Page 9 - NCISS Your Advocate April 2020

IRS Notices on Tax Filing and Payments Deferral
www.irs.gov/pub/irs-drop/n-20-17.pdf
On 03/18/2020 the IRS issued Notice 2020-17 regarding deferral of tax payments ordinarily be due on April 15. The
payment deferral provisions are part of the efforts to alleviate the impact of the coronavirus pandemic on the U.S.
economy.

In accordance with this guidance, any taxpayer with a federal income tax return payment due on April 15, 2020, can
postpone that payment until July 15, 2020. The deferral provisions apply to both 2019 federal income tax payments and
2020 federal estimated income tax payments that are due on April 15, 2020. These deferred payments will not be
subject to interest or penalties. This does not delay the original April 15 due date for filing federal income tax returns.
However, both individual and corporate taxpayers that submit a valid automatic extension of time to file their 2019
federal income tax returns will be eligible for the payment deferral.

On 03/19/2020 Treasury Secretary Steve Mnuchin announced the IRS is moving the tax filing deadline from April 15 to
July 15.
This coincides with the extension for payments without interest or penalty.

Families First Coronavirus Response Act
On 03/18/2020 the federal government passed this new paid leave law for small businesses to help families during this
crisis. This act will go into effect by 04/02/2020 through 12/31/2020. Employers must post information about this new
act. The law can be viewed here: www.congress.gov/bill/116th-congress/house-bill/6201/text

For investigators and security, most of whom are self-employed, there is a refundable tax credit equal to 100 percent of
a qualified family leave equivalent amount. This treats self-employed individuals as employees and makes them entitled
to receive paid leave pursuant to the Emergency Family and Medical Leave Expansion Act. The qualified family leave
equivalent amount is capped at the lesser $200 per day or or the average daily self-employment income for the taxable
year per day. In calculating the qualified family leave equivalent amount, an eligible self-employed individual may only
take into account those days that the individual is unable to work for reasons that would entitle the individual to receive
paid leave pursuant to the Emergency Family and Medical Leave Expansion Act.

This act offers paid sick leave options for employees who must take time off of work due to this crisis, including childcare
due to school closures. Any paid time off provided to employees due to this crisis can be converted into a payroll tax
credit under this law. The law provides $1 billion in grants for unemployment insurance benefit-related activities,
requires health insurance plans to cover testing, and provides reimbursement for uninsured Americans.

$500 million to the Special Supplemental Nutrition Program for Women Infants and Children (WIC) for low-income
pregnant women or mothers with young children who lose their jobs or are laid off due to the crisis. Also, $400 million
for the Emergency Food Assistance Program (TEFAP) food and food storage for local food banks. In addition, $250
million for the Senior Nutrition Program to provide additional home-delivered and pre-packaged meals to low-income
seniors who depend on the Senior Nutrition programs in their communities.

This temporarily provides for paid sick time, protected paid family leave, and insurance coverage for private employers
with fewer than 500 employees and provides private businesses with payroll tax credits to offset the additional
expenses incurred. It is complicated legislation with extensive guidance from the U.S. Department of Labor, but the
Employers Council breaks it down into plain language on the requirements to get employers more familiar with the
requirements.
US Department of Labor - www.dol.gov/newsroom/releases/whd/whd20200324
Employers Council - https://blog.employerscouncil.org/2020/03/19/families-first-act-signed-into-law

Check your state, county and local resources for businesses and job seekers.