On Friday March 27, 2020 President Trump signed the CARES Act in to law. This $2.2 trillion Act has numerous provisions that effect individuals and business, particularly through the tax system. We have detailed some of the more important pieces here for you.
The Connecticut Department of Revenue Services (DRS) is using their statutory authority to grant an automatic extension of Connecticut filing deadlines for certain annual tax returns in order to support businesses during the COVID-19 outbreak effectively immediately. This is consistent with the emergency declarations signed by Governor Lamont.
On March 26, 2020, CT Governor Ned Lamont issued Executive Order 7N which among over things, temporarily suspends the $ 0.10 tax on single-use plastic bags through May 15, 2020 unless earlier modified, extended, or terminated by him.More guidance should be issued by the Commissioner of Revenue so check back.
The order also establishes that employees of any retail establishment can not be required to bag items into a customer-provided bag, but does not explicitly ban their use.
The IRS released details of their new "People First Initiative" on March 25, 2020. The steps outlined in this intiative (IR-2020-59) will assist taxpayers by providing relief on a variety of issues ranging from easing payment guidelines to postponing compliance actions.
"The IRS is taking extraordinary steps to help the people of our country," said IRS Commissioner Chuck Rettig. "In addition to extending tax deadlines and working on new legislation, the IRS is pursuing unprecedented actions to ease the burden on people facing tax issues. During this difficult time, we want people working together, focused on their well-being, helping each other and others less fortunate."
"The new IRS People First Initiative provides immediate relief to help people facing uncertainty over taxes," Rettig added "We are temporarily adjusting our processes to help people and businesses during these uncertain times. We are facing this together, and we want to be part of the solution to improve the lives of all people in our country."
The Internal Revenue Service has clarified and issued further guidance for us on the extended due dates for tax returns and payments because of the current pandemic. This includes information on steps to be taken and whether Individual Retirement Arrangement (IRA) or Health Savings Account (HSA) contributions need to be made by April 15.
Dear Clients, Friends & Associates:
As everyone is aware of the current local and national efforts to diminish the spread of the COVID-19 virus, we at Don Brooks & Associates, Inc. want to let you know our office is currently conducting business in-office. Please do not hesitate to call or email us to discuss any pending or new tax matters.