The employer's business is fully or partially suspended by government order

• The employer's gross receipts are below 50% of the comparable quarter in 2019

How do I know which wages qualify?

Qualifying wages are based on the average number of a business's employees in 2019. For employers with less than 100 employees, the credit is based on wages paid to all employees, whether they worked or not. For employers with more than 100 employees then the credit is allowed only for wages paid to employees who did not work during the calendar quarter.

I am an eligible employer. How do I receive my credit?

Employers can be immediately reimbursed for the credit by reducing their required deposits of payroll taxes that have been withheld from employees' wages by the amount of the credit.

Link: https://www.irs.gov/newsroom/irs-employee-retention-credit-available-for-many-businesses-financially-impacted-by-covid-19

IR-2020-61 (March 30, 2020): The Treasury Department and the Internal Revenue Service announced that distribution of economic impact payments will begin in the next three weeks and will be distributed automatically, with no action required for most people.

However, some seniors and others who typically do not file returns will need to submit a simple tax return to receive the stimulus payment.

Response to the following frequently asked questions are also answered:  

• Who is eligible for the economic impact payment?

• How will the IRS know where to send my payment?

• The IRS does not have my direct deposit information. What can I do?

• I am not typically required to file a tax return. Can I still receive my payment?

• How can I file the tax return needed to receive my economic impact payment?

• I have not filed my tax return for 2018 or 2019. Can I still receive an economic impact payment?

• I need to file a tax return. How long are the economic impact payments available?

• Where can I get more information?

Link: https://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know

IR-2020-59 (March 25, 2020): Details the steps taken by the IRS to assist taxpayers by providing relief on a variety of issues ranging from easing payment guidelines to postponing compliance actions. Includes important information on the following topics:

• Existing Installment Agreements

• New Installment Agreements

• Offers in Compromise

• Non-Filers

• Field Collection Activities

• Private Debt Collection

• Field, Office and Correspondence Audits

• Earned Income Tax Credit and Wage Verification Reviews

• Independent Office of Appeals

• Statute of Limitations

• Practitioner Priority Services

*(See also Statement: IRS Operations During COVID-19)

Link: https://www.irs.gov/newsroom/irs-unveils-new-people-first-initiative-covid-19-effort-temporarily-adjusts-suspends-key-compliance-program

IR-2020-58 (March 21, 2020): Formal announcement of the Treasury and IRS’ decision to extend filing deadline and federal tax payments regardless of amount.

Important Note: A number of Members expressed concerns about IR 2020-58 and the ability of the President to defer interest without Congressional approval. The legal authority for the President and the Treasury to make this move is based on an emergency declaration pursuant to the Stafford Act.

Other important information includes:

• Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief

• Individual taxpayers who need additional time to file beyond the July 15 deadline, can request a filing extension by filing Form 4868

• 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

Link: https://www.irs.gov/newsroom/tax-day-now-july-15-treasury-irs-extend-filing-deadline-and-federal-tax-payments-regardless-of-amount-owed

IR-2020-57 (March 20, 2020): Treasury, IRS and Labor announce plan to implement Coronavirus-related paid leave for workers and tax credits for small and midsize businesses to recover the cost of providing Coronavirus-related leave. Key takeaways include clarification on the following aspects of (FFCRA):

• Paid Sick Leave for Workers

• Employers reimbursement for paid leave

• Small Business Protections

• Easing Compliance

• Background on FFCRA

Link: https://www.irs.gov/newsroom/treasury-irs-and-labor-announce-plan-to-implement-coronavirus-related-paid-leave-for-workers-and-tax-credits-for-small-and-midsize-businesses-to-swiftly-recover-the-cost-of-providing-coronavirus

IR-2020-54 (March 11, 2020): High-deductible health plans can cover coronavirus costs.

Notes that health plans that otherwise qualify as HDHPs will not lose that status merely because they cover the cost of testing for or treatment of COVID-19 before plan deductibles have been met.

Link: https://www.irs.gov/newsroom/irs-high-deductible-health-plans-can-cover-coronavirus-costs

IRS Operations During COVID-19: Mission-critical functions continue (March 27, 2020)

This statement is an overview of IRS operations and advice for taxpayers during this period. Each of the following sections contains important guidance on how to deal with the IRS and industry best practices. 

• Refund filers: File as soon you can
• Don't forget state tax returns; different deadlines may apply
• Families First Coronavirus Response Act and other COVID-19 legislation
• Non-filers: Haven't filed a tax return for a previous year? Take steps now.
• IRS mission-critical operations continue; no face-to-face assistance
• Other IRS operations

Link: https://www.irs.gov/newsroom/irs-operations-during-covid-19-mission-critical-functions-continue

Taxpayer Assistance Center Closure Statement (March 20, 2020)

In response to the national emergency, the IRS has temporarily closed all Taxpayer Assistance Centers and discontinued face-to-face service throughout the country until further notice. The IRS is continuing to process tax returns, issue refunds and help taxpayers to the greatest extent possible.

Link: https://www.irs.gov/newsroom/taxpayer-assistance-center-statement

Filing and Payment Deadline Extended to July 15, 2020 - Updated Statement (March 21, 2020)

Details how the Treasury Department and the Internal Revenue Service are providing special tax filing and payment relief to individuals and businesses in response to the COVID-19 Outbreak. Key information includes:

• Filing deadline extended to 15, 2020.

• State filing and payment deadlines vary and are not always the same as the federal filing deadline

Link: https://www.irs.gov/newsroom/payment-deadline-extended-to-july-15-2020