General & Federal Updates: COVID-19
May 18, 2020
Most Recent Updates:
- For guidance on PPP loans (last updated 5/18), please click here.
- For state-specific updates (last updated 5/8), please click here.
- For IRS filing FAQs (last updated 3/25), click here.
- For the Employee Retention Credit and Employer Social Security Tax Deferral provisions of the CARES Act (last updated 4/10), click here.
Oregon Governor Kate Brown issued Executive Order 20-12 this morning, mandating that Oregonians stay home as much as possible, when at all possible. This order is an escalation of the previously-decreed “social distancing” recommendation, which many Oregonians disregarded during the favorable weather over the weekend. “Non-essential” social gatherings have been prohibited, and many businesses (including amusement parks, art galleries, hair salons, gyms & studios, museums, and ski resorts) have been ordered to close until further notice. Businesses that are allowed to remain open must mandate a work-from-home policy where at all possible. Click here for more information.
Earlier today, the U.S. Small Business Administration (SBA) announced that it would offer disaster-relief loans across the state, in an effort to curb financial damage done by the COVID-19 outbreak. The SBA’s website has been immediately flooded with applications. Once businesses appy for a loan, it could take as long as one month to start receiving funds. Businesses can apply for loans of up to $2 million, with interest rates of 3.75% for small businesses and 2.75% for nonprofits.
U.S. Treasury Secretary Steven Mnuchin announced this morning that the IRS has extended the tax filing deadline to July 15 due to the COVID-19 outbreak. The extension applies to all taxpayers and corporations. More info here.
Yesterday, the U.S. Treasury Department confirmed that certain individuals and corporations will indeed be granted a 90-day tax payment extension. Individuals may defer up to $1 million and corporations may defer up to $10 million of tax payments that would ordinarily be due on April 15. Official guidance from the IRS can be found here.
U.S. Treasury Secretary Steven Mnuchin announced this morning in a White House press briefing that while the tax filing deadline will remain April 15, the federal tax payment deadline has been extended for 90 days. Individuals who owe up to $1 million and corporations that owe up to $10 million will be granted the 90-day extension without penalty or interest. Many states have issued tax extensions as well.
Given the developments in the COVID-19 outbreak, it seems increasingy likely that the U.S. Treasury Department and the IRS will indeed issue an extension on the April 15 deadline later this week. We are told that the extension may be by as much as 90 days and would (for most taxpayers) include a waiver of penalties and interest.
At this time we have not been given specifics to the potential extension, including for whom it would apply.
We will continue to update this page as soon as we learn more.
Amid uncertainty around the coronavirus outbreak, U.S. Treasury Secretary Steven Mnuchin is recommending to President Trump that the IRS postpone the tax payment deadline beyond April 15, according to the New York Times. Two important points for our clients:
- It does not appear that the sweeping extension, if approved, would change the filing deadline, but rather the date by which taxpayers must pay their taxes
- The proposed payment extension language used by Mnuchin excludes large corporations and high-net-worth individuals (there was no income/asset threshold given)
At this time, the proposed payment extension has not been confirmed, but we are monitoring the situation closely and will be sure to provide updates as they arise.