The American Institute of CPAs (AICPA) today called for the Treasury Department and IRS to immediately provide more extensive relief to all taxpayers in light of the uncertainty and challenges caused by the spread of the Coronavirus (COVID-19) pandemic.
On Tuesday, the IRS posted FAQs on the postponement of tax filing and payment deadlines. The FAQs, which are not citable as legal authority, provide informal guidance to taxpayers and their advisors relying on Notice 2020-18. The AICPA appreciates the Treasury Department’s and IRS’s efforts to provide clarification on the tax payment and filing relief announced last week but reiterates the importance of providing more extensive relief during this critical time.
Specifically, the AICPA urges the Treasury Department and IRS to consider the following recommendations, which will provide relief to millions of individuals and businesses affected by a broad array of coronavirus-related issues:
- Relief Should Extend to All Deadlines: Postpone all deadlines and provide additional time to make payments. Taxpayers who do not have an April 15th payment or filing date are inherently disadvantaged and would similarly benefit from a deferral. They and their advisors need additional time for filings, tax payments, estimated taxes and gathering pertinent information to include in those filings or payment calculations.
- Relief Should Apply to All Filers and Types of Tax: Provide appropriate filing and payment relief for all filers and taxpayers (including tax-exempt organizations and fiscal year corporations) for tax returns, information returns, elections, claims for refund and other correspondence. Relief should also apply broadly to all types of taxes (including payroll, excise tax, estate, gift and generations-skipping transfer tax, etc.). Deferment of other taxes that are not income taxes is necessary to aid both businesses and their employees.
“We greatly appreciate the deferral for income tax payments and the filing relief provided for in the Notice. However, the economic impact of COVID-19 is wide-ranging, and additional relief and answers are needed,” said AICPA Vice President of Taxation, Edward Karl, CPA, CGMA. “With shelter-in-place orders issued throughout the country and a spreading pandemic, there is a significant list of filing and payment challenges left unresolved.”
“We urge the Treasury Department and IRS to grant additional relief in these uncertain times and offer our assistance in identifying specific areas in need of FAQs or formal authoritative guidance,” Karl continued.