In Notice 80-20-002, May 5, 2020, the Mississippi Department of Revenue has advised that the due date for filing income tax returns and making first and second quarter estimated payments is extended t July 15, 2020, consistent with the Federal Covid extension. The notice applies to individual and fiduciary income tax returns and corporate income and franchise tax returns.
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.
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).
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.
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
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.
The IRS has issued its Notice 2020-20 amplifying prior Notice 2020-18 to provide that the April 15, 2020 due date for filing Forms 709 and making payments of Federal gift and generation skipping transfer tax is extended to July 15, 2020. The filing of the tax forms may be further extended by filing an extension request by such date later date, but the tax, if any, must be paid by July 15, 2020, in any event. IRS Notice 2020-20.
IRS Establishes April 1, 2020, as Start Date for Refundable Credits.
The Families First Coronavirus Response Act authorizes the Secretary of the Treasury to establish the date on which the provisions of the Act will first apply to qualified sick leave and family leave wages that may be taken into account for purposes of the credit provisions. In IRS Notice 2020-21, the IRS advises that the date selected by the Secretary is April 1, 2020, so the refundable tax credits for employers will apply to qualified sick leave and family leave wages paid for the period from April 1, 2020 to December 31, 2020. IRS Notice 2020-21.