Coronavirus (COVID-19) Tax Relief


The Treasury Department and the IRS announce tax relief due to the Coronavirus (COVID-19) situation.

Tax guidance related to the Coronavirus (COVID-19) will be updated here as new information is made available through the U.S. Treasury Department and the IRS. You can also visit the Coronavirus Tax Relief and Economic Impact Payments page on IRS.gov.

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How Do I Get An Economic Impact Payment?

STEP 1: Determine your eligibility first

STEP 2: Check to see if the IRS has already issued or scheduled your payment by visiting the IRS.gov website and using the Get My Payment tool. You can use the tool to track the status of any Economic Impact Payment to which you are entitled once the IRS has processed your return.
  • To help protect against fraud, the tool does not allow taxpayers to change bank account information already on file with the IRS nor does it allow taxpayers to change their address.

STEP 3: If your Economic Impact Payment has not been issued continue using the tool below.


The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) legislation includes the Economic Impact Payments distributed by the Internal Revenue Service.

WHO IS ELIGIBLE

Eligible taxpayers may qualify for up to $1,200 each, or up to $2,400 if married filing jointly, and up to $500 for each qualifying child.

A qualifying child is one claimed as a dependent on the last filed tax return, tax year 2019 or tax year 2018, and who won't reach age 17 by Dec. 31, 2020. This is the same criteria used to determine eligibility for the Child Tax Credit.

The gross amount of the payment is reduced by $5 for each $100 earned above $75,000 for single filers, $112,500 for head of household filers and $150,000 for married filing joint filers. Single filers with income exceeding $99,000, $136,500 for head of household filers and $198,000 for joint filers with no qualifying children aren't eligible and won't receive payments.

NON-FILERS

If you’re a U.S. citizen with income less than $12,000 ($24,000 for married couples) and aren't generally required to file a tax return with the IRS, you can Non-Filers: Enter Payment Info Here tool to provide the IRS with your information needed to determine your eligibility and payment amount.

Alert: Taxpayers that are not normally required to file a tax return (Non-filers) only have until Nov. 21, 2020, to use the Non-filers: Enter Your Payment Info Here tool to claim the Economic Impact Payment and receive it this year. See the scenarios for using the Non-Filers: Enter Payment Info Here tool, before using the tool and the Taxpayers Not Normally Required To File A Tax Return section below for more information. Taxpayers that are normally required to file a return shouldn’t use this tool; instead, please file your tax return as required.

Incarcerated individuals, who qualify for the economic impact payment (see WHO IS ELIGIBLE above), and who are not normally required to file a tax return, can use the Non-filers: Enter Your Payment Info Here tool by 3 p.m. Eastern Time on Nov. 21, 2020 to receive it this year. This change is based on a recent court ruling (See FAQ#14, updated Oct. 19, 2020) reversing a prior IRS decision that incarcerated individuals were not eligible to receive an economic impact payment. These taxpayers can also choose to File a Simplified Paper Tax Return, instead of using the tool, by the court ordered date of Nov. 4, 2020. Please be aware that the litigation is ongoing.  Affected individuals should monitor the IRS’s Economic Impact Payment Information Center for updates.

WHO ISN’T ELIGIBLE

Taxpayers whose adjusted gross income exceeds certain threshold amounts aren’t eligible.

Who Isn't Eligible

FILING STATUS ADJUSTED GROSS INCOME
 Single or married filing separate
(with no qualifying child)
 $99,000+
 Head of Household  $136,500+
 Married filing joint
(with no qualifying child)
 $198,000+


Also, you may not be eligible if:

  • You can be claimed as a dependent on someone else’s return. For example, this would include a child, student or older dependent who can be claimed on a parent’s return.
  • You don't have a valid Social Security number. A taxpayer with an individual taxpayer identification number (ITIN) doesn't qualify.
  • You are a nonresident alien.
  • You filed Form 1040-NR or Form 1040NR-EZ, Form 1040-PR or Form 1040-SS for 2019.


