AICPA Calls for Tax Relief for Individuals and Businesses Amid Coronavirus Pandemic

The AICPA is urging the U.S. Department of the Treasury and the IRS to provide relief to all taxpayers in light of the uncertainty and challenges caused by the coronavirus (COVID-19) pandemic.

The AICPA made the following recommendations for individuals:

  • Extend certain deadlines falling on or after March 15, 2020 and before Oct. 15, 2020 to give individuals additional time to file and make payments through Oct. 15, 2020.
  • Provide an automatic extension to Oct. 15, 2020, without the need to file any forms or request an extension.
  • Waive late payment penalties if at least 70% of an individual’s current tax due is paid by April 15, 2020 and waive interest through Oct. 15, 2020.
  • Waive underpayment penalties for 2020 estimated tax payments if paid by Sept. 15, 2020.
  • Extend the IRA contribution deadline.

The AICPA made the following recommendations for businesses:

  • Extend certain deadlines falling on or after March 15, 2020 and before Oct. 15, 2020, to give businesses additional time to file and make payments through Oct. 15, 2020.
  • Provide an automatic extension without the need to file any forms or request an extension.
  • Waive late payment penalties and interest through Oct. 15, 2020.
  • Provide appropriate relief for all businesses and tax-exempt organizations regarding elections and filings (including payroll, excise tax, etc.).

“We are hearing from our members that they and their clients are experiencing great uncertainty about this year’s tax filing season. Our recommendations will help give taxpayers, large and small, much-needed relief in the midst of this fast-moving emergency situation,” says Edward Karl, AICPA vice president of taxation.