The AICPA urges IRS to provide payment relief due to COVID-19
The AICPA on Thursday urged Treasury and the IRS to provide broader tax filing and payment relief for taxpayers affected by the ongoing COVID-19 pandemic. In a letter to Treasury Assistant Secretary for Tax Policy David J. Kautter and IRS Commissioner Charles Rettig from Christopher Hesse, CPA, chair of the AICPA Tax Executive Committee, the AICPA requested that all federal income tax returns, information returns, and payments (including installments and estimated payments) originally due between March 3, 2020, and July 15, 2020, be granted additional time to file and pay until July 15, 2020. While noting that Notice 2020-18 and FAQs posted on the IRS website “were both helpful and appreciated,” the AICPA requested further guidance and clarification regarding Notice 2020-18. “
Payment relief links:
Filing Issues Noted by AICPA:
1) U.S. citizens living abroad and non-resident alien filers are potentially affected by the April 15 due date and payment requirement. Assure these taxpayers are eligible for relief to file by July 15.
2) Provide relief from manual signature requirements. For electronic transactions, IRS guidance requires a manual signature on Form 8868, IRS e-file Signature Authorization for Form 4868 or Form 2350, Form 8878-A, IRS e-file Electronic Funds Withdrawal Authorization for Form 7004, and Form 8879, IRS e-file Signature Authorization.
3) Clarify whether Form 990, Return of Organization Exempt From Income Tax, and Form 990-PF, Return of Private Foundation, with April 15 due dates are extended under Notice 2020-18. Forms 990 and 990-PF are referred to as “information returns” by the IRS and the tax due with Form 990-PF on net investment income is defined as an “excise tax.” If these returns are not included under Notice 2020-18, please provide filing and payment relief.
Provide and Confirm:
4) Provide filing relief to gift and estate tax returns that normally require paper submission and manual signatures. If an individual return is automatically delayed to July 15, the related gift tax return should similarly receive an automatic extension without having to file a Form 8892, Application for Automatic Extension of Time To File Form 709 and/or Payment of Gift/Generation-Skipping Transfer Tax.
5) Provide relief from the normal statute of limitations during the pandemic and the 90-day period for a Notice of Deficiency if a locality has a shelter-in-place order.
6) Confirm that returns that are normally extended and filed with Form 1040, U.S. Individual Income Tax Return, Form 1120, U.S. Corporation Income Tax Return, and Form 1041, U.S. Income Tax Return for Estates and Trusts, are also automatically extended to July 15. (For example, these forms include Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts (paper filed separately); Form 5471, Information Return of U.S. Persons With Respect To Certain Foreign Corporations; Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business, Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund, Form 8858; Information Return of U.S. Persons With Respect to Foreign Disregarded Entities (FDEs) and Foreign Branches (FBs); Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships; and Form 8938, Statement of Specified Foreign Financial Assets.)
7) Provide guidance and filing relief for non-resident alien taxpayers who cannot leave the U.S. and will trigger the substantial presence test due to the impacts of COVID-19. Tax Payments
8) Confirm that an extension overpayment made on July 15 counts as if were made for Q1 (i.e., April 15). Please confirm that this payment counts towards any required Q2 estimated tax payments.
9) Provide relief for S corporations that must make estimated payments on April 15 (e.g., the section 1374 tax imposed on certain built-in gains). Employee Benefits 10) Provide payment relief to employers currently assessed penalties under the Affordable Care Act as part of the Employer Mandate under sections 4980H(a) and 4980H(b), including failure to file Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, and Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, timely with the IRS and provide statements to participants under sections 6721 and 6722.”
Conclusion:
We hope you found this article about The AICPA urges IRS to provide payment relief due to COVID-19 helpful. If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or our website at www.GROCO.com. Unfortunately, we no longer give advice to other tax professionals gratis.
To receive our free newsletter, contact us here.
Subscribe to our YouTube Channel for more updates.
Considerately yours,
GROCO, GROCO Tax, GROCO Technology, GROCO Advisory Services, GROCO Consulting Services, GROCO Relationship Services, GROCO Consulting/Advisory Services, GROCO Family Office Wealth, and GROCO Family Office Services.
Alan L. Olsen, CPA, Wikipedia Bio
GROCO is a proud sponsor of the American Dreams Show.
Seven Signs Your Noncompliance Will Be Considered Willful
Seven Signs Your Noncompliance Will Be Considered Willful There are many ways taxpayers can get the attention of the IRS. Although a lot of people make innocent mistakes when they file their tax returns, there are others who willfully look for ways to skip out on the taxes they owe. The IRS does treat those…
Make Sure Your Heirs Inherit What You Want
Make Sure Your Heirs Inherit What You Want. The saying goes that their only two things that are certain in life: death and taxes. While people can generate endless amounts of money when they’re alive, they can’t live forever and they can’t take that wealth with them when they die. However, they can have a…
Will Taxing the Rich Even More Improve Inequality?
Will Taxing the Rich Even More Improve Inequality? It’s been the cry of democratic lawmakers and many of the less fortunate for years: “We need to tax the wealthy even more.” “The rich have to pay their fair share of taxes, too.” The problem is the rich already pay a huge portion of the country’s…
It Pays to Be Rich for These Five Tax Breaks
It Pays to Be Rich for These Five Tax Breaks Although it’s true that the ultra-wealthy are heavily taxed, and in many cases unfairly, there are also some tax break advantages that favor the upper class more than those in the middle. Let’s take a look at some of these breaks. Most common and first…