FILING A TAX RETURN

In general, taxpayers who already filed tax returns, either in 2018 and 2019, will automatically get their payment, and with respect to the payment only, do not need to do anything further. If you haven’t filed your 2019 tax return, you should file it when you’re able. The IRS will use information from your 2018 tax return to calculate your payment amount. For more information on when your 2019 tax return is due, see Filing and Payment Relief below.

Taxpayers who receive Social Security retirement or Railroad Retirement benefits, who aren’t typically required to file tax returns, will not need to file to receive a payment. The IRS will use the information on the Form SSA-1099 and Form RRB-1099 to generate Economic Impact Payments of $1,200 to these individuals even if they didn’t file tax returns in 2018 or 2019. Recipients will receive these payments as a direct deposit or by paper check, just as they would normally receive their benefits. Social Security Disability Insurance (SSDI) recipients are also part of this group who don't need to take action. But see the Taxpayers Not Normally Required to File A Tax Return section below if you are one of the taxpayers described who normally don’t have to file, but you have qualifying children under age 17.


TAXPAYERS NOT NORMALLY REQUIRED TO FILE A TAX RETURN

Some taxpayers who typically don’t file returns will need to submit a simple tax return to receive the Economic Impact Payment.

If you’re a U.S. citizen with gross income less than $12,200 ($24,000 for married couples) and aren't generally required to file a tax return with the IRS, you can use the ‘Non-Filers: Enter Your Payment Info Here tool to provide the IRS with information needed to determine your eligibility and payment amount.

You should complete this tool as quickly as possible, so the IRS has the information it needs to issue your payment. There is no fee to use this tool.

Special note: Taxpayers in these groups, who have qualifying children under age 17, can use this tool to claim the $500 payment per qualifying child. Otherwise, you may not be able to claim qualifying children until or unless you file for tax year 2020.

HOW DO I GET AN ECONOMIC IMPACT PAYMENT?

See our How Do I Get An Economic Impact Payment? section above, watch the video and use our tool to help you decide what, if any, steps you need to take.  

PAYMENT DISTRIBUTION - WHEN WILL I GET MY PAYMENT?

The IRS began issuing payments to taxpayers who already had existing direct deposit information on file the week of April 13, 2020. In certain instances, payments will continue to be issued over the coming weeks and in others, taxpayers will be required to claim them on their 2020 tax returns.

This includes taxpayers who filed tax returns in 2018 and 2019 and most seniors and retirees.
Use the "Get My Payment" application to:

  • Check your payment status;
  • Confirm your payment type: direct deposit, Debit card or paper check, and
  • Update direct deposit bank account information in some situations

Note: You can’t use the Get My Payment application to update your direct deposit bank account information after an Economic Impact Payment is scheduled for delivery. To help protect against potential fraud, the application also doesn’t allow you to change direct deposit bank account information already on file with the IRS. However, if you didn’t use direct deposit on your last tax return to receive a refund, or when your direct deposit information was inaccurate and resulted in a paper refund check, you will be able to provide that information and speed up payment with a deposit into your bank account.

Special note: If you have past due child support obligations, your payment will be sent to the agency in control of those accounts instead of refunded directly to you. All other debts to which the IRS normally applies refunds won’t be paid using your Economic Impact Payment. For more information on regular tax refund offsets, see our Refund Offset page.

PAYMENT LETTERS INSTRUCTIONS TO FOLLOW, IF YOU DON’T RECEIVE YOUR ECONOMIC IMPACT PAYMENT

For security reasons, a letter (Notice 1444, Your Economic Impact Payment) about the Economic Impact Payment is sent to each taxpayer’s last known address within 15 days after the payment is paid. This letter provides information on the payment amount and how it was made.

Reminder: Be sure to keep your copy of Notice 1444 for your records.

If you did not receive this payment, visit the IRS’s EIP Frequently Asked Questions and Answers, under the section titled Payment Issued but Lost, Stolen, Destroyed or Not Received and follow the applicable instructions.

If you’re unsure if you received a legitimate letter, see the IRS’s Dirty Dozen announcement or our TAS Tax Tip: Avoid Scams Offering Economic Impact Payments to help you protect yourself against scam artists.

MORE INFORMATION

The IRS’s Get My Payment application, will help you check your payment status, confirm your payment type, and update your bank info (in limited situations). The Get My Payment application won’t, however, allow you to change your address. To change your address:

  • If you haven’t filed your 2019 tax return, enter your new address on your tax return when you file. The IRS updates its records when your return processes. File electronically to ensure your return will be processed more quickly.

  • If you’ve filed your 2019 tax return and you didn’t receive a direct deposit refund, your payment will be mailed to the address the IRS has on file for you. This is generally the address on your most recent tax return or as updated through the United States Postal Service (USPS). If you’ve moved since filing your 2019 tax return, you should notify the IRS by filing Form 8822, Change of Address. You should also notify the Post Office serving your old address.

  • Payment received by check - Lost, Stolen or Destroyed. How do I get a new one?  
    If you received your payment by check and it was either lost, stolen, or destroyed, you should request a payment trace. See Frequently Asked Question, Payment Issued but Lost, Stolen, Destroyed or Not Received for more information on how to request a payment trace.

  • Economic Impact Payments Belong to Recipient, Not Nursing Homes or Care Facilities
    The IRS issued a reminder following concerns that people and businesses may be taking advantage of vulnerable populations who received the Economic Impact Payments.

Visit the IRS Economic Impact Payment Information Center for more details on Economic Impact Payment eligibility. Also see Get My Payment Frequently Asked Questions (tool) and Economic Impact Payment Frequently Asked Questions.

The IRS postponed certain compliance actions under a program titled “IRS People First Initiative,” effective April 1, and that ran through July 15 initially, in an effort to help taxpayers facing tax challenges in light of the Coronavirus (COVID-19) pandemic. The changes included issues ranging from postponing certain payments related to Installment Agreements and Offers in Compromise to collection procedures and limiting certain enforcement actions.

Now that the July 15th date has passed, IRS is posting updates for its  policies in the following key tax areas:

Visit www.irs.gov/coronavirus and see the IRS Operations During COVID-19: Mission-critical functions continue page for more details about what current actions the IRS is taking while it begins to resume agency operations.

The Treasury Department and the IRS previously announced tax relief due to the Coronavirus (COVID-19). As a result, any taxpayer with a Federal income tax payment or Federal income tax return due normally due on or after April 1, 2020 and before July 15, 2020, had more time to file and pay. The due date for filing Federal income tax returns and making Federal income tax payments was automatically postponed to July 15, 2020.

The relief applied to all taxpayers, not just individuals. This means anyone, including Americans who live and work abroad, had until July 15 to file their 2019 federal income tax return and pay any tax due.

Extension forms (Form 4868 or Form 7004) were not required to be filed for Federal income tax returns or payment of Federal income tax to be able to file and pay by July 15, 2020, and you did not need to contact the IRS to qualify. If you couln't file by July 15, 2020, individuals did need to request an extension by filing Form 4868. Businesses, including trusts, must file Form 7004. To avoid interest and penalties when filing your tax return after July 15, 2020, pay the tax you estimate as due with your extension request.

See our TAS Tax Tip: Important Reminders for July 15 - Filing and Paying Taxes for more information.

Reminder: If you did request an extension to file beyond July 15, 2020, please remember you must file your return by October 15, 2020. Also, all estimated income tax payments due on or after April 1, 2020, and before July 15, 2020 were postponed to July 15, 2020 as well. First quarter 2020 estimated income tax payments due April 15, 2020, and second quarter 2020 estimated income tax payments due June 15, 2020, were both postponed to July 15, 2020.

Alert: If you missed the July 15th due date: visit What someone should do if they missed the July 15 deadline to file and pay.

For the latest information, visit Filing and Payment Deadlines Questions and Answers and Coronavirus Tax Relief and Economic Impact Payments for Individuals and Families.

Need employment tax relief?

Try our COVID-19 Business Tax Relief Tool now. All you need to do is answer a few questions. It should take less than 5 minutes.

Biz Relief Tool Image

Based on your answers, the tool will:

  • Let you know if you may be likely to qualify for any of the available tax relief options.
  • Link you to more information that will allow you to understand how to take advantage of those options.

Or you can simply read the information below about the available tax relief options.

Please help businesses affected by the COVID-19 pandemic understand tax relief options to stay in business by sharing this flyer (PDF), the link to this page or the tool’s direct link, via your website, newsletter, email, or social media. Read our TAS Tax Tip: COVID-19 Business Tax Relief Tool for Businesses and Tax-Exempt Entities for more information about this tool, how it works and more.

Employee Retention Credit

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), enacted on March 27, 2020, is designed to encourage eligible employers to keep employees on their payroll, despite experiencing financial hardship related to the coronavirus pandemic, with an employee retention tax credit (Employee Retention Credit). The refundable credit is 50% of up to $10,000 in wages paid by an eligible employer to employees after March 12, 2020, and before January 1, 2021. For more information, see Employee Retention CreditCoronavirus Tax Relief for Businesses and Tax-Exempt Entities, Employee Retention Credit FAQs and Deferral of employment tax deposits and payments through December 31, 2020.


Paid Leave for Workers and Tax Credits for Small- and Mid-Size Businesses

Under the Families First Coronavirus Response Act (FFCRA), businesses can claim two new refundable payroll tax credits. The paid sick leave credit and paid family leave credit are available for eligible employers who pay qualified sick leave wages and/or qualified family leave wages from April 1, 2020, through December 31, 2020, and who have fewer than 500 employees.


Paid sick leave for workers:
An employer can allow a full-time employee up to 80 hours of paid sick leave. A part-time employee may be allowed paid sick leave for the number of hours the employee works over a two-week period, if the employee is unable to work or telework because they are: 

  • Subject to COVID-19 quarantine or isolation order.
  • Advised to self-quarantine due to COVID-19.
  • Experiencing COVID-19 symptoms and are seeking a medical diagnosis.
  • Caring for a person subject quarantine orders related to COVID-19 or has been advised to self-quarantine.
  • Caring for a child whose school or place of care is closed or unavailable due to COVID-19.

For an employee who is unable to work because of Coronavirus quarantine or self-quarantine or has Coronavirus symptoms and is seeking a medical diagnosis, an eligible employer may receive a refundable sick leave credit.  Employers pay the benefits at 100% of the employee's regular pay up to $511 per day and $5,110 in total for the care of the employee's own health.

For the care of an employee's family members, employers pay benefits at two-thirds of the employee's regular pay up to $200 per day and $2,000 total.


Paid family leave to care for child:
An employer can give up to 10 weeks of paid family leave at two-thirds of an employee’s regular pay for up to $200 per day and $10,000 total if the employee is unable to work or telework because they're caring for a child whose:

  • School or place of care is closed due to COVID-19
  • Childcare provider is unavailable due to COVID-19

With two weeks of paid sick leave and 10 weeks of paid family leave combined, an employee could receive up to a total of 12 weeks up to $12,000 of paid leave to care for a child. For more information, see paid leave for employeesNew credits fund employers for Coronavirus-related paid leave and Tax Credits for Required Paid Leave FAQs.

Eligible employers are entitled to an additional tax credit determined based on costs to maintain health insurance coverage for the eligible employee during the leave period.

Important note: An employer cannot use the same wages for the Employee Retention Credit and the credits for paid sick and family leave.


How do I receive my credit?

You can get immediate access to the credits by reducing the employment tax deposits you are otherwise required to make. If your employment tax deposits are not enough to cover the credit, you can request advance payment from the IRS by faxing your completed Form 7200, Advance Payment of Employer Credits Due to COVID-19 to 855-248-0552. Read the instructions carefully and take time when completing this form. IRS has put together a list of common errors to avoid when filing Form 7200. For more information call 833-551-3588.

If you fully reduce your required employment tax deposits otherwise due on wages paid in the same calendar quarter to employees in anticipation of receiving the credits, and you have not paid qualified leave wages in excess of this amount, you should not file Form 7200. If you file Form 7200, you will need to reconcile this advance credit and deposits with the qualified leave wages on Form 941 (or other applicable federal employment tax return such as Form 944 or Form CT-1), and you may have an underpayment of federal employment taxes for the quarter.

Note that a Form 7200 requesting an advance of less than $25 will not be processed. Employers can claim credits of less than $25 on Form 941.


Some Employers Received Notice of Failure to Deposit Penalty after Claiming New Tax Credits

Although the IRS has taken steps to implement rules that prevent the failure to deposit penalty from incurring on employers reducing their deposits in anticipation of claiming the Sick and Family Leave Credits or Employee Retention Credit, some employers may still have inadvertently received notice of the penalty.

No additional actions are needed at this time. The IRS is working to identify these employer accounts and correct them as soon as possible. To avoid receiving a penalty notice in the future, check IRS.gov/form941 for guidance on properly reporting liabilities when reducing deposits.


Delay processing Form 7200

For those experiencing a delay with processing your Form 7200, you will receive one of the following letters from the IRS:

  • Letter 6312, if the IRS either rejected Form 7200 or made a change to the requested amount of advance payment due to a computation error. The letter will explain the reason for the rejection or, if the amount is adjusted, the new payment amount will be listed on the letter.
  • Letter 6313, if the IRS needs written verification that the address listed on your Form 7200 is the current mailing address for your business. The IRS will not process Form 7200 or change the last known address until the verification is provided.


Repaying excess employment tax credits, when necessary

The IRS recently provided guidance on recapturing excess employment tax credits where any refund of these credits listed above were paid to a taxpayer that exceeds the amount the taxpayer is allowed. This situation is considered an erroneous refund for which the IRS has been authorized to seek repayment. See the temporary regulation and a proposed regulation for how to reconcile advance payments of refundable employment tax credits and recapture the benefit of these credits when necessary. 

For more information on the employer credits overall, see Employer Tax Credits and Employer Credit Flow Chart.


Deferral of Certain Employee Social Security Tax Withholding
and Payment

The President of the United States issued a Presidential Memorandum directing the Secretary of the Treasury to use his authority pursuant to section 7508A of the Internal Revenue Code to defer the withholding, deposit, and payment of certain payroll tax obligations.  As a result, the Department of Treasury and the Internal Revenue Service issued guidance allowing employers to defer withholding and payment of the employee’s portion of the Social Security tax, if the employee's wages or compensation are below a certain amount. The guidance makes relief available for employers and generally applies to wages or compensation paid starting September 1, 2020, through December 31, 2020.

The employee Social Security tax deferral may apply to payments of taxable wages or compensation to an employee that are less than $4,000 during a bi-weekly pay period, with each pay period considered separately. No deferral is available for any payment to an employee of taxable wages or compensation of $4,000 or above for a bi-weekly pay period.


Payment of Deferred Applicable Taxes

An employer must withhold and pay the total applicable taxes that were deferred under this guidance, ratably from employee wages and compensation paid between January 1, 2021 and April 30, 2021. If not, interest, penalties, and additions to tax will begin to accrue on May 1, 2021, with respect to any unpaid applicable taxes. If necessary, the employer may make arrangements to otherwise collect the total applicable taxes from the employee.

For more information see:


Business Net Operating Losses (NOLs)


For information about business-related Net Operating Losses, see the section below titled Net Operating Losses (NOLs).


Filing and Payment Deadlines

2019 tax returns and tax payments, as well as your first two 2020 estimated tax payments, were due on Wednesday, July 15. The July 15 due date generally applied to any tax return or tax payment deadline falling on or after April 1, 2020, and before July 15, 2020. No late-filing penalty, late-payment penalty or interest will be due for payments made by July 15. For a complete list of Forms with a Deadline of July 15, 2020, see filing and payment deadlines.  

The CARES Act allows employers to defer the deposit and payment of the employer's share of social security taxes and self-employed individuals to defer payment of certain self-employment taxes. The deferral applies to deposits and payments of the employer's share of social security tax that would otherwise be required to be made during the period beginning on March 27, 2020 and ending December 31, 2020. The deferral also applies to certain railroad retirement taxes.


Deferral of Certain Employee Social Security Tax Withholding
and Payment

The President of the United States issued a Presidential Memorandum directing the Secretary of the Treasury to use his authority pursuant to section 7508A of the Internal Revenue Code to defer the withholding, deposit, and payment of certain payroll tax obligations.  As a result, the Department of Treasury and the Internal Revenue Service issued guidance allowing employers to defer withholding and payment of the employee’s portion of the Social Security tax if the employee's wages or compensation are below a certain amount.

The employee Social Security tax deferral may apply to payments of taxable wages or compensation to an employee that are less than $4,000 during a bi-weekly pay period, with each pay period considered separately. No deferral is available for any payment to an employee of taxable wages or compensation of $4,000 or above for a bi-weekly pay period.


Payment of Deferred Applicable Taxes

An employer must withhold and pay the total applicable taxes that were deferred under this guidance, ratably from employee wages and compensation paid between January 1, 2021 and April 30, 2021. If not, interest, penalties, and additions to tax will begin to accrue on May 1, 2021, with respect to any unpaid applicable taxes. If necessary, the employer may make arrangements to otherwise collect the total applicable taxes from the employee.

So individual taxpayers who work for an employer that defers tax withholding between September 1, 2020, through December 31, 2020, may see increased withholding amounts taken from paychecks between January 1, 2021 and April 30, 2021, or receive some other type of request to repay those deferred amounts in 2021.

For more information see:


Other Payment Options

Owe but can't pay, or have questions about your payments? Call the number on your notice but due to limited staffing you may experience a long wait time on the phone. IRS.gov offers several convenient ways to make one time or recurring electronic tax payments.

If you need to resume payments on a payment agreement with the IRS, including Installment Agreements, Offers in Compromise, and Private Debt Collection program payments, see Taxpayers need to resume payments by July 15.

For more information, see Get answers to your questions on the filing and payment deadline.


More Resources

For more information, see Coronavirus Tax Relief for Businesses and Tax-Exempt Entities on IRS.gov. You can also visit the Department of Labor’s website, Families First Coronavirus Response Act: Questions and Answers.

COVID Relief for Taxpayers Claiming Net Operating Losses (NOLs)

Revenue Procedure 2020-24 provides guidance to taxpayers with net operating losses (NOLs) that are carried back under the Coronavirus Aid, Relief, and Economic Security (CARES) Act by providing procedures for:

  • waiving the carryback period in the case of a net operating loss arising in a taxable year beginning after Dec. 31, 2017, and before Jan. 1, 2021,

  • disregarding certain amounts of foreign income subject to transition tax that would normally have been included as income during the five-year carryback period, and

  • waiving a carryback period, reducing a carryback period, or revoking an election to waive a carryback period for a taxable year that began before Jan. 1, 2018, and ended after Dec. 31, 2017.

In Notice 2020-26, the IRS grants a six-month extension of time to file Form 1045, Application for Tentative Refund, or Form 1139, Corporation Application for Tentative Refund, as applicable, with respect to the carryback of a NOL that arose in any taxable year that began during calendar year 2018 and that ended on or before June 30, 2019. Individuals, trusts, and estates would file Form 1045, and corporations would file Form 1139.

COVID Relief for Partnerships with NOLs. Revenue Procedure 2020-23 allows eligible partnerships to file amended partnership returns using a Form 1065, U.S. Return of Partnership Income, by checking the “Amended Return” box and issuing amended Schedules K-1, Partner’s Share of Income, Deductions, Credits, to each of its partners. Partnerships filing these amended returns should write “FILED PURSUANT TO REV PROC 2020-23” at the top of the amended return.

Special temporary procedures for submission of certain NOL forms

In response to the COVID-19 pandemic and solely to implement the provisions of the CARES Act, starting on April 17, 2020 and until further notice, the IRS is implementing temporary procedures for the fax submission of certain Forms 1139 and Forms 1045.

For more information, see the IRS’s frequently asked questions and answers at "Temporary procedures to fax certain Forms 1139 and 1045 due to COVID-19."

The Coronavirus Aid, Relief, and Economic Security Act, Pub. L. No. 116-136 (CARES Act), provides relief to eligible individuals taking withdrawals or loans from qualified employer retirement plans and Individual Retirement Arrangements (IRAs).

Coronavirus-related withdrawals and loans

Individuals may be eligible for coronavirus-related relief on withdrawals from qualified employer retirement plans or IRAs and on loans from qualified employer retirement plans. The relief only applies to certain withdrawals and loans made to the following individuals:

  • The individual is diagnosed with the virus SARS-CoV-2 or with coronavirus disease 2019 (COVID-19) by a test approved by the Centers for Disease Control and Prevention;
  • The individual’s spouse or dependent is diagnosed with such virus or disease by such a test;
  • The individual experiences adverse financial consequences as a result of:
    • being quarantined, being furloughed or laid off, or having work hours reduced due to such virus or disease;
    • being unable to work due to lack of childcare due to such virus or disease; or
    • closing or reducing hours of a business owned or operated by the individual due to such virus or disease;
  • Other categories of individuals that that IRS may provide in future guidance.

Withdrawals: For withdrawals made in 2020 before December 31, 2020, eligible individuals may be able to request coronavirus-related withdrawals of up to an aggregate limit of $100,000 from their qualified employer retirement plans and IRAs. These coronavirus-related withdrawals:

  • Are not subject to the 10-percent additional tax on early distributions that would otherwise apply to most withdrawals before reaching age 59½.
  • May be repaid to a qualified employer plan or IRA within three years.
  • The tax due on withdrawals can be paid over three years.

Loans: Eligible individuals may also, until September 22, 2020, be able to request a plan loan in an increased amount from their qualified employer retirement plan account, if their plan allows. In general, the CARES Act increased the Internal Revenue Code limit on plan loans to eligible individuals from the lesser of $50,000 or 50 percent of the vested account balance to the lesser of $100,000 or 100% of the vested account balance. Loans are not available from an IRA.

For eligible individuals, plan administrators can suspend, for up to one year, plan loan repayments due from March 27, 2020 to December 31, 2020. A suspended loan is subject to interest during the suspension period, and the term of the loan may be extended to account for the suspension period.

Taxpayers should check with their plan administrator to see if their plan offers these expanded loan options and for more details about these options.

Seniors, retirees not required to take distributions from retirement accounts this year under new law

The CARES Act, waives required minimum distributions (RMDs) during 2020 for IRAs and retirement plans, including beneficiaries with inherited accounts. This waiver includes RMDs for individuals who turned age 70 ½ in 2019 and took their first RMD in 2020. Roth IRAs do not require withdrawals until after the death of the owner.

If an individual has already taken an RMD in 2020, the individual will have the option of returning the distribution to their account or other qualified plan. RMDs taken in 2020 are considered eligible for rollover and can be rolled over to another IRA, another qualified retirement plan, or returned to the original plan.

An IRA owner or beneficiary who has already received an RMD in 2020 can also repay the distribution to the distributing IRA no later than Aug. 31, 2020, to avoid paying taxes on that distribution.

IRS Notice 2020-51 (PDF) also provides that the one rollover per 12-month period limitation and the restriction on rollovers to inherited IRAs do not apply to this repayment.

The CARES Act provisions apply to most retirement plans, profit sharing plans and other defined contribution plans. The RMD suspension does not apply to qualified defined benefit plans.

For more information visit:

See also the Individual Retirement Accounts (IRAs) and workplace-based retirement plans section of the Filing and Payment Deadlines Questions and Answers, or Coronavirus Tax Relief and Economic Impact Payments.

Economic Impact Payment

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) legislation includes the Economic Impact Payments distributed by the IRS. Information in the Economic Impact Payment section above, includes information for international situations.

See also, the IRS’s Economic Impact Payment Information Center FAQs for specifics for people living in U.S. Territories and a special exception for U.S. Armed Forces members.

