Brunini Law

IRS extends deadlines for additional returns and payments.

April 13, 2020 by Brunini Law

In IRS Notice 2020-23 the IRS provides a list of additional returns and payments of tax that are due on or after April 1, 2020 for which filing and payment relief is provided. The listed payment obligations and return filings are now due on July 15, 2020.

IRS extends deadline for filing applications to carryback NOLs arising in 2018 and 2019.

The CARES Act contained provisions amending IRC Section 172(b)(1) to carry back any NOL arising in tax years beginning after December 31, 2017, and before January 1, 2021, to each of the five taxable years preceding the tax year of the NOL. However, the CARES Act did not amend the law extending the time for taxpayers realizing NOLs to apply for a tentative carryback adjustment of the tax liability in the carryback year and accelerate the refund of any resulting overpayments. In its Notice 2020-26, the IRS announced that it will grant a six-month extension of time to file a request for tentative carryback adjustment on Form 1045 or Form 1139 for an NOL arising in a taxable year that began during calendar year 2018 and that ended on or before June 30, 2019. These forms must now be filed by June 30, 2020. IRS Notice 2020-26.

IRS provides additional guidance regarding NOL carrybacks under the CARES Act.

The IRS has issued a Revenue Procedure providing additional guidance for net operating losses arising in 2018, 2019 and 2020. Under the CARES Act, such net operating losses may be carried back to the five taxable years immediately preceding the year of the loss. The Revenue Procedure addresses taxpayer elections to forego the carryback period, elections related to years in which foreign income is included in the taxpayer’s income under I.R.C. Section 965 and taxpayer options for net operating losses in tax years beginning before January 1, 2018, and ending after December 31, 2017. Rev. Proc 2020-24, 2020-17 IRB.

IRS Allows Partnerships to Claim CARES Act Benefits via Amended Returns

April 9, 2020 by Brunini Law

Under the centralized audit procedures for partnerships enacted by Congress in 2015, partnerships generally may not file amended returns without express authorization of the IRS. To enable partnerships and partners to take advantage of certain retroactive law changes under the CARES Act, the IRS has issued its Revenue Procedure 2020-23 allowing partnerships that filed a Form 1065 and furnished all required Schedules K-1 for taxable years beginning in 2018 or 2019 before the date of the revenue procedure may file amended partnership returns and furnish corresponding Schedules K-1 to its partners before September 30, 2020. Rev. Proc. 2020-23, 2020-18 IRB (April 8, 2020).

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Mississippi Department of Revenue suspends requirements under the International Registration Plan and International Fuel Tax Agreement

April 6, 2020 by Brunini Law

In an Order of the Commissioner dated March 24, 2020, the Department of Revenue has suspended requirements associated with the International Registry Plan and the International Fuel Tax Agreement for any motor vehicle engaged in interstate emergency relief efforts and traveling through Mississippi as part of the emergency relief. This includes motor vehicles carrying medical supplies or pharmaceuticals, supermarket products or food, or fuel. Additionally, any apportioned registration issued under the International Registration Plan expiring on March 31, 2020, is suspended and the expiration date is extended to April 30, 2020.

The Order is effective for 60 days from its date.

CARES Act Provides Substantial Funding for States, Counties, and Municipalities

April 3, 2020 by Brunini Law

The CARES Act provides $150 billion in Coronavirus Relief Funds for states, tribes and local governments. It is a centerpiece of the state aid in the CARES package, with the funds to be used to reimburse expenses incurred by the states and local governments as a result of Covid-19. Each state will receive funds based on population and at least $1.25 billion. Mississippi is expected to receive approximately $1.3 billion. The legislation provides that funding will be available directly to the states and to local governments serving populations over 500,000. Forty-five percent of the funds provided to each state are set aside for eligible expenses of local governments. With Mississippi not having a local government exceeding 500,000 in population, questions remain concerning access to funds by Mississippi cities and counties.

The CARES Act is the third COVID-19 relief package. Even as the Act is going into effect, a new fourth relief package is being developed. There have been numerous requests (1) for significant additional funds allocated to local governments with populations less than 500,000 or (2) to lower the threshold for direct Coronavirus Response Fund access through Section 5001 of the CARES Act.

