December 3, 2020 - Douglas Myser

Distributions from cares plans. The IRS explained how qualified individuals can take coronavirus related loans and distributions from eligible retirement plans (Notice 2020-50). Qualified individuals receive favorable tax treatment for those distributions under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136. Distributions: A coronavirus related distribution is not subject to the Sec. 72 (t) 10% additional tax (and it is also not subject to the Sec. 72(t)(b) 25% additional tax for certain distributions from SIMPLE IRSs. These distributions are generally includible in income over a three year period and to the extent the distribution is eligible for tax free rollover treatment and is contributed to an eligible retirement plan within a three year period, will not be includible in income. Distributions from cares plans.

Plans loans: The CARES Act also increases the allowable plan loan amount under Sec. 72 (p) form $50,000 to $100,000 and permits a suspension of payments for plan loans outstanding on or after March 27, 2020, that are made to qualified individuals. Qualified Individuals: A qualified individual is defined under the CARES Act as a individual: Who 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 (CDC) (including a test authorized under the Federal Food, Drug, and Cosmetic Act).

Whose spouse or dependent (defined under Sec. 152) is diagnosed with COVID-19 by a test approved by the CDC (including a test authorized under the Federal Food, Drug, and Cosmetic Act, or Who experiences adverse financial consequences as a result of, The individual's being quarantined, being furloughed or laid off, or having work hours reduced due to COVID-19. The individual being unable to work due to lack of child care due to COVID-19, or Th enclosing or reducing hours of a business owned or operated by the individual due to COVID-19.

If the Cares Act wasn't enough to keep you from a tax debt and you have unfiled tax returns as well, call our 36 year old Tax Resolution Company for help. We are well regarded among nationally known Tax Resolution Companies. We can file all of your past due Tax Returns, then determine your Tax Relief options in the IRS and State Tax Codes, including the IRS Fresh Start Program and options not in that program. If you face the Collections Division, and have a IRS Wage Garnishment or Bank Levy, call for prompt help. Our Tax Resolution process is easy to go through. Call today for a Tax Resolution Services consultation. Nationwide services and serving Ex-Pats overseas for 36 years. 1-888-689-7861