Issue Alert — Senate COVID 19 tax relief bill
Mar 20, 2020
Leading Republican Senators have released their proposal for relieving taxes on small businesses and providing cash payments to individuals. The Democrats will have a separate package with more emphasis on unemployment compensation and increasing Social Security benefits. That legislation is being filed shortly.
In the Republican bill, headed by Sen. Charles Grassley, R-Iowa, are these provisions:
- $1,200 cash payments to individuals with incomes under $75,000. These payments will be reduced for individuals with incomes up to $91,000 ($198,000 for joint taxpayers). The incomes will be based upon the 2018 tax returns.
- Tax return due dates will be moved to July 15. Estimated tax payments would be moved to October 15.
- Employers will be able to defer deposits of Social Security taxes for employees (6.2% tax on wages) and pay off that obligation in 2021 and 2022.
- More flexible allowance for using prior year losses to reduce tax obligations would allow amendment of prior year tax returns. Losses from 2018-2020 could be carried back five years to produce tax refunds upon refiling. This provision would apply both to corporations and passthrough entities (such as Subchapter S companies).
The Senate continues to work on other stimulus legislation directed at economic damage from the widespread coronavirus. The Grassley and Wyden proposals are likely to be debated today, March 20, and Saturday, March 21.
NNA supports the provisions in the Grassley bill and will await details on the Democrat's legislation, which will be managed by Sen. Ron Wyden, D-Oregon.
NNA members with comments or concerns about this legislation should contact senators IMMEDIATELY.
The contact information can be found at www.senate.gov