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Statewide Shelter-in-Place Order in Plain English

April 2, 2020 by Brunini Law

On Wednesday, April 1, 2020, Governor Tate Reeves announced that Executive Order 1466 (“E.O. 1466”) will go into effect on Friday, April 3 at 5 p.m. and remain in effect until Monday, April 20 at 8 a.m. E.O. 1466 is a shelter-in-place order, also referred to as a stay-at-home order. As the name implies, it orders residents to stay within their residencies, but it is subject to exceptions. Important points from E.O. 1466 include:

Essential businesses and operations “may remain open and shall operate as necessary to provide essential services and functions.” While these businesses are not subject to the prohibition on social gatherings in excess of 10 persons, they should take reasonable measures to comply with the Centers for Disease Control and Prevention (“CDC”) and Mississippi Department of Health (“MDOH”) recommendations, e.g., social distancing. Essential businesses and operations are defined by Executive Order 1463 and the Supplement to Executive Order 1463 (collectively “E.O. 1463”). The definition of essential businesses and operations is discussed below.
Non-essential businesses and operations are prohibited from operating except for performing minimum operations. Minimum operations are those operations necessary for the business to maintain the condition of its facilities, premises and equipment, value of business inventory, administer payroll and employee benefits, provide security, and facilitate remote working.
Essential activities by residents are permitted, and include performing tasks such as buying groceries, working for an essential business, caring for someone in a vulnerable population, and individual outdoor recreation, e.g., walking or running. People who are outside for exercise must follow social distancing guidelines of maintaining at least a 6-foot distance and groups of 10 or less.
Essential travel by residents is permitted, and includes travel related to an essential business or operation, an essential activity, care for dependents, minors, elderly, disabled, or otherwise vulnerable persons, picking-up distance learning materials from an educational institution, to and from place of residence, or that required by law enforcement, court order, or child custody arrangement.
Expressly prohibited activities include social and non-essential gatherings in excess of 10 persons where individuals are less than six feet from one another, and operating indoor and outdoor places of amusement and recreation, such as museums, movie theaters, playgrounds, children’s parties, social clubs, and parks including all beaches, lakes, and reservoirs (but not walking trails). These are mandated closed. Dine-in service at restaurants and bars is also prohibited, but restaurants and bars may remain open only for drive-thru, curbside pick-up, or delivery service.
Evictions are suspended, but individuals are not relieved of contractual obligations to pay rent, mortgage, or otherwise comply with other obligations of their tenancy or mortgage contract.

The Order provides that it may be enforced by all state, county, and local law enforcement, as well as other government entities, and that violations are subject to Miss. Code Ann. § 33-15-43, which provides for a fine of up to $500 or imprisonment not to exceed six months, or both. Nothing in E.O. 1466 prohibits a local government from taking more restrictive action except that it may not prevent an essential business or operation “from operating at such level necessary to provide essential services and functions.”

An important initial question raised by many residents is what constitutes an “essential business or operation.” E.O. 1463 defines this term by providing 19 categories of essential businesses and operations. Although E.O. 1463 provides more specificity to the list below by providing specific examples of businesses that fall within each category, the categories are, in brief:

Essential government functions such as those related to public safety, health, and corrections.
Essential healthcare operations such as hospitals, laboratories, and nursing homes. The term is meant to be construed broadly but does not include gyms, spas, salons, barber shops, and similar personal care and grooming facilities.
Essential infrastructure such as power generation, fuel and transmission, communications networks, and airports.
Manufacturing such as food processing and production, medical equipment, and household products.
Agriculture and farms such as food cultivation, livestock, gas, diesel, and farmer’s markets.
Essential retail such as supermarkets, pharmacies, and hardware.
Essential services such as trash collection, mail services, home repair, automotive sales and repair, laundromats/laundry service, and warehouse, distribution, and fulfillment centers.
Media such as newspapers, television, digital, and radio.
Education such as educators supporting distance learning, performing critical research, or providing free and reduced meals.
Financial services such as banks, insurance, and accounting.
Professional Services such as legal services, accounting, insurance, and real estate.
Providers of basic necessities to economically disadvantaged populations (e.g., non-profits, businesses, and churches providing these necessities).
Construction and construction related services such as building and construction, lumber, electricians, cleaning and janitorial, or skilled trades.
Essential services necessary to maintain safety and sanitation of essential businesses and operations and residencies.
Defense Industrial Base including businesses and workers who provide essential products and services required to meet national security commitments to the Federal Government and the U.S. Military.
Vendors providing essential services and products needed to ensure the continued operations of essential businesses and operations, government, and provide for the health, safety, and welfare of the public.
Religious entities, provided they adhere to CDC and MDOH guidelines.
Categories of workers identified by the U.S. Department of Homeland Security, Cybersecurity & Infrastructure Security Agency (“CISA”) in its “Memorandum of Identification of Essential Critical Infrastructure Workers During COVID-19 Response.” Note CISA updated its guidance over the weekend of March 28, 2020.
Other categories as deemed necessary by MDOH, Mississippi Emergency Management Agency, or other state agency

If you have questions about any of the above, including whether your business qualifies as an essential business or operation, it is recommended you read E.O. 1463, the Supplement to E.O. 1463, and E.O. 1466, all of which provide more specificity, and also consult with an attorney.

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Matthew W. Allen

IRS Announces Relief from Failure to Deposit Employment Taxes

April 1, 2020 by Brunini Law

The recently enacted Families First Act and CARES Act authorize refundable tax credits for employers paying qualified leave wages or qualified retention wages under the Acts. In Notice 2020-22, the Internal Revenue Service has announced that no failure to deposit penalties or will be imposed on amounts of employment taxes that are not deposited to the extent such amounts are equal to or less than the amount of such refundable tax credits. Relief from Penalty for Failure to Deposit Employment Taxes

IRS Publishes FAQ on Employee Retention Credit

The CARES Act provides a refundable employee retention credit against payroll taxes for wages paid by employers that carry on a trade or business in 2020 that either (i) fully or partially suspends operations during any calendar quarter in 2020 due to appropriate governmental action or (ii) experiences a significant decline in gross receipts during the calendar quarter. The IRS has published a FAQ addressing, among other things, eligibility for the credit, how the credit is calculated, limits on the credit and how it relates to the refundable credit for sick or family leave wages allowable under the Families First Coronavirus Relief Act. IRS: Employee Retention Credit available for many businesses financially impacted by COVID-19; FAQs: Employee Retention Credit under the CARES Act

Mississippi Department of Revenue Installs Drop Box

The Mississippi Department Revenue headquarters is closed, but the Department has advised on Twitter that there is a drop box outside the building for any important documents taxpayers may need to submit.

IRS Publishes Extensive FAQ on Refundable Tax Credits for Paid Leave required under the Families First Coronavirus Response Act (FFCRA).

The FFCRA requires employers to pay employees up to 80 hours of additional sick and family leave required under the Act. The IRS has published a lengthy FAQ addressing the issues that may be encountered by affected employers including a full description of the credits and how they are calculated, limits on the credits and how they are calculated. COVID-19-Related Tax Credits for Required Paid Leave Provided by Small and Midsize Businesses FAQs

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CORONAVIRUS AND THE INTERRUPTION OF YOUR BUSINESS

April 1, 2020 by Brunini Law

As rapidly as the coronavirus is spreading its footprint across the globe, businesses of all shapes and sizes are closing their doors … and losing income. Unfortunately, Mississippi businesses are not exempt from this fast moving reality. Indeed, coffee shops, boutiques, restaurants, office complexes, and a variety of other businesses across the State have been forced to drastically change their operations or, in some cases, completely shutter their businesses in response to the coronavirus pandemic and the related government directives concerning travel and social distancing. As a result, many companies are already reporting lost profits, as well as a significant concern about the future of their businesses.

Fortunately, most companies carry a commercial property insurance policy, which typically includes not only coverage for property damage but also coverage for lost profits incurred as a result of damage to the covered property. In other words, a business may have coverage for its coronavirus lost profits through its commercial property policy. To know that, an insured should first review its policy to determine if it contains any of the following types of coverages which are frequently included in a commercial property policy.

Business Income/Interruption

Business Income/Interruption Coverage provides coverage for the loss of income an insured sustains as a result of a suspension of an insured’s operations. However, most policies require that the suspension stem from “direct physical loss or damage” caused by a “covered peril” (typically theft, fire, wind, falling objects or lightning) to the specific covered property. This type of coverage is most commonly found in circumstances where an insured’s covered property is damaged by a fire, or perhaps a storm, forcing the insured to suspend its operations for a period of time. In that scenario, the fire or storm damage to the subject property would be readily apparent, and assuming it is a covered peril, the claimant would have a strong claim for the income lost during the restoration period. However, a claim for lost income as a result of the coronavirus will be much more complex.

First, an insured will need to demonstrate “direct physical loss or damage” to its covered property. Given the nature of the coronavirus, however, there likely will be no apparent damage to the property. So, insureds will likely contend that, regardless of its visibility or lack thereof, the virus is within their workplace – albeit at a microscopic level – and that it is has in fact damaged their covered property.

Courts have heard similar arguments in other contexts (e.g. asbestos, gasoline fumes, etc.) and reached varying conclusions. Some have sided with the insureds that the contaminant damaged the property, while others agreed with the insurers that the contaminant had not damaged the insured’s property. This determination, which will involve a detailed analysis of the relevant policy and applicable law, will be the critical issue in evaluating these claims for coverage.

Next, an insured should review its policy to determine if it excludes coverage for business interruption claims based on communicable diseases. Due to the SARS outbreak in 2003, the insurance industry purportedly paid out a significant amount of claims based on “business interruptions” caused by SARS. After the SARS outbreak, and to avoid a repeat, the insurance industry began excluding losses incurred by communicable disease. Perhaps most importantly, in 2006, the heavily relied upon Insurance Services Office (ISO) issued form CP 01 40 07 06 excluding “loss or damage caused by or resulting from any virus, bacterium, or other microorganism that induces or is capable of inducing physical distress, illness or disease.” Determining whether the insured’s policy contains this exclusion will be a critical component of any coverage analysis.

Contingent Business Interruption

Commercial property policies routinely include coverage for disruptions in an insured’s supply chain. This coverage applies when damage occurs not to the insured’s property but to the property of others relied on by the insured to supply materials to the insured or its customers. Again, it is important to note that these policies usually require damage or physical loss caused by a covered peril to the supplier’s property. As with the Business Income/Interruption claim, the specific language of the policy will be critical in this analysis.

Order of Civil Authority

Many commercial property insurance policies provide coverage for business income losses sustained when a “civil authority” prohibits or impairs access to the policyholder’s premises. Some of these policies do not require “physical loss” to the insured’s covered property, and those that do sometimes do not require that the physical loss occur to the insured’s own property. Thus, if a governmental authority – federal, state, or local – prohibits or even limits access to an area including an insured’s business, the insured may have coverage for its loss of income under its “civil authority” coverage. Yet again, analysis of the specific language in the policy and applicable law will be critical in determining coverage.

The First Coronavirus Coverage Case

On March 16, 2020, Oceana Grill in New Orleans, Louisiana filed what is thought to be the first lawsuit – of many more to come – dealing with a coronavirus business interruption coverage dispute (Cajun Conti, LLC, et al. v. Certain Underwriters at Lloyd’s London, et al., Civil District Court for the Parish of Orleans, Louisiana).

In its Petition for Declaratory Judgment, Oceana Grill requested a declaration of coverage for coronavirus-caused losses under a business interruption policy. Oceana contends that it purchased an “all risk policy” from Lloyd’s of London, “which covers all risks unless clearly and specifically excluded” and further contends that “the policy does not provide any exclusion due to losses, business or property, from a virus or global pandemic.”

With respect to harm caused by the virus, Oceana contends that:

[T]he scientific community, and those personally affected by the virus, recognize the Coronavirus as a cause of real physical loss and damage….The virus is physically impacting public and private property, and physical spaces in cities around the world….The global pandemic is exacerbated by the fact that the deadly virus physically infects and stays on the surface of objects or materials, ‘fomites,’ for up to twenty-eight days, particularly in humid areas below eighty-four degrees….It is clear that contamination of the insured premises by the Coronavirus would be a direct physical loss needing remediation to clean the surfaces of the establishment.

Oceana also pointed out that the Louisiana Governor issued a statewide order banning gatherings of 250 or more people and the New Orleans Mayor issued additional operating restrictions on businesses.

For these reasons, Oceana has asked the Court to declare that:

The policy provides coverage to Plaintiffs for any future civil authority shutdowns of restaurants in the New Orleans area due to physical loss from Coronavirus contamination; and
The policy provides business income coverage in the event that the coronavirus has contaminated the insured’s premises.

This will be an important case to monitor as the coronavirus crisis and resulting business interruption coverage disputes continue.

The Brunini attorneys are closely monitoring developments in the coronavirus crisis and are counseling clients through the various legal and business issues involved in the crisis.

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COVID-19’s impact on Business Planning

March 31, 2020 by Brunini Law

Brunini’s Commercial Department recognizes the many difficult and unique business issues presented by the coronavirus crisis, and we remain steadfast in our commitment to provide uninterrupted, top-notch legal services. Our attorneys are actively monitoring developments related to the coronavirus crisis, including past and pending legislation—such as the U.S. Small Business Administration’s Economic Injury Disaster Loan program and other economic relief and/or stimulus programs—contemplated, designed and implemented by federal, state and local authorities.

Related Alerts:

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COVID-19 AND THE CONSTRUCTION INDUSTRY

March 31, 2020 by Brunini Law

President Trump recently referred to COVID-19 as the “invisible enemy.” While fighting an “invisible enemy” is daunting and should not be taken lightly, we want to make sure you are taking proactive steps to protect your people and to protect your interests on a project.

PROTECT YOUR PEOPLE

OSHA has set forth guidance and recommendations in dealing with COVID-19. You can access that document here. OSHA has divided job tasks into four risk exposure levels: very high, high, medium, and lower risk. OSHA believes most American workers will fall within the lower exposure risk and medium exposure risk levels; however, it is important for you to review OSHA’s criteria to better understand your exposure risk. Notwithstanding, for all exposure risk levels, OHSA recommends employers implement the following basic steps to reduce the risk of worker exposure in the workplace:

Develop an Infectious Disease Preparedness Plan;
Prepare to Implement Basic Infectious Prevention Measures;
Develop Policies and Procedures for Prompt Identification and Isolation of Sick People, if Appropriate; and
Develop, Implement, and Communicate about Workplace Flexibilities and Protections.

In developing and executing your workplace Preparedness Plans, remember that other laws and rules, such as the American with Disabilities Act (“ADA”) and Rehabilitation Act, continue to apply. However, they do not interfere with or prevent employers from following the guidelines and suggestions made by the CDC or state/local public health authorities about steps employers should take regarding COVID-19. Here are some practical and aggressive steps you can take to protect your workers:

Ask your employees if they are experiencing symptoms commonly associated with COVID-19.

During a pandemic, ADA-covered employers may ask employees if they are experiencing symptoms of the pandemic virus. For COVID-19, these include symptoms such as fever, chills, cough, shortness of breath, or sore throat. Employers must maintain all information about employee illness as a confidential medical record in compliance with the ADA.

Take your employees’ temperature.

Generally, measuring an employee’s body temperature is a medical examination and not permissible. However, because the CDC and state/local health authorities have acknowledged community spread of COVID-19 and issued attendant precautions, employers may measure employees’ body temperature. However, be aware that some people with COVID-19 do not have a fever, so this may not be the most reliable means for determining whether an employee has been affected.

Require employees to stay home if they have symptoms of COVID-19.

The CDC states that employees who become ill with symptoms of COVID-19 should leave the workplace. The ADA does not interfere with employers following this advice.

When employees return to work, require doctors’ notes certifying their fitness for duty.

Such inquiries are permitted under the ADA either because they would not be disability-related or, if the pandemic influenza were truly severe, they would be justified under the ADA standards for disability-related inquiries of employees. As a practical matter, however, doctors and other health care professionals may be too busy during and immediately after a pandemic outbreak to provide fitness-for-duty documentation. Therefore, new approaches may be necessary, such as reliance on local clinics to provide a form, a stamp, or an e-mail to certify that an individual does not have the pandemic virus.

Other practical steps:

Space workers out on the jobsite.
Use staggered skeleton crews.
Provide gloves and masks (if available and appropriate).
Regularly clean and disinfect job trailers and rest facilities.
Increase hand washing or hand sanitizing facilities.
Conduct video or telephonic conferences in lieu of in-person meetings.
Ask employees to help monitor their team members.

PROTECT YOUR INTERESTS

In addition to ensuring that your people are protected, make sure your interests in the project are protected.

Review executive orders issued by Governors of the States in which projects are located.

By reviewing those executive orders, you can determine whether construction is considered an essential service that may continue. Most likely, your projects will be allowed to continue as essential.

Review your contracts, subcontracts, and purchase agreements.

Review your contract’s safety provisions and know what is required of you. For example, Article 10 of the A201 assigns certain obligations to the Contractor to ensure the safety of personnel on the job site. Part of that responsibility requires compliance with all “applicable laws, statutes, ordinances, codes, rules and regulations of public authorities, bearing on the safety of persons . . . .” Be abreast of what leaders are recommending or requiring of employers. Implement the Preparedness Plan you developed and inform others for whom you are responsible what will be required of them on the jobsite. Communicate safety precautions early and often.

Locate your contract’s “force majeure” clause. A force majeure clause generally relieves parties from performing contractual obligations when an extraordinary event or circumstance beyond the parties’ control occurs. In the A201, this provision is located in § 8.3.1. In the Consensus 200, the force majeure clause is located in § 6.3.1. Nevertheless, it is important to locate the force majeure clause in your agreement because it will be the basis for any potential delay or impact cost claim you may have.

Analyze your contract’s claims provision. A contract’s claims provision outlines the steps you must take in order to put the other party on notice of an adjustment to the contract time or price you may require as a result of an unanticipated occurrence. In the A201, this provision is located in § 15.1. In the Consensus 200, it is located in § 8.4. Please note, it is not uncommon for a claims provision to require claims to be asserted within a specific period of time from the act giving rise to the claim, or the claim is waived.

Review your contract’s differing site conditions provision and change order and change directive provisions. In the A201, differing site conditions is discussed in § 3.7.4. Change orders and change directives are discussed in §§ 7.2 and 7.3. Familiarize yourself those provisions’ requirements.

As a practical matter, be proactive. Contact your clients on each of your projects and discuss with them whether they would like to suspend the Project or push forward. If the directive is to push forward with construction, notify your clients by letter of potential claims for additional time and additional costs that may arise from the difficulties and challenges presented by COVID-19. Document vigorously any basis for increased time or increased costs. Send letters to any subcontractors (or downstream personnel) advising them of the status of the Project, whether operations will continue, what will be required of them, and the need to document any claims for increased time or costs. Update your claims on a weekly—or even a daily—basis as you gain a better appreciation for the circumstances. Now is the time to put others on notice of any possible delay or impact cost that you anticipate may occur as a result of labor shortages and supply disruptions. Do not wait.

Contractors on federal projects, review FAR provision incorporated into your contract.

Construction contracts involving the federal government incorporate directly or by reference provisions of the Federal Acquisition Regulations (“FAR”). Review your contracts to determine what provisions have been included in your agreement that may offer some relief. For example, 48 CFR § 52.249-10 and 48 CFR § 52.249-14 discuss the occurrence of unforeseen events. 48 CFR § 52.242-15 discusses what happens if the federal government issues a stop-work order.

Study your insurance policies.

Review your insurance policies to determine whether you have business interruption coverage if the owner suspends or terminates the Project. If you do, decide whether it is appropriate to assert a claim. Generally, business interruption coverage covers loss of income that a business suffers as a result of a disaster. Whether “viruses” or other epidemiological events are covered losses will depend on the specific language of your policy. Make sure to pay attention to your policy’s exclusions and endorsements.

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IRS Publishes FAQs on Extended Filing and Payment Dates

March 31, 2020 by Brunini Law

The IRS has recently extended the filing of all income tax returns and the payment of income and self-employment taxes due on April 15, 2020, to July 15, 2020. In a FAQ on filing and payment deadlines, the IRS explains that you do not have to be sick, quarantined or otherwise impacted by COVID-19 for the extension to apply. The extension does not apply to filing due dates on May 15, June 15 or any date other than April 15. The extension does not apply to payroll, excise, or gift taxes. Payroll and excise tax filing, deposit and payment dates continue to apply. The deadline for IRA and HSA contributions by individuals and contributions to qualified retirement plans by employers whose tax returns are due on April 15 is extended to July 15. Filing and Payment Deadlines Questions and Answers

Treasury extends filing and payment due date for certain taxes.

On March 18, 2020, the Internal Revenue Service advised that any taxpayer with income tax returns and payments normally due on April 15, 2020, will now have until July 15, 2020, to file such returns and pay their taxes. This extension is automatic, so no formal extension request is required. The relief extends solely to 2019 Federal income tax payments, including self-employment tax payments, and Federal estimated income and self-employment tax payments for 2020. No interest, penalty or additions to tax will accrue during the extension period. IRS Notice 2020-18, superseding IRS Notice 2020-17. Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic

HSA’s not Affected by Payment of COVID-19 Medical Expenses without Deductible.

