AICPA Tax Insider (Apr. 2, 2020): COVID 19 Updates and AICPA Tax Document Summaries

CARES Act tax provisions aim to stabilize pandemic-ravaged economy

The $2 trillion stimulus bill, which became law on March 27, contains many tax provisions. Here’s a look at them, which range from credits to temporary changes to retirement plan rules.

Practitioner Priority Service, other IRS help lines suspended due to coronavirus

The IRS announced that, because of staff shortages, it was closing the Practitioner Priority Service, a special phone line for tax practitioners, as well as the e-Services Help Desk line and the e-Services, FIRE, and AIR system help desks “until further notice.”

Coronavirus paid sick leave and family leave guidance issued

The IRS issued rules to implement paid sick and child care leave credits enacted in response to the pandemic.

Gift and GST returns added to postponed tax and filing deadlines

The IRS postponed the payment and return filing requirements for gift and generation-skipping transfer taxes due April 15 to July 15, matching prior postponements granted to federal income taxes and returns

Relieving the April 15 ‘pressure point’ (podcast)

From Paul Bonner

In this episode, Ed Karl, CPA, the AICPA’s vice president-Tax Policy & Advocacy, outlines how the tax filing delay came about — and what it means for CPA tax practitioners and their clients.

AICPA Document Summaries for week of March 30, 2020

CORPORATIONS

Prop. regs. issued on life insurance reserves

The IRS issued proposed regulations on the computation and reporting of reserves for life insurance companies. REG-132529-17 (4/1/20).

ESTATES, TRUSTS & GIFTS

Fifth Circuit affirms Tax Court estate valuation decision

The Fifth Circuit affirmed a Tax Court decision that a decedent’s estate was not entitled to a lack-of-control discount for purposes of valuing a limited partnership interest held in the decedent’s revocable trust. Estate of Frank D. Streightoff, No. 19-60244 (5th Cir. 3/31/20).

IRS PROCEDURE

Public proposed regs. hearings to be held by telephone

The IRS announced that public hearings on proposed regulations will be held by telephone until further notice. Individuals who want to testify by telephone at a public hearing must send an email to publichearings@irs.gov to receive the telephone number and access code for the hearing. Announcement 2020-4 (4/1/20).

IRS provides coronavirus-related relief from employment taxes penalties

The IRS issued a notice providing a waiver of (1) additions to tax for failure to make a deposit of taxes for employers required to pay qualified sick leave wages and qualified family leave wages mandated by the Families First Coronavirus Response Act (Families First Act) and qualified health plan expenses allocable to these wages, and (2) additions to tax for failure to make a deposit of taxes for certain employers subject to a full or partial closure order due to the coronavirus disease 2019 (COVID-19) or experiencing a statutorily specified decline in business under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136. The notice applies (1) to deposits of employment taxes (including withheld income taxes, Federal Insurance Contributions Act taxes, and Railroad Retirement Tax Act taxes) reduced in anticipation of the credits with respect to qualified sick leave wages and qualified family leave wages paid with respect to the period beginning April 1, 2020, and ending Dec. 31, 2020, and (2) with respect to deposits of employment taxes reduced in anticipation of the credits with respect to qualified wages paid for the period beginning on March 13, 2020, and ending Dec. 31, 2020. Notice 2020-22 (3/31/20) (see related news story).

Form issued for advance employer tax credits

The IRS issued a new form and instructions for employers to use to obtain advance payments of three tax credits that were created to help businesses cope with the coronavirus pandemic. Form 7200 and instructions (3/31/20) (see related news story).

IRS provides guidance on economic impact payments

The IRS issued informal guidance on how it will pay recovery rebates or economic impact payments mandated by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136, and how taxpayers who have not filed a return can become eligible for a payment. IR-2020-61 (3/30/20) (see related news story).

IRS acquiesces in result only to Feigh decision

The IRS announced its acquiescence in result only to the Tax Court’s decision in Feigh, 152 T.C. No. 15 (2019). The IRS said it acquiesces only to the court’s holdings that (1) Medicaid waiver payments received as wages for the care of the taxpayers’ disabled adult children in their own home are not excludable from income under Sec. 131; and (2) if such payments are treated as excludable from gross income pursuant to Notice 2014-7, the payments nevertheless may be earned income for determining a taxpayer’s eligibility to receive the Sec. 32 earned income credit and the Sec. 24 additional child tax credit. AOD 2020-2 (3/30/30).

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal..

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s