AICPA Calls for Tax Relief for Individuals and Businesses Amid Coronavirus Pandemic
The AICPA today called for the Treasury Department and the IRS to provide relief to all taxpayers in light of the uncertainty and challenges caused by the spread of the Coronavirus (COVID-19) pandemic.
Specifically, they request that Treasury and the IRS consider the following recommendations, which will provide extensive relief to millions of individuals and businesses:
Individuals
- Broad Relief: Extend certain deadlines falling on or after March 15, 2020 and before Oct. 15, 2020 to give individuals additional time to file and make payments through Oct. 15, 2020.
- Automatic Extension: Provide an automatic extension to Oct. 15, 2020, without the need to file any forms or request an extension.
- Penalties & Interest:
o Waive late payment penalties if at least 70 percent of an individual’s current tax due is paid by April 15, 2020.
o Waive interest through Oct. 15, 2020.
- Other Relief:
o Waive underpayment penalties for 2020 estimated tax payments if paid by Sept. 15, 2020.
o Extend the IRA contribution deadline.
Businesses
- Broad Relief: Extend certain deadlines falling on or after March 15, 2020 and before Oct. 15, 2020, to give businesses additional time to file and make payments through Oct. 15, 2020.
- Automatic Extension: Provide an automatic extension without the need to file any forms or request an extension.
- Penalties & Interest: Waive late payment penalties and interest through Oct. 15, 2020.
- Other Relief: Provide appropriate relief for all businesses and tax-exempt organizations regarding elections and filings (including payroll, excise tax, etc.).
“We are hearing from our members that they and their clients are experiencing great uncertainty about this year’s tax filing season. Our recommendations will help give taxpayers, large and small, much needed relief in the midst of this fast-moving emergency situation,” said Edward Karl, AICPA Vice President of Taxation. “We continue to closely monitor the Coronavirus pandemic and thank the Treasury Department and IRS for their commitment to the welfare of all taxpayers.”