May 26, 2020

Coronavirus: Recent Tax-Related Developments

Possible Tax Filing and Payment Extension. At a House subcommittee meeting yesterday, March 11, 2020, Treasury Secretary Steven Mnuchin announced that the Treasury Department is considering extending the deadline for certain taxpayers and small businesses to pay taxes until December 31, 2020.  No interest or penalties would be imposed on taxpayers filing by the extended deadline.  Mnuchin said that the extension would amount to more than $200 billion of liquidity.

Sections 7508A of the Internal Revenue Code and Treasury regulations section 301.7508A-1 grant the Treasury Department and the IRS the authority to grant filing and payment extensions for income taxes and other taxes administered by the IRS for up to one year to any taxpayer determined to be affected by a “federally declared disaster”.  A federally declared disaster is any disaster determined by the President to warrant assistance by the federal government under the Robert T. Stafford Disaster Relief and Emergency Assistance Act.  This Act gives the President broad discretion to declare an emergency for which federal assistance is necessary.

Democratic members of the House Ways and Means Committee and several Democratic Senators had requested the extension.

Resistance to The Suggestion for a Payroll Tax Holiday.  Treasury Secretary Mnuchin also renewed calls on Congress for a payroll tax holiday.  Both Democratic and Republican members of Congress have rebuffed these calls.

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About this Author

David S Miller, Proskauer, derivatives issuance lawyer, cross border lending transactions attorney
Partner

David Miller is a partner in the Tax Department. David advises clients on a broad range of domestic and international corporate tax issues. His practice covers the taxation of financial instruments and derivatives, cross-border lending transactions and other financings, international and domestic mergers and acquisitions, multinational corporate groups and partnerships, private equity and hedge funds, bankruptcy and workouts, high-net-worth individuals and families, and public charities and private foundations. He advises companies in virtually all major industries,...

212.969.3006
Elizabeth Wytock Tax Attorney
Associate

Elizabeth Johnston Wytock is an associate in the Tax Department. Elizabeth earned her J.D. from the University of Virginia School of Law, where she was the executive editor of the Virginia Law Review. While at UVA Law, she worked as a legal intern for the Honorable Nancy Atlas and the Honorable Mary Milloy at the U.S. District Court for the Southern District of Texas.

Prior to law school, Elizabeth served as a health policy program assistant at the National Academy of Sciences in Washington, D.C. She received her B.A. from Georgetown University.

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