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IRS to Permit Mid-Year Health Plan Changes

As part of the Federal Government’s ongoing response to the COVID-19 pandemic, the IRS issued Notice 2020-29. This notice modifies the rules for mid-year elections in employer-sponsored health plans and health flexible spending accounts (FSA) in cafeteria plans. As a general rule, employee elections for such arrangements must occur prior to the beginning of the […]

IRS Suspends Tax Compliance Programs to Assist American Taxpayers During COVID-19 Crisis

On March 25, the Internal Revenue Service (IRS) announced its People First Initiative, which rolls out significant changes in compliance and collection procedures to mitigate obstacles presented by COVID-19. The release of this initiative goes well beyond extending the federal filing deadline, with the unprecedented suspension of many compliance programs to assist taxpayers who may […]

IRS Formally Announces Deferral of Filing and Payments to July 15

Just a few days after the original guidance, Notice 2020-17 superseded, was issued by the U.S. Treasury Department, a new notice, Notice 2020-18, was released on March 21 to provide expanded relief to taxpayers affected by the ongoing coronavirus pandemic. The notice officially confirms the announcement made by U.S. Treasury Secretary Steven Mnuchin early Friday […]

Tax Payment Deferral Amid COVID-19

On March 18, the Internal Revenue Service and the Treasury Department released the formal guidance (Notice 2020-17) on deferring tax payments amid the coronavirus (COVID-19) pandemic. The guidance allows individual and corporate taxpayers to defer making federal income tax (including self-employment tax) payments due on April 15, 2020 until July 15, 2020, without incurring penalties […]

New Tax Payment Deadline: July 15

On March 17, Treasury Secretary Steven Mnuchin announced that the government is pushing back the April 15 tax payment deadline to July 15. The payment extension is part of the administration’s efforts to curb the economic impacts of the coronavirus (COVID-19) pandemic, and gives taxpayers and many businesses three more months to pay taxes owed […]

IRS Extends ACA Reporting Deadline

The Internal Revenue Service (IRS) recently issued Notice 2019-63, which, once again, extends the deadline for Affordable Care Act (ACA) reporting requirements under Code Sections 6055 and 6056 . Originally scheduled for January 31, 2020, the deadline for reporting to employees and covered individuals is now March 2, 2020. This extension is automatic, and the […]

IRS Ramps Up Cryptocurrency Enforcement

On July 26, 2019, the Internal Revenue Service (IRS) issued a press release notifying the public that the IRS has begun sending educational letters to taxpayers with “virtual currency transactions that potentially failed to report income and pay the resulting tax from virtual currency transactions or did not report their transactions properly.” By the end […]

IRS Large Business & International Division Continues to Push Targeted Audit Campaigns, Announcing 6 More Areas of Compliance Focus

The Internal Revenue Service’s (IRS) Large Business & International Division (LB&I) recently announced six additional compliance campaigns, which brings the total number of campaigns to 59. This move reflects LB&I’s continued efforts towards issue-based examinations and compliance enforcement, in line with “LB&I’s goal … to improve return selection, identify issues representing a risk of non-compliance, […]

IRS Releases Draft 2019 Form 1040 and Schedules

The Internal Revenue Service (IRS) has released a draft of the 2019 Form 1040 and its associated schedules. After splitting the individual income tax return into six schedules as part of the Tax Cuts and Jobs Act (TCJA), the IRS’s draft Form 1040 for 2019 further reduces the number of schedules to three, eliminating Schedules […]

IRS Releases HSA Contribution Limits for 2020

The Internal Revenue Service (IRS) recently released the 2020 annual contribution limits for health savings accounts (HSAs). These limits are typically adjusted each year for inflation. The 2020 limits are $3,550 for an individual with self-only coverage and $7,100 for an individual with family coverage up $50 and $100 respectively. Catch-up contributions for individuals age […]