2020

As the end of 2019 approaches, more and more information and guidance is released by the IRS relating to the Tax Cuts and Jobs Act, as well as guidance relating to a number of different areas not impacted by the landmark tax reform act. While one of the claimed benefits of tax reform was the simplification of filing and the lowering of income tax rates, there are still many steps that individuals can take that can lower their tax bills. Planning during the final weeks and months of this year involves much more–both in terms of traditional year-end strategies and strategies developed in response to developments that have taken place over the last couple of years. Here are some points to consider:

The US House of Representatives approved Families First Coronavirus Response Bill could provide $15 million to worth of tax credits for paid sick, family, and medical leave. Treasury Secretary Steven Mnuchin stated that "this bill will provide significant relief to small businesses that cannot afford the employee costs associated with coronavirus.... The bill provides a dollar for dollar reimbursement for coronavirus related sick leave costs. To protect businesses concerned about cash flow, the Treasury will use its regulatory authority to advance funds to employers in a number of ways," Furthermore he added. "Employers will be able to use cash deposited with the IRS to pay sick leave wages. Additionally, for businesses that would not have sufficient taxes to draw from, Treasury will use its regulatory authority to make advances to small businesses to cover such costs."

Note, as of March 17, 2020 this bill has not passed the US Senate.

In summary the bill provides the following tax credits: