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The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law on March 27. The $2 trillion stimulus bill was intended to provide financial relief to individuals and businesses directly affected by the coronavirus pandemic. Cash payments went to individuals below the income level listed below, along with grants to businesses. Awards of $1,200 per individual or $2,400 per couple plus an additional $500 for each qualifying child were paid. Eligible awardees were those with income below an income phase‐out based on adjusted gross income (AGI) beginning at $75,000 per individual and $150,000 per couple. Qualification was based on the individual's or couple's most recently filed income tax return. If the cash was not needed for immediate short‐term expenses, it could be used to pay down debt, invest in the stock market, or donate to a charity, local business, or a family member who “may need it during this challenging time.”

Extension of Filing Due Dates. The deadline for individuals to file 2019 income tax returns and pay balance of income tax due on April 15 was separately delayed by executive order until July 15. The CARES Act extended the deadline to make an IRA contribution to July 15. This delay plus the CARES Act grants provided immediate cash flow relief for some to take advantage of the extended IRA due date.

The Required Minimum age after which Distributions (RMD) are required was raised.

The first required minimum distribution is now required for the year in which one turns age 72 (70½ if you reach 70½ before January 1, 2020). The first payment deadline was delayed until April 1 of 2020 for anyone who turned 70½ in 2019. If you reach 70½ in 2020, you have to take your first RMD by April 1 of the year after you reach the age of 72. For all subsequent years, including the year in which you were paid the first RMD by April 1, you must take the RMD by December 31 of the year.

Mandatory withdrawals were suspended for 2020. Those who had already taken a 2020 RMD from a retirement account had 60+ days to return the money. The original withdrawal was treated as a rollover to an IRA and not to be treated as a taxable distribution.

SECURE Act. The age requirements were similarly amended by the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) effective on December 20, 2019. For defined contribution plan participants, or Individual Retirement Account (IRA) owners, who die after December 31, 2019, the SECURE Act requires the entire balance of the participant's account be distributed within 10 years. There is an exception for a surviving spouse, a child who has not reached the age of majority, a disabled or chronically ill person, or a person not more than 10 years younger than the employee or IRA account owner. The new 10‐year rule applies regardless of whether the participant dies before, on, or after, the required beginning date, now age 72. Roth IRAs do not require withdrawals until after the death of the owner.

While there is no provision that allows individuals to retroactively put a distribution back into their IRA account, an opportunity to do so was provided. Those who had already taken their 2020 RMD from an IRA had 60 days to return the money. The original withdrawal was treated as a rollover to an IRA and not to be treated as a taxable distribution.

Charitable Contributions. To incentivize additional charitable contributions to those organizations supporting and aiding those most affected by the virus, enhanced donation limitations were included:

 Up to $300 of charitable cash contributions can be taken as a deduction against adjusted gross income (AGI), regardless of whether or not the individual itemizes.

 For 2020, the 50 percent AGI limitation was eliminated, and individuals got a charitable contribution deduction for up to 100 percent of a person's AGI, for cash (not appreciated property) contributions.

Small Businesses. Small businesses have been some of the hardest hit as a result of the coronavirus pandemic. The CARES Act introduced many provisions to assist these small businesses, including:

 Employers receive a credit for their portion of the payroll tax (7.65 percent) up to $10,000 of wages per employee if the business has been impacted by COVID‐19 or if revenue is 50 percent lower than the same quarter in 2019.

 Payment of the 2020 payroll tax can be delayed; with 50 percent of the payroll tax due paid in 2021 and 50 percent in 2022.

 Economic Injury Disaster Loans (EIDL): business loans for up to $2 million at an annual interest rate of 3.75 percent, with the first payment not due for one full year. If you apply for an EIDL loan, you can also apply for a $10,000 grant toward working capital. These loans can be used to pay and retain employees, make lease payments, pay operating costs, and so forth.

 Small business owners may qualify for tax‐free loan forgiveness for the portion of the loan between March 1 and June 30. It could be forgiven if the funds are used to maintain payroll.

 The Act suspends all rules that relate to the Net Operating Losses (NOL) created under the 2017 Tax Cuts and Jobs Act (TCJA). Under the TCJA, NOLs were limited to 80 percent of taxable income and could not be carried back. NOLs can now be carried back up to five tax years with no income limit.

 Loss limitations that were imposed under the TCJA have been suspended: $250,000 for single and $500,000 for joint filings. These losses can offset nonbusiness income.

 Business interest deductibility has been increased from 30 percent of adjusted taxable income to 50 percent.

On its website, IRS has posted frequently asked questions (FAQs) on the effect of COVID‐19 on liens, levies, and other IRS collection activities.

The IRS joined the Treasure Department's efforts to ease suffering with its People First Initiative shown below. The initiative provided significant delays in tax payment due dates and IRS examination and taxpayer settlement work as described below: