Treasury announces tax payment relief; Senate clears COVID-19 bill; talks continue on stimulus tax measures

Overview

Treasury Secretary Steven Mnuchin on March 17 announced that individuals can defer tax payments up to $1 million for 90 days and corporations can defer tax payments up to $10 million for the same period. Specific details on tax payment relief were announced today by the IRS. 

The Senate today voted 90 to 8 to pass the COVID-19 relief legislation (H.R. 6201) recently approved by the House, clearing the measure for the White House without further change. H.R. 6201 provides a new business tax credit for certain employers with fewer than 500 employees to provide paid sick leave and paid family and medical leave through the end of 2020.

The Senate is discussing a range of options for an economic stimulus package to respond to the economic effects of COVID-19. The Treasury Department today released proposals for a $1 trillion stimulus plan.

The takeaway

President Trump and Congress are responding to the developing COVID-19 public health emergency and its impact on US business activity with specific proposals for economic stimulus and targeted relief. Stakeholders should engage with policymakers to ensure that issues and proposals affecting their business operations and employees are carefully considered. 

Additional information

For the IRS notice on tax payment relief, click here. For additional IRS guidance updates on coronavirus tax relief, click here

For a Joint Committee on Taxation staff technical explanation of the tax credit provisions of H.R. 6201, click here. For a copy of the final statutory text, click here

For Senator Schumer’s statement on Senate Democratic stimulus proposals, click here.

Contact us

Pam Olson

Consultant, Tax Policy Services, PwC US

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