Filing and Payment Relief

The Treasury Department and the IRS announced new tax relief due to the Coronavirus (COVID-19). U.S. taxpayers who live and work abroad have until July 15, 2020 to file federal income tax returns and pay their federal income tax. For more details, see the information under the Filing and Payment section above. If you need additional information about your tax responsibilities or and return filing requirements, see our Tax Responsibilities of U.S. Citizens and Resident Aliens Living Abroad, page.

Foreign Account Tax Compliance Act

The IRS provides an extension of time, for a Reporting Model 2 Foreign Financial Institution (FFI) or a Participating FFI, to file the Foreign Account Tax Compliance Act (FATCA) Report (Form 8966) to the IRS. The filing deadline for the FATCA Report was extended from March 31, 2020 to July 15, 2020. Form 8809-I, Application for Extension of Time to File FATCA Form 8966, will not be required for this extension.

For more information, see the "Reporting" category on the FATCA – FAQs General page.

Net Operating Loss

The IRS issued temporary instructions to fax certain Forms 1139, Corporation Application for Tentative Refund, and 1045, Application for Tentative Refund, due to COVID-19, that allow for digital transmission of these forms. See the news release for details about eligible refund claims. For more details about modifications to net operating loss rules made by the CARES Act, see the information under the Net Operating Loss section above.

Passport Certifications

The IRS suspended new certifications to the Department of State for taxpayers who have "seriously delinquent tax debt" through July 15, 2020. Those taxpayers were encouraged to submit a request for an Installment Agreement or, if applicable, an Offer in Compromise during this period to avoid certification. Upon the IRS certification of seriously delinquent tax debt, the Department of State generally will not issue a passport and may deny the taxpayer’s passport application or revoke his or her current passport.

For a detailed information about revocation or denial of passport in case of certain unpaid taxes, see Revocation or Denial of Passport in Case of Certain Unpaid Taxes.  For more information and how to request decertification, see the Frequently Asked Questions and Answers.

TAS OPERATIONAL STATUS

The Taxpayer Advocate Service (TAS) remains committed to assisting taxpayers and championing their taxpayer rights. TAS will continue to offer help to qualified taxpayers. You can also visit our TAS Tax Tips and Get Help center for help with common tax questions.

Check this page frequently for updates.

Current Status

Taxpayer Advocate Service (TAS) employees are teleworking, sheltering at home and working to serve our taxpayers. We are experiencing delays and interruptions in working cases due to IRS services being limited. These limited services are also causing a high call volume to our organization resulting in delays in our response times. Please be patient.

For questions about Economic Impact Payments, please go to the IRS Coronavirus Relief site, call the EIP help line at 800-919-9835, or visit our TAS Coronavirus (COVID-19) Tax Relief site first. However, beginning August 10th, TAS can assist with correcting EIP Amounts for limited groups of taxpayers.

IRS OPERATIONAL STATUS

To protect the public and employees, and in compliance with orders of local health authorities around the country, certain IRS services are extremely limited or suspended until further notice.

To get the latest updates on the status of IRS Operations and see details about what the IRS is or is not currently working, visit IRS Operations During COVID-19: Mission-critical functions continue and see also the People First Initiative – Providing Relief to Taxpayers Frequently Asked Questions and Answers page. We recommend checking this IRS page frequently for updates.

Visit the Coronavirus (COVID-19) TAS Customer Case Related Alerts page for status updates on important TAS case-related processes impacted by the coronavirus (COVID-19) pandemic.

Refunds

If you are expecting a refund, based on the amount of taxes you paid last year, you should file your 2019 tax return as soon as possible. If you have questions about your tax refund status after you've filed, visit TAS’s refund information hub for guidance on checking your refund status.

Tax Filing

Free tax return filing options are available to help you file your return timely. You can also download essential tax forms you’ll need to submit to the IRS.

Tax Balance Due 

If you owe a federal tax balance due and cannot pay it in full by the postponed July 15th due date, pay as much as you can, as interest, penalties, and additions to tax will begin to accrue on July 16, 2020. Take a look at the tax payment options available for additional help .

TAS Resources

Last modified October 26, 2020