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Showing posts from March, 2020

All IRS Employees Ordered to Evacuate

Effective March 30, 2020, the IRS issued an evacuation notice to all employees to “evacuate” from their worksite and perform work from their home during this pandemic. In doing so, the IRS invoked a provision in federal regulations that allows it to require telework-eligible employees to perform work from their home, regardless of whether they have a telework agreement in place at the time the evacuation notice is issued. According to the regulation, once that authority is invoked, employees may be assigned any work considered necessary or required to be performed during the period of evacuation, without regard to their grade, level or title.  Employees failure or refusal to perform assigned work may be subject to disciplinary action and could result in the termination of pay.

Although formal office operations are temporarily suspended, buildings will remain open and IRS space is accessible for activities such as processing mail, retrieving work materials, using office equipment, getti…

US District Court Activates COVID-19 Operations Plan

Wilson Tax Law Group
Newport Beach, CAFOR IMMEDIATE RELEASE

Monday, March 23, 2020

US District Court For Central District of California issued the following COVID-19 NOTICE:

The United States District Court for the Central District of California has activated its Continuity of Operations Plan (“COOP”), effective March 23, 2020 through and including May 1, 2020 necessary to ensure the continuous performance of essential functions and operations of the Court in light of the Coronavirus (COVID-19) pandemic.

The Court is taking the following actions to limit social interactions in its courthouses:

Access to the Courthouses

All of the Courthouses of the Central District of California will be closed to the public except for hearings on criminal duty matters, as indicated below.

All federal Pro Se Clinics in the district are closed.

Court Hearings

In civil cases, no hearings will go forward except for emergency time-sensitive matters, such as requests for temporary restraining orders and preliminary i…

IRS Payment Deadlines Extended

The Internal Revenue Service has delayed the April 15 tax payment deadline until July 15 for most individuals and businesses to relieve some of the adverse economic impacts of the novel coronavirus pandemic, the agency said Wednesday.

People and pass-through businesses with tax liabilities of less than $1 million and corporations with tax bills of up to $10 million have three additional months to file their taxes, the Internal Revenue Service said in a notice. President Donald Trump’s declaration of a national emergency earlier this month gave the U.S. Department of the Treasury authority to delay the payment deadline under Internal Revenue Code Section 7508A , according to the notice.

The extension doesn’t apply to tax filing deadlines, the IRS said. Treasury Secretary Steven Mnuchin had announced the relief Tuesday as part of the federal government’s plans to grapple with the economic fallout from COVID-19, the disease caused by the virus.

If you or your business have a tax concern, co…

California Tax Relief Due to Coronavirus

On March 12, the Governor of California declared tax relief that delays the deadline for state tax filing by 60 days for individuals and businesses unable to file on time based on compliance with public health requirements related to COVID-19 filings.

This relief follows the Governor's March 5th declaration of a State of Emergency to make additional resources available, formalize emergency actions already underway across multiple state agencies and departments, and help the state prepare for broader spread of COVID-19. (www.gov.ca.gov/wp-content/uploads/2020/03/3.4.20-Coronavirus-SOE-Proclamation.pdf)

The Governor's March 5th declaration states that employers statewide directly affected by the new coronavirus (COVID-19) may request up to a 60-day extension of time from the EDD to file their state payroll reports and/or deposit payroll taxes without penalty or interest. Written requests for extension must be received within 60 days of the original delinquent date of the payment o…

Possible US Tax Relief Due to Coronavirus

Reports have emerged that White House officials are considering deferring taxes for the cruise, travel and airline industries to stem the economic fallout from the outbreak. The tax deferrals for the travel industry are being considered as airlines cut back on routes and warn about declining ticket sales.
Hotel chains are struggling with vacancies in Asia and are bracing for similar waves in the United States. Business travel is falling, and trade shows, music festivals and conventions are being canceled from San Francisco to Chicago to Austin to Miami. Families and college students are reconsidering spring break excursions and distant summer plans.


Other countries have already enacted tax relief for their hardest-hit industries. On Sunday, Italy announced a tax credit for any company that has seen revenue decline by more than a quarter. That is on top of Italy’s announcement last month that companies and individuals in areas affected by the “epidemiological emergency” would be granted …

Tax Flash - IRS Ramps Up Audits of High Earners

The IRS is planning to audit more high-income taxpayers, Treasury Secretary Steven Mnuchin told House lawmakers this week. The plan comes on the heels of recent reports that the IRS has conducted more audits of lower-income taxpayers largely because of the increased complexity and resources needed for high-income examinations. In doing so, the Trump administration’s FY 2021 budget request proposes $12 billion in base funding for the IRS, which would provide an increase from currently enacted levels of $11.5 billion.

If you or your business have legal questions or concerns regarding a state or federal tax audit, the professionals at Wilson Tax Law Group are available to assist and can be reached at 949-397-2292. Wilson Tax Law has offices in Newport Beach and Yorba Linda, California. Wilson Tax Law assists clients throughout California, the United States and worldwide.

Feds Gut Alimony Deduction but State of California Still Allows

With respect to payments required under divorce or separation instruments that is executed after Dec. 31, 2018, the Tax Cut and Jobs Act (TCJA) eliminates the deduction for alimony payments and recipients of affected alimony payments will no longer have to include them in taxable income. These changes solely apply to federal tax returns.
California law does not conform to changes made by the TCJA regarding alimony and separate maintenance payments made under any divorce or separation agreement executed after December 31, 2018, or executed on or before December 31, 2018, and modified after that date (If the modification expressly provides that the amendments apply). Thus, deduction for alimony payments are still deductible and recipients of alimony payments are still required to include them in taxable income under California law.

If you or your business have legal questions or concerns regarding your state or federal tax filings, the professionals atWilson Tax Law Group are available to…