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IRS Announces Coronavirus Relief

Client Alert
March 19, 2020

On March 18, the IRS released Notice 2020-17, Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic which sets forth the scope of the relief being granted taxpayers.

What Has Been Extended

The Notice provides for the extension of payment of up to $1 Million on the balance due on 2019 individual returns (Form 1040) and trust and estate returns (Form 1041) until July 15, 2020. It also provides for the extension of time to make the first federal estimated payment until July 15, 2020. Under both circumstances, there will be no penalty or interest assessed; provided payment is made by the July date. It has been explicitly stated that interest and penalty will begin to be calculated and imposed effective July 16, 2020.

C corporations and consolidated groups whose returns are due on April 15, 2020, have also received an extension to make payments while avoiding the imposition of penalty and interest until July 15, 2020. Each C corporation that is not part of a consolidated group will be able to defer the payment of up to $10 Million on the balance due on 2019 corporate returns. Each consolidated group will be able to defer the payment of tax due up to $10 Million. Submission of any estimated payments due on April 15, 2020, has been extended as well. As with individuals, interest and penalties will begin to be charged effective July 16, 2020.

What Has Not Been Extended

Most importantly, the filing deadline has not been extended. All returns must be filed or extended by April 15, 2020. While there is no form that is required to receive the payment relief set forth above, they have not waived the penalty and interest for failure to timely file your returns.

Additionally, note that this extension applies only to federal INCOME taxes. That means if you owe any other type of tax (most notably, I point out that first quarter payroll taxes are due April 30, 2020), you still must file those returns and pay the taxes on time. Penalty and interest will be assessed from the normal due date.

What We Still Don’t Know

At this point, we still have not received any guidance from the State of Ohio or any city about the filing and payment deadlines for any taxes due.

As always, we will continue to update you with any changes. For more information, please contact BMD Business, Corporate & Tax Member, Priscilla Grant at pagrant@bmdllc.com or 330-253-5934.

IRScoronavirustax reliefPriscilla Grant
Client Alert

CHANGING TIDES: Summary and Effects of Burnett et. al. v. National Ass’n of Realtors, et. al.

January 17, 2024In April 2019, a class-action Complaint was filed in federal court for the Western District Court for Missouri arguing that the traditional payment agreements employed by many across the United States amounted to conspiracy resulting in the artificial increase in brokerage commissions. Plaintiffs, a class-action group comprised of sellers, argued that they paid excessive brokerage commissions upon the sale of their home as a result of the customary payment structure where Sellers agree to pay the full commission on the sale of their property, with Seller’s agent notating the portion of commission they are willing to pay to a Buyer’s agent at closing on the MLS or other similar system.Client Alert

The Ohio Board of Pharmacy’s Latest Batch of Rules: What Providers Should Know

January 15, 2024The Ohio Board of Pharmacy released several new rules and proposed amendments to existing rules over the past month that will significantly impact pharmacy operations. Topics range from updates to the Terminal Distributor of Dangerous Drugs license to mobile clinics to mandatory rest breaks for pharmacists of outpatient pharmacies. A summary of the proposed changes is below, along with instructions for commenting on the rules. Your BMD healthcare attorney can help write comment letters and submit the comments on your behalf as well.Client Alert

Employee or Independent Contractor? New Guidance Issued by the Department of Labor

January 10, 2024On January 9, 2024, the U.S. Department of Labor (DOL) issued its long-awaited final rule — effective March 11, 2024 — revising its prior interpretation of worker classifications under the federal Fair Labor Standards Act (FLSA). The new final rule rescinds the standard previously established in 2021, in turn, shifting the analysis of whether a worker is an employee (versus an independent contractor) of a business from a more streamlined “economic reality” test to a more complex “totality of the circumstances” standard.Client Alert

Increased Medicaid Rates to Take Effect This Month for Ohio Providers

January 5, 2024As required by House Bill 33, Ohio’s 2024-2025 operating budget bill, reimbursement rates paid by the Ohio Department of Medicaid will increase for a wide range of providers starting on January 1, 2024.Client Alert

Corporate Transparency Act Update

December 27, 2023The Corporate Transparency Act (“CTA”), with an effective date of January 1, 2024, is set to impose strict reporting guidelines on business owners throughout the country. The following provides a brief update on two aspects of the CTA ahead of its effectiveness next week.
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