IRS Can’t Give Turnaround Estimate for Quick Refund Procedures - Andrew Velarde, Tax Notes ($):
“It’s really premature to have any estimate on timelines,” Nikole Flax, deputy commissioner, IRS Large Business and International Division, said. “We know that there will be a significant amount of filings that come in through the fax line. [We’re] mindful that these forms are typically processed in 90 days and that taxpayers are obviously anxious to get their refunds, [and we’re] just trying to balance all that.”
These are Forms 1045 and 1139, which enable individuals to make streamlined filings to carry back losses for 2018 and 2019 against income going back five years. The forms to carry back 2018 losses need to be faxed (yes, faxed) to the IRS by June 30.
Related: IRS simplifies CARES Act net operating loss refund claims
Joint Committee on Taxation releases explanation of CARES Act Tax Provisions. Nothing earth-shaking, but a good summary, including this: "For Federal tax purposes, any amount which (but for the provision) would be includible in gross income of the recipient of a covered loan by reason of forgiveness pursuant to the provision is excluded from gross income."
PDF download available here.
Telework Could Trigger Withholding Changes in Some States - Lauren Loricchio, Tax Notes:
Meanwhile, an FAQ posted on the Minnesota Department of Revenue's website explains that teleworking could create new nexus responsibilities for employers.
One of the questions is whether the state will impose added individual income tax or payroll withholding tax requirements for employees who usually work outside the state but are temporarily telecommuting from Minnesota. The response is, “No. For Minnesota residents, there are no additional payment or withholding requirements. They are already taxed on income earned inside and outside the state.”
However, for nonresidents “the apportionment of their income may change based on the number of days they physically work in Minnesota,” according to the FAQ.
Link to FAQ here.
COVID-19 law expands FSA OTC options & ends Rx rule - Kay Bell, Don't Mess With Taxes. "Specifically, the COVID-19 law eliminates the Rx requirement, letting us again use spending account funds to pay for more of our OTC meds. This essentially takes us back to the OTC FSA etc. rules that were in place before Affordable Care Act (ACA) limited them."
CARES Act Overseers Battle Erroneous Pay Confusion, Hurdles - William Hoffman, Tax Notes. "If you got an extra $500 in stimulus money for a child who just turned 17, you won’t have to pay it back, the IRS said April 22."
IRS Extends Response Date Ahead of Potential Microcaptive Exams - Emily Foster, Tax Notes. "The IRS has automatically extended the due date to June 4, but if taxpayers need more time they should call the hotline number noted in the letter. The IRS said it 'will continue to monitor the situation, including the impact of current operations.'"
Your Stimulus Check Answers About Kids, Child Support, Direct Deposit, ITINs & More (Updated) - Kelly Phillips Erb, Forbes.
Keeping it Simple: Approaching the Next Stage of Coronavirus Tax Policy - Taylor LaJoie, Tax Policy Blog.
Making an Entity Election When the IRS is Closed - Kelley Miller, Procedurally Taxing. "CAN A FORM 8832 BE FAX-FILED DUE TO COVID-19? No, not at this time."
What Should We Call Those COVID-19 Recovery Rebates? - Janet Holtzblatt, TaxVox. "According to the Coronavirus Aid, Relief, and Economic Stimulus (CARES) Act, the payments are 'recovery rebates.'"
Dividend Tax Rates in Europe - Elke Asen, Tax Policy Blog. "Ireland has the highest dividend tax rate among European OECD countries, at 51 percent. Denmark and the United Kingdom follow, at 42 percent and 38.1 percent, respectively."
This Day in History. In one of the great marketing masterstrokes of the twentieth century, "New Coke" was introduced on this date in 1985. "It remains influential as a cautionary tale against tampering with a well-established and successful brand" (Wikipedia)
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