In IRS Notice 2020-15, the Internal Revenue Service advised taxpayers that a health plan that otherwise satisfies the requirements to be a “high deductible health plan” will not be disqualified because the plan provides medical care services and items purchased related to testing for and treatment of COVID-19 prior to the satisfaction of the applicable minimum deductible. IRS Notice 2020-15. High Deductible Health Plans and Expenses Related to COVID-19

IRS Announces People First Initiative.

The Internal Revenue Service has announced adjustments to its compliance and enforcement procedures to help people dealing with COVID-19 issues. These include suspending payments on installment agreements due between April 1 and July15, 2020, extending offers in compromise deadlines and suspending payments until July 15, 2020,suspending liens and levies initiated by field revenue offices and automated, systemic liens and levies. The IRS will not start new field, office or correspondence examinations during this time, except for statute of limitations considerations. Ongoing examinations will continue where possible without in-person meetings. Appeals officers will continue to work, but will not hold in person conferences. IRS unveils new People First Initiative; COVID-19 effort temporarily adjusts, suspends key compliance program

IRS and DOL Announce Implementation of Paid Leave and Tax Credits.

In a March 20, 2020, news release, the IRS and the DOL announced its plan to implement paid leave and tax credits provided in the Families First Coronavirus Response Act (the “Act”). The Act generally requires up to 80 hours of paid sick or child care leave related to COVID-19 illness. Employers are entitled to reimbursement for up to 100% of the cost of wages for such leave, including health insurance costs in the form of payroll tax credits. The credits are limited to $511 per day for employees who unable to work because they are in Coronavirus quarantine or self-quarantine or have Coronavirus symptoms and are seeking diagnosis or to $200 per day for employees who are caring for someone with Coronavirus or is caring for a child because the child’s school or child care facility is closed or provider is unavailable due to the Coronavirus. An additional credit is available for health insurance costs for such affected employees during the time they are on leave from work. The IRS advises that it will allow employers to reduce the amount of required payroll tax deposits by the amount of any credit available to the employer. If the amount of the credit exceeds the required deposit, the IRS is going to allow employers to file a request for an accelerated payment from the IRS, which the IRS expects to process in two weeks or less. Treasury, IRS and Labor announce plan to implement Coronavirus-related paid leave for workers and tax credits for small and midsize businesses to swiftly recover the cost of providing Coronavirus-related leave

Mississippi Department of Revenue Announces Extended Deadlines.

On March 23, 2020, the Mississippi Department of Revenue announced that the due date for all income tax returns and payments due on April 15, 2020, is postponed until May 15, 2020. Withholding tax payments for the month of April are extended until May 15, 2020. No interest or penalty will be imposed for the period of the extension. The extension does not apply to Sales Tax, Use Tax or any other tax types. Extensions for the COVID-19 Pandemic

Mississippi Department of Revenue issues press release addressing request for relief.

The Department issued a press release Thursday afternoon, March 26, 2020, addressing relief measures for Mississippi taxpayers. Income tax returns and payments due on April 15, 2020, have been extended to May 15, 2020, without penalty and interest. Deadlines for reporting and paying sales, use and local tax levies have not been extended, but the Department has agreed to delay imposition of interest and penalty on any unpaid tax balance for the period covered by the presidentially declared national emergency. The Department has no authority to extend local property tax deadlines, but has approved the extensions of (i) homestead applications until May 1, 2020 from April 1, 2020, (ii) first Monday in April tax sales to May 4, 2020, (iii) the due date for personal property renditions from April 1, 2020, to May 1, 2020, (iv) the deadline for tax assessors to furnish land rolls to the Boards of Supervisors from the first Monday in July to the first Monday in August, and (v) the due date for net income statements of affordable rental housing from April 1, 2020, to April 15, 2020. Mississippi has also suspended all penalty and interest accrual effective March 15, 2020, for the duration of the national emergency.

The Department will continue working open audits and take steps to minimize audit controversies and it will abate penalty and interest on any audits closed during the period of national emergency if the taxpayer settles without appeal and work with taxpayers on deadline for production of records.

The Department will not change withholding requirements based on an employee’s temporary telework location, but it will not impose new withholding requirements and will not use any changes in temporary work locations to impose nexus or alter apportionment formulas.

Appeal deadlines are not extended based upon their acceptance of such filings by electronic means.