Details Emerge on Phase III of Federal Government’s Response to Coronavirus + Local, State and Federal Tax Updates Related to Coronavirus
Mar 20, 2020
Details Emerge on Phase III of Federal Government’s Response to CoronavirusOn March 18, we shared an update on how the federal government is responding to the coronavirus pandemic for businesses and the economy, in three phases. New details have emerged for Phase III of the federal government’s response to the coronavirus outbreak. The Trump administration's request for business includes $300 billion in small business loans, $50 billion for the airline industry and $150 billion for other "severely distressed" industries. The small business loans would apply to employers with 500 or fewer employees, and cover 100% of six weeks of payroll. Businesses must compensate all employees for eight weeks from the time the loan is disbursed in order to qualify. Senate Majority Leader Mitch McConnell (R-KY) said some of the small business loans would be forgiven if used to retain workers or cover basic operational expenses. Details continue to be developed. Review the Treasury Department’s memo on the proposal. Click here to review the Treasury Department’s memo on the proposal.
Local, State and Federal Tax Filing and Payment Deadlines Delayed Due to Coronavirus
Iowa suspends penalties and interest as it relates to the collection of property taxes and relaxes or extends deadlines on regulations due to coronavirus, in a state public health emergency declaration from Governor Reynolds. The changes will expire on April 16 at 11:59 p.m., according to a press release from the governor's office.
The Internal Revenue Service (IRS) announced today that the administration has moved the IRS deadline for filing taxes from April 15 to July 15 due to the disruption caused by the coronavirus. That’s a change from a few days ago when the filing deadline remained April 15. Most individuals and businesses will be allowed to delay paying their federal tax bills for 90 days as part of an emergency relief plan amid the coronavirus pandemic. Without penalty, individuals, including pass-through businesses, who owe less than $1 million will be able to delay paying. Corporations will be able to defer payment on taxes due up to $10 million. Individuals and businesses must make payments due to the federal treasury by July 15, 2020. If you are expecting a refund, continue to file as usual. As of now, the IRS is still processing returns and sending out refunds.
The Iowa Department of Revenue today extended the filing and payment deadline for several state tax types, including income tax. The order, prompted by coronavirus and signed by Director of Revenue Kraig Paulsen, extends filing and payment deadlines for income, franchise, and moneys and credits taxes with a due date on or after March 19, 2020, and before July 31, 2020, to a new deadline of July 31, 2020. Click here for more information.