STAFFORD ACT TAX RELIEF

♠ Posted by Marc J. Soss in Expense reimbursement,President Trump,qualified disaster mitigation,reimbursement amount,Stafford Act

On February 13, 2020, President Trump invoked the Stafford Act, and opened the door to a range of possibilities in structuring “qualified disaster mitigation” payments to employees under IRC Section 139. These payments are advantageous to both employers and employees and not subject to income taxes or payroll taxes. Yet, an employer is still allowed to claim them as a deduction. Expense reimbursement that can be considered “reasonable and necessary” as a result of the “qualified disaster” cannot simply be income replacement, such as sick, vacation, etc. The expenses you are reimbursing need...

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IRS Notice 2020-18 Extends Tax Filing Deadline in 2020

♠ Posted by Marc J. Soss in 2019 Federal Income Tax Return extension,2020 IRS Tax Relief,Corona Virus Tax Relief,Extend Tax Deadline,IRS tax debt

IRS Notice 2020-18 has postponed this year's tax filing deadline to July 15, 2020. It is important to note that it extends only income tax and self-employment filings and payments and does not extend the time to file or pay employment taxes, estate taxes, gift taxes, excise taxes, information returns or any other federal tax or user fee filings. Taxpayers have until July 15, 2020, to pay income taxes without incurring penalties or interest, with no limit as to the amount of tax that may be deferred (previous IRS guidance, Notice 2020-17 limited the amount of tax that could be deferred). These...

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