The American Institute of Certified Public Accountants (AICPA) asked the Treasury Department and the Internal Revenue Service on Wednesday to consider providing extensive relief to both individual and business taxpayers because of the spread of the coronavirus.
“We are hearing from our members that they and their clients are experiencing great uncertainty about this year’s tax filing season. Our recommendations will help give taxpayers, large and small, much needed relief in the midst of this fast-moving emergency situation,” said Edward Karl, AICPA VP of taxation, who thanked Treasury and the IRS for their commitment to the welfare of all taxpayers.
For individuals, the AICPA is seeking broad relief to give additional time to file and make payments by extending certain deadlines on or after March 15, 2020, and before Oct. 15, 2020. This includes providing an automatic extension to Oct. 15, 2020, without requiring taxpayers to file any forms or request an extension.
In addition, they are asking for waivers of late payment penalties if individuals pay at least 70 percent of their current taxes due on April 15, 2020, waivers of interest through Oct. 15, 2020, and waivers of underpayment penalties for 2020 estimated tax payments if they are paid by Sept. 15, 2020. They also propose an extension of the IRA contribution deadline to Oct. 15, 2020.
“We are hearing from our members that they and their clients are experiencing great uncertainty about this year’s tax filing season. Our recommendations will help give taxpayers, large and small, much needed relief in the midst of this fast-moving emergency situation.”
Edward Karl, VP of Taxation, AICPA
Similar to individuals, for businesses, the AICPA has requested relief to give more time to file and make payments by extending certain deadlines on or after March 15, 2020, and before Oct. 15, 2020, including provision of an automatic extension without filing any forms or extension requests.
They have requested waivers of late payment penalties and interest for businesses through Oct. 15, 2020. Also, they requested the IRS provides appropriate relief for all businesses and tax-exempt organizations in the areas of elections and filings including payroll and excise taxes.
“The AICPA is urging Treasury and the IRS to issue extensive relief for businesses as soon as possible,” said Amy Wang, AICPA senior manager – tax policy & advocacy. “Consistent with the approach they generally take with disasters, the relief should apply broadly to tax-related filings (deadlines, payments, elections, informational filings, etc.). We continue to rely on the IRS’s careful consideration in providing appropriate and much needed relief to affected businesses. We recommend an extension of time for businesses to file to make IRA contributions to October 15, 2020.”