COVID-19: ADDITIONAL IRS GUIDANCE

ADDITIONAL IRS GUIDANCE RELATING TO THE COVID-19 PANDEMIC


IRS Coronavirus Tax Relief Page

Notice 2020-58 - on July 30, 2020, The IRS released guidance that providedes additional relief to taxpayers satisfying the substantial Rehabilitation credit. The notice allows taxpayers that have a measuring period under the substantial rehabilitation test ending on or after April 1, 2020, and before March 31, 2021, now have until March 31, 2021 to satisfy the test.

Notice 2020-50 - on June 19, 2020, The IRS released guidance to help retirement plan participants affected by the COVID-19 coronavirus take advantage of the CARES Act provisions providing enhanced access to plan distributions and plan loans. 

Notice 2020-49 -on June 12, 2020 the IRS postponed to December 31, 2020, the due dates for making investments, making reinvestments, and expending amounts for construction of real property under § 45D of the Internal Revenue Code due to be performed or expended on or after April 1, 2020, and before December 31, 2020

Notice 2020-46 - on June 11, 2020 the IRS provided guidance regarding  cash payments employers make to charitable organizations that provide relief to victims of the COVID-19 pandemic in exchange for sick, vacation or personal leave. 

Notice 2020-39 - on June 4, 2020 the IRS provided relief for Qualified Opportunity Funds (QOFs) and their investors in response to COVID-19. None of the relief provisions under Notice 2020-39 require QOFs or their investors to certify they have been adversely impacted by the virus.  In addition, the relief provisions do not require any filing or formal extension request and will automatically apply to those affected.

Notice 2020-29 and Notice 2020-33 – on May 12, 2020 the IRS increased flexibility with respect to mid-year elections under a §125 cafeteria plan during calendar year 2020 related to employer sponsored health coverage, health Flexible Spending Arrangements (health FSAs), and dependent care assistance programs and provided modification an clarification of permissive carryover rules for health FSAs and reimbursement of premiums by individual coverage health reimbursement arrangements.

Revenue Procedure 2020-30- on May 7, 2020, the IRS issued guidance providing individuals may temporarily conduct activities in a country other than the United States or in a territory of the United States that would not otherwise have been conducted there as a result of travel restrictions and disruptions resulting from COVID-19 pandemic, without being deemed as having a foreign branch separate unit for purposes of the dual consolidated loss rules or create an obligation to file Form 8858.

IR-2020-87- on May 5, 2020, the IRS announced it will retool Settlement Days program in response to COVID-19 pandemic, allowing unrepresented taxpayers to settle their cases virtually and reach finality.

Revenue Procedure 2020-29 - on April 30, 2020, the IRS issued guidance that will temporarily allow electronic submission of requests for letter rulings, closing agreements, determination letters, and information letters under the jurisdiction of the IRS Office of Chief Counsel, and for determination letters issued by the IRS Large Business and International Division.

Revenue Procedure 2020-27- on April 22, 2020, the IRS issued guidance  providing that qualification for exclusions from gross income under IRC section 911 will not be impacted as a result of days spent away from a foreign country due to the COVID-19 emergency based on certain departure dates.

Revenue Procedure 2020-20- on April 21, 2020, the IRS issued guidance providing that, under certain circumstances, up to 60 consecutive calendar days of U.S. presence that are presumed to arise from travel disruptions caused by the COVID-19 emergency will not be counted for purposes of determining U.S. tax residency and for purposes of determining whether an individual qualifies for tax treaty benefits for income from personal services performed in the United States.

IR-2020-77- on April 21, 2020, the IRS announced cross-border tax guidance related to travel disruptions arising from the COVID-19 emergency, including a link to FAQs on the same subject.

IR-2020-68 - On April 9, 2020 the IRS released guidance urging taxpayers to use electronic options for communicating with the IRS and outlined on-line assistance available.

IR-2020-59 - On March 25, 2020 the IRS unveiled its new People First Initiative.  This initiative temporarily adjusts or suspends key compliance programs in reaction to the COVID-19 pandemic.

IR-2020-55 - on March 12, 2020, the IRS announced waivers for Offer in Compromise applications.

Notice 2020-15 -  On March 11, 2020 the IRS advised that high-deductible health plans (HDHPs) can pay for 2019 Novel Coronavirus (COVID-19)-related testing and treatment, without jeopardizing their status. This also means that an individual with an HDHP that covers these costs may continue to contribute to a health savings account (HSA).


TAX WARRIOR BLOG AND ALERTS

July 22, 2020 - IRS Expands Definition of Coronavirus-related Distributions

June 29, 2020 - IRS Grants Extensive Relief to 2020 RMD Recipients

June 11, 2020 - International-focused Webinar "Impact of COVID-19 on Immigration and Taxation in the U.S." 

June 9, 2020 - IRS Grants Broad COVID-19 Relief to Qualified Opportunity Funds and Their Investors

May 13, 2020 - IRS Allows Mid-year Changes to Health & Dependent Care Plan Elections

March 18, 2020 - IRS Unveils People First Initiative


THIRD PARTY RESOURCES

March 19, 2020 - IRS to Reduce Staff by 50% at Return Processing Centers Amid Virus  (Bloomberg Tax)