On Friday, President Trump declared a national emergency, using powers that rest in the executive branch.
Earlier Tuesday afternoon, Treasury Secretary Steven Mnuchin announced the administration is “giving individuals and many business 90 extra days. Individuals can defer up to $1 million. All you have to do is file your taxes. You’ll automatically not get charged interest and penalties.
On Saturday, the House passed a bill (Families Coronavirus Response Act). If the bill, which requires renegotiation for technical issues, becomes law, it would grant significant sick/family leave coverage to those at small or mid-sized businesses.
A Washington Post article clarifies a taxpayer would not need to have the coronavirus to take advantage of the leave. The paid sick leave applies to anyone told to quarantine or attempting to get a test or preventative care. The IRS “will probably have to come up with an exact rule, but its clear Congress wants to avoid a situation in which everyone is trying to get a doctor’s note to qualify.”
While Congress still needs to pass this relief package, legislators are already discussing a third one. Some of the tax items under consideration are:
- Payroll tax moratorium or suspension
- One-time $1000 payment to all adults
- A return of NOL carrybacks
- Additional payroll relief for independent contractors and taxpayers in the gig economy