TAG Tax


Authors: Sharon C. Lincoln and Eric W. Dyer

As the economic impact of COVID-19 continues to be felt throughout the United States, the federal government has provided $2.2 trillion in relief by enacting the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which was signed into law on March 27.

Read more: The CARES Act — Omnibus Overview


When President Trump formally announced that the COVID-19 pandemic was a national disaster, he opened the way for employers – businesses and nonprofit organizations alike – to make tax-free payments to employees who incur COVID-19-related obligations that are not reimbursed by insurance or otherwise.

Section 139 of the Internal Revenue Code provides that any “qualified disaster relief payment” does not constitute taxable income to an individual.

Read more: Employers May Make Tax-Free Disaster Relief Payments to Employees


On March 20, 2020, the IRS published Notice 2020-18, clarifying that “Tax Day” for both filing and payment of federal income tax has been moved from April 15, 2020 to July 15, 2020.

As background, in response to the COVID-19 pandemic and the Emergency Declaration issued by President Trump on March 13, the Department of the Treasury was instructed “to provide relief from tax deadlines to Americans who have been adversely affected by the COVID-19 emergency, as appropriate, pursuant to 26 U.S.C. 7508A(a).” The Secretary of the Treasury has the authority to postpone tax filing and payment deadlines. Any postponement for up to one year will still be considered “timely” under the Internal Revenue Code and its regulations.

Read more: Federal Tax Filing and Payment Deadline Extended – New IRS Guidance on Coronavirus Income Tax Relief


Authors: Tony Frasca, Michael Cumming, Tyler Kemper

On Friday, March 20, 2020, the Department of the Treasury issued Notice 2020-18 (which supersedes Notice 2020-17 issued two days prior), postponing tax filing and payment deadlines for many taxpayers in order to grant some amount of relief to individuals and businesses amid the Coronavirus/COVID-19 crisis. In contrast to Notice 2020-17, Notice 2020-18 not only provides many taxpayers with the ability to defer Federal income tax payments otherwise due by April 15, 2020, but also postpones the April 15 filing deadline for Federal income tax returns. Notice 2020-18 does not, however, postpone or alter the deadline for estimated quarterly payments due June 15, 2020.

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Authors: Tony Frasca, Michael Cumming, Tyler Kemper

On Wednesday, March 18, 2020, the Department of the Treasury issued Notice 2020-17, postponing payment deadlines for many taxpayers in order to grant some amount of relief to businesses and individuals amid the Coronavirus/COVID-19 crisis. The Notice provides many taxpayers with the ability to defer federal income tax payments otherwise due by April 15, 2020, but does not postpone or alter the April 15 filing deadline or estimated payments due June 15, 2020.

Read more: Federal Tax Relief Is on the Way: Notice 2020-17 Issued in Response to COVID-19