In this episode, we review the enactment of the Coronavirus Aid Relief and Economic Security (CARES) Act.
This edition of the ITS Spotlight for week ending 27 March focuses on the CARES Act that was enacted and delves into the stimulus that it provides. It details the cheques and insurance provisions that are being extended to households and businesses as well as loans for small businesses and the funding of medical research and equipment to counter the pandemic.
There’s also a look at the new IRS Frequently Asked Questions around filing and payment extensions, and an overview of the new people-first initiative that the IRS has announced that is designed to take the strain off the public during these trying times.
This EY weekly spotlight focuses on the enactment on the Coronavirus Aid Relief and Economic Security (CARES) Act, a stimulus package costing around £2 trillion that addresses the COVID-19 crisis. It’s the third Coronavirus bill to be passed by Congress in the last several weeks, and is due to be signed into action by the President shortly. A fourth bill is expected to be needed.
The CARES Act broadly provides for direct cheques to households under certain income thresholds, expanded unemployment insurance, loans to small businesses and stabilization of key industries (paired with accountability provisions).
The legislation also addresses investment in medicines and vaccines and the provision of medical equipment.
The CARES Act includes eight business tax provisions, aimed at providing liquidity to keep businesses afloat. It does not include several proposals that were included in a prior Senate Republican draft of the bill.
In addition, the IRS posted several Frequently Asked Questions on the extension of certain filing and payment deadlines to 15 July that was issued last week. The FAQs indicate that any taxpayer whose return has been pushed back, also does not need to make their Section 965 installment payment until 15 July, or file Form 8991 and make a BEAT payment until the same date.
Finally, the IRS has unveiling a people-first initiative to address COVID-19 that adjusts or suspends key compliance programs. Highlights include conducting no new examinations, but they will continue to work refund claims. Appeals employees will also continue to work remotely with video calls available.
- Understanding the stimulus packages provided as part of the CARES Act and the intentions behind the bill
- Exploring the new Frequently Asked Questions posted by the IRS regarding the extension of payment and filing deadlines from April to 15 July, specifically inclusive of any Section 965 installment payments or BEAT payments
- Understanding the support offered by the IRS as part of their new people-first initiative to support taxpayers through the COVID-19 pandemic including suspension of new examinations
Duration 05m 32s
In this seriesSeries overview