U.S. Congress acts to help businesses and individuals
As the spread of the Coronavirus COVID-19 starts to have a greater impact on the economy, U.S. Congress is taking some initial action to help businesses and individuals. The U.S. House of Representatives has passed bi-partisan legislation to address paid sick and family leave, including tax credits for employers and self-employed persons. Follow-up action by the Senate and President is expected shortly. The Internal Revenue Service (IRS) also announced a 90-day waiver of interest and penalties for late tax filings by certain taxpayers. The recently released “Coronavirus Tax Relief” briefing from Wolters Kluwer Tax & Accounting highlights these actions.
What’s in the legislation
The legislation includes the following provisions:
- Until December 31, 2020, certain employers are required to pay sick leave to specified employees with compensating 100 percent tax credit
- Requirement that family leave wages be paid to certain employees with a temporary 100 percent tax credit
- Similar tax credits for self-employed persons
- Funding for increased Coronavirus testing
- Increased Medicaid funding
- Expanded unemployment benefits
- Funding for school lunch programs while schools are closed
- Secretary of the Treasury will announce the date when the provisions become effective, which must fall within 15 days of enactment
Guidance and analysis available
Tax expert Mark Luscombe, JD, LL.M, CPA, Principal Analyst at Wolters Kluwer Tax & Accounting, can discuss the legislative actions taken in response to the Coronavirus COVID-19.
Please contact Wolters Kluwer Tax & Accounting to arrange interviews with Mark Luscombe or other federal and state tax experts on this or any other tax-related topic.
To read the full press release, click here.
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