Hey, it looks like we get new tax law today. As this is written, Congressional staffers are pulling an all-nighter to wrap up a $2 trillion Coronavirus bill full of big and retroactive tax changes. Watch Tax News and Views Blog (ebtaxblog.com) today for updates.
Some of these changes are expected to be retroactive, including a relaxation of the deduction for business interest. So you know that return you just filed? Yeah, you may get to do it again.
If you filed a partnership return, claiming that tax benefit may be tricky, reports Tax Notes' Eric Yauch in Partnership Audit Regime Could Pose Problem in Coronavirus Relief ($):
Among the other vast changes to the partnership landscape under the law is that partnerships subject to the audit regime aren’t able to simply file amended returns; instead, they must file administrative adjustment requests (AARs). That change has already been problematic, especially for partnerships looking to obtain one-year, automatic late election relief under section 9100.
Maybe the sleepy taxwriters will read Tax Notes and add a fix for this.
IRS FAQ Offers ‘Much-Needed’ Clarity on Filing Season Changes - Jonathan Curry, Tax Notes ($)
More states extend filing deadlines. State Tax Notes reports that Alabama, Arizona, Delaware, Hawaii, Idaho, Kansas, Louisiana, Minnesota, Mississippi, South Carolina and Wisconsin have extended 2019 return filing deadlines. Iowa has announced that some businesses can defer unemployment tax payments otherwise due on April 30. Those payments will now be due July 31, 2020.
FAQs on IRS Extending Tax Filing and Payment Deadline - Amie Kuntz, Tax News & Views.
10 Things I Like About You: How The Senate & House Stimulus Bills Are Similar - Kelly Phillips Erb, Forbes. "Both the House and Senate bills would push off the federal income tax deadline for individual 2019 tax returns to July 15, 2020 - but that is moot since the filing deadline was officially extended on March 20, 2020. They would also extend the due date for estimated payments for 2020 to October 15, 2020."
IRS May Take More Generous Approach on Paid Leave - Stephanie Cumings, Tax Notes ($). "Upcoming guidance on the paid leave provisions and payroll tax credits created in response to the coronavirus pandemic could be broader than the statute."
Review and Analysis of House Democrats Coronavirus Response Bill - Garrett Watson, Huaqun Li, and Taylor LaJoie, Tax Policy Blog.
COVID-19 forces closure of many IRS, other tax operations - Kay Bell, Don't Mess With Taxes. "Your taxes don't matter one whit if you or someone you love is sick."
Tax Change Ideas to Address Coronavirus Costs - Annette Nellen, 21st Century Taxation.
District Court Muddles an FBAR Willful Penalty Case - Jack Townsend, Federal Tax Crimes. "More importantly, I think the Government had the better part of the argument."
Queen Elizabeth, King Zog, and You. A little meditation on succession planning I wrote for businessinsightsdsm.com. While writing it I learned that the onetime king of Albania had a ten-pack-a-day cigarette habit. Don't try that at home, kids.