Federal and State Updates Regarding COVID-19

by WSCPA | May 26, 2020

Updated June 1, 2020.

State & Local

  • Governor Inslee issued a "Stay at Home, Stay Healthy" order for Washington on March 23 at 5:30 pm. Financial services are categorized as "essential". Learn more about the Governor's  announcement and the list of "essential services."

Department of Revenue

City of Seattle

City of Bellevue

City of Tacoma

Pierce County Connected: COVID-19 Emergency Response Fund

State Board of Accountancy

Office of the Washington State Auditor

  • The annual financial report filing deadline has been extended to June 17. View State Auditor Pat McCarthy's message and additional information here.
  • State Auditor Pat McCarthy has requested an emergency declaration to delay the filing deadline for local governments to submit annual financial reports.

Federal

Internal Revenue Service

  • "Treasury will let employers claim retention tax credit and provide insurance to furloughed workers" and reverse current guidance (Accounting Today)
  • Notice 2020-32 contains guidance that taxpayers receiving a loan through the Paycheck Protection Program cannot deduct expenses that are normally deductible if those expenses have been reimbursed by a PPP loan that is forgiven. (Journal of Accountancy)
  • IRS has temporarily stopped collection activities for taxpayers on installment agreements between April 1 and July 15, 2020. (Accounting Today)
  • IRS and Department of Treasury released Revenue Procedure 2020-20, Revenue Procedure 2020-27, and a FAQ page for those affected by travel. (Accounting Today)
  • IRS posts FAQs on paid sick and family leave in the Families First Coronavirus Response Act (Journal of Accountancy)
  • The IRS issued Notice 2020-23 granting filing relief to all taxpayers that have a filing or payment deadline falling on or after April 1, 2020, and before July 15, 2020, including individuals, trusts, estates, corporations, and other noncorporate tax filers, and that period will be disregarded by the IRS in calculating any interest, penalty, or addition to tax for failure to file the forms specified in the notice (Journal of Accountancy).
  • Get the latest news and updates from the IRS newsroom and Coronavirus Tax Relief resource center.
  • The IRS released a DRAFT form and DRAFT instructions for IRS Form 7200 for employers to use to request advanced payroll tax credits for providing employees with expanded family and medical leave or emergency paid sick leave.  
  • Notice 2020-20 postpones the date for filing gift tax and generation-skipping transfer tax returns, and payments until July 15, 2020 (Accounting Today)
  • The IRS has suspended a number of services including its Practitioner Priority Service hotline, e-Services Help Desk, e-Services Filing Information Returns Electronically (FIRE), and the Affordable Care Act Information Return (AIR) help desks and hotlines until further notice. (Journal of Accountancy)
  • IRS lightens taxpayers' compliance and enforcement burden to help with COVID-19 (Accounting Today)
  • The IRS has posted FAQs in regards to the tax payment and filing relief announced last week: https://www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers
  • Internal Revenue Service has provided the formal guidance on the April 15 filing extension. See the update here.
  • Treasury Secretary Steve Mnuchin announced on Twitter that the filing deadline for all taxpayers will be extended to July 15. ("US tax filing deadline moved to July 15, Mnuchin says" CNN | Trump moves tax day to July 15 because of coronavirus).
  • "Following President Donald J. Trump’s emergency declaration pursuant to the Stafford Act, the U.S. Treasury Department and Internal Revenue Service (IRS) today issued guidance allowing all individual and other non-corporate tax filers to defer up to $1 million of federal income tax (including self-employment tax) payments due on April 15, 2020, until July 15, 2020, without penalties or interest.  The guidance also allows corporate taxpayers a similar deferment of up to $10 million of federal income tax payments that would be due on April 15, 2020, until July 15, 2020, without penalties or interest.  This guidance does not change the April 15 filing deadline." (U.S. Department of the Treasury).
  • The IRS has suspended all non-essential employee travel for 30 days.
  • Coronavirus Tax Relief IRS web page

Congress

Small Business Administration | Paycheck Protection Program

Other


Additional Resources

WSCPA Coronavirus Resources:

AICPA Coronavirus Resource Center

CORONAVIRUS (COVID-19) IN THE WORKPLACE: Legal and Regulatory Considerations

US Small Business Administration

National Governors Association 

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