The 3 Key Provisions & What You Need to Know
The recently enacted Coronavirus Aid, Relief and Economic Security (CARES) Act is the largest stimulus package in our nation's history. It consists of three key provisions designed to support individual Americans and our economy.
Scammers, fraudsters, and other criminals are taking advantage of rapidly changing data and facts associated with COVID-19, both in the workplace and in our homes. Government agencies, corporations, and news outlets continue to warn individuals to be mindful of increased fraudulent activities during these uncertain times.
These scams, which can be sent via email, text message, and social media claim to provide COVID-19 updates, sell products, ask for charitable donations, or reference government aid packages. These messages appear to be legitimate in nature but seek to fraudulently obtain personal information, financial gain, and create panic. Use these tips to identify and avoid scams:
When in doubt, ask a coworker, family member, or friend for their opinion. Two sets of eyes are better than one. If you believe you have fallen victim of a scam, call your local police at their non-emergency number and consider reporting to the FBI’s IC3 Internet Crime Database.
In Notice 2020-18, the Treasury Department and the Internal Revenue Service (IRS) announced special Federal income tax return filing and payment relief in response to the ongoing Coronavirus Disease 2019 (COVID-19) emergency.
Any person with a Federal income tax return or payment due on April 15, 2020, will not need to file or pay until July 15, 2020. This includes any type of taxpayer, such as an individual, a trust, an estate, a corporation, or any type of unincorporated business entity.
The return or payment must be due on April 15, 2020 – this relief does not apply to Federal income tax returns and payments due on any other date.
This also gives you more time to contribute money to your IRA for 2019, which can be made any time until the due date for filing your return that year. Because the due date for filing Federal income tax returns has been postponed to July 15, the deadline for making contributions to your IRA for 2019 is also extended to July 15, 2020. For more details on IRA contributions, see Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs).
This applies only to federal income tax filings. State filings and payment deadlines vary by state and may be different than the federal deadlines. More information is available at https://www.taxadmin.org/state-tax-agencies.
For more information, please see the IRS Filing and Payment Deadlines Questions and Answers page, and consult your tax professional for any specific tax questions.
Additionally, the CARES Act was signed into law last week and makes some provisions for retirement plans and accounts. Specifically, it waves Required Minimum Distributions (RMDs) for the calendar year 2020 for IRAs, 401(k) plans, section 403(b) plans, and section 457 plans.
There are also coronavirus-related distributions permitted without penalty for those who have been, or whose spouse or dependent has been diagnosed with the virus and have experienced certain adverse financial consequences as a result. Plan loans have also been broadened for 180 days beginning on the date of the Act to a maximum of $100,000 instead of $50,000 and an account balance limit of 100% instead of 50%.
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