Federal and State Updates Regarding COVID-19

by WSCPA | May 05, 2021

Updated May 27, 2021

SBA Launches $100M Community Navigator Pilot Program (SBA) (May 25)

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

Washington State Board of Accountancy

  • The Board of Accountancy will hold its next regular Board meeting Friday, January 29th, 2021 beginning at 9:00 a.m. virtually through Microsoft Teams. 
  • The Washington State Board of Accountancy office will be closed on the following days: July 20, August 24, September 28, October 12, November 2, 2020.

Office of the Washington State Auditor


Federal

Internal Revenue Service

  • How to claim the employee retention credit for the first half of 2021 (Journal of Accountancy) (April 5) 
  • IRS extends additional tax deadlines for individuals to May 17 (IRS) (March 29) - View the letter here.
  • Tax Day for individuals extended to May 17: Treasury, IRS extend filing and payment deadline (IRS) (March 17)
  • IRS issues employee retention credit guidance (Journal of Accountancy) (March 2)
  • Some individual taxpayers get relief from underpayment penalty (Journal of Accountancy) (Jan 19)
  • New PPP guidance issued by SBA, Treasury (Journal of Accountancy) (Jan 7)
  • IRS releases guidance on deductibility of eligible Paycheck Protection Program Expenses (IRS) (Jan 6)
  • IRS releases final guidance on Paycheck Protection Program (IRS) (Nov 17) 
  • IRS releases state-by-state breakdown of nearly 9 million non-filers who will be mailed letters about Economic Impact Payments (IRS)
  • IRS issues guidance on COVID-19 testing ( Journal of Accountancy)
  • IRS to mail special letter to estimated 9 million non-filers (IRS)
  • IRS temporarily stops mailing notices to taxpayers with balances due (IRS)
  • IRS posts information about check processing backlog and incorrect notices (Journal of Accountancy
  • IRS offers guidance on recapturing excess employment tax credits amid coronavirus (Accounting Today)
  • IRS not extending July 15 filing deadline (IR-2020-134)
  • IRS permits remote signatures for plan loan consents (Journal of Accountancy)
  • "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

  • NEW SBA Launches $100M Community Navigator Pilot Program (SBA) (May 25)

  • SBA stops accepting new PPP applications from most lenders as general funds run out (Journal of Accountancy) (May 5)

  • SBA defers EIDL payments until 2022 (Journal of Accountancy) (March 12)

  • PPP borrowers can use gross income, SBA rules (Journal of Accountancy) (March 3)

  • Procedural Notice - Paycheck Protection Program Excess Loan Amount Errors (SBA) (Jan 15)

  • Procedural Notice - PPP Borrower Resubmissions of Loan Forgiveness Applications Using Form 3508S, Lender Notice Responsibilities to PPP Borrowers, and Offset of Remittances to Lender for Lender Debts (SBA) (Jan 15)
  • How to Calculate Maximum Loan Amounts for First Draw PPP Loans and What Documentation to Provide - By Business Type (SBA) (Jan 17)
  • Guidance issued for PPP first-draw loan increases, reapplications (Journal of Accountancy) (Jan 14)
  • SBA Re-Opening Paycheck Protection Program to Small Lenders on Friday, January 15 and All Lenders on Tuesday, January 19 (Department of Treasury) (Jan 13); PPP application dates announced (Journal of Accountancy)
  • PPP application forms released (Journal of Accountancy) (Jan 11)
    • Form 2483 – Paycheck Protection Program Borrower Application Form (SBA)
    • Form 2483-SD – PPP Second Draw Borrower Application Form (SBA)
  • New PPP guidance issued by SBA, Treasury (Journal of Accountancy) (Jan 7)

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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