10 Apr COVID-19 Update 8: IRS extends more deadlines, New NOL Benefits, New Loan Facility, Beware of Coronavirus Scams
Posted at 18:37h in Insights
IRS Extends More Tax Deadlines
Covering individuals, trusts, estates, corporations and others
Notice 2020-23 expands this relief to additional returns, tax payments and other actions. As a result, the extensions generally now apply to all taxpayers that have a filing or payment deadline falling on or after April 1, 2020, and before July 15, 2020. Individuals, trusts, estates, corporations and other non-corporate tax filers qualify for the extra time. This means that anyone, including Americans who live and work abroad, can now wait until July 15 to file their 2019 federal income tax return and pay any tax due.
Top 4 Benefits of Net Operating Loss Changes
Some highlights from the CARES Act Overview include:
- NOLs generated in 2018-2020 can be carried back five years.
- Losses carried back will offset income taxed at generally higher rates.
- The 80% of taxable income limitation is removed temporarily for pre-2021 tax years.
- Real estate professionals are no longer limited in how much rental loss they can offset against portfolio income for pre-2021 tax years.
Taxpayers with large 39- or 27.5-year property acquisitions and/or additions in 2018-2020 have refund opportunities by performing a cost segregation study and carrying back the resulting losses to the previous 5 years.
The correction of the “Retail Glitch” in the CARES Act assigns a 15-year life and allows Bonus Depreciation for some property that previously had a 39-year life. This is just one of the many ways a cost segregation study can deliver significant additional deductions.
Please contact us if you have any questions or would like to discuss opportunities.
Federal Reserve Rolls Out Main Street New Loan Facility
The Federal Reserve today announced that, as part of a $2.3 trillion loan program, it was rolling out its much-anticipated Main Street New Loan Facility. This emergency loan program provides up to $600 billion in financing to lenders that make direct, unsecured loans to Main Street businesses impacted by COVID-19. The new loan facility is intended to support medium-sized businesses that have not yet been helped by the $2 trillion economic stimulus package signed into law late last month.
IRS Issues Warning About Coronavirus Related Scams
The IRS warned taxpayers to watch out for emails, text messages, websites, and social media attempts related to the coronavirus that request money or personal information. Taxpayers should not click on links from emails that appear to come from the IRS. The IRS and its Criminal Investigation Division have seen a wave of new and evolving phishing schemes against taxpayers. In most cases, the IRS will deposit economic impact payments into the direct deposit account taxpayers previously provided on tax returns.
Taxpayers who have previously filed but not provided direct deposit information to the IRS will be able to provide their banking information through a newly designed secure portal on www.irs.gov in mid-April. If the IRS does not have a taxpayer’s direct deposit information, a check will be mailed to the address on file. No one from the IRS will be reaching out to taxpayers by phone, email, mail, or in person asking for information to complete economic impact payments. News Release IR 2020-64.