November 16, 2020
On November 9, 2020, the IRS (Notice 2020-75) informed it intends to issue proposed regulations supporting the use of Pass-Through Entity (PTE) SALT Workarounds. This taxpayer-friendly development would affirm that a pass-through entity’s owners or shareholders would not be limited in the amount deducted for state and local tax. Please review the article below regarding Notice 2020-75.
Learn more in our recent insight here.
May 2, 2020
The Maryland Department of Assessments and Taxation extended the 2020 deadline to submit Annual Reports, and Personal Property Tax Returns to July 15, 2020, as part of the Governor Hogan’s response to COVID-19.
March 21, 2020
The Maryland Comptroller’s Office will conform with the Internal Revenue Service’s 90-day extension of federal income tax payments from April 15 to July 15, 2020. Individual and Corporate Income taxpayers will be afforded the same relief for state Income Tax payments. No interest or penalty for late payments will be applied if 2019 tax payments are made by July 15, 2020. Taxpayers must file for an extension for the filing of Federal taxes by April 15.
Fiscal year filers with tax years ending January 1, 2020, through March 31, 2020, are also eligible for the July 15, 2020 payment extension. The due date for March quarterly estimated payments are extended to July 15, 2020.
Business-related tax filing deadlines are also extended. The June 1 extension applies to certain business returns with due dates during March, April and May 2020 for businesses filing sales and use, withholding, admissions & amusement, alcohol, tobacco, and motor fuel taxes, as well as tire recycling fee and bay restoration fee returns.
Business taxpayers who file and pay by June 1, 2020 will receive an automatic waiver of interest and penalties. Learn more here.
The Maryland Controller has implemented provisions to extend business-related tax filing deadlines. For certain business returns with due dates during March, April and May 2020, taxpayers have been provided an extension through June 1st. The extension applies to those businesses filing sales and use tax, withholding tax, and admissions & amusement tax, as well as alcohol, tobacco and motor fuel excise taxes, tire recycling fee and bay restoration fee returns. Furthermore, business taxpayers who file and pay by the extended due date will be granted a waiver of interest and penalties.
The Internal Revenue Service advised that high-deductible health plans (HDHPs) can pay for 2019 Novel Coronavirus-related testing and treatment, without jeopardizing their status. This also means that an individual with an HDHP that covers these costs may continue to contribute to a health savings account (HSA).
In Notice 2020-15 (PDF), posted on IRS.gov, the IRS said that health plans that otherwise qualify as HDHPs will not lose that status merely because they cover the cost of testing for or treatment of COVID-19 before plan deductibles have been met. The IRS also noted that, as in the past, any vaccination costs continue to count as preventive care and can be paid for by an HDHP.
This notice applies only to HSA-eligible HDHPs. Employees and other taxpayers in any other type of health plan with specific questions about their own plan and what it covers should contact their plan.
More on Taxes and the Coronavirus Pandemic.
Disclaimer: Please note this is the information that is readily available at this time, it is subject to change so please consult your Withum tax advisor.