The coronavirus pandemic turned life upside down in a matter of days at the beginning of 2020. Millions of people quickly became unemployed, schools went online, restaurants closed, and life as we formerly knew it seemed like a distant memory. Certified Public Accountant (CPA) Rachel Daddesio of Montgomery recently explained that income tax payments and refunds have been greatly disrupted as well.

“Personal finances for millions of Americans have changed drastically in just a few months,” Rachel Daddesio of Montgomery said. “Many have gone on unemployment, others have had to forego rent payments, and some have not been able to pay their income taxes.”

Rachel Daddesio of Montgomery explained that taxpayers shouldn’t panic, because a number of major updates have been made to help accommodate the needs of Americans in these trying times. Rachel Daddesio of Montgomery stated that the first major change was seen when the IRS extended the 2019 tax return deadline for filing to July 15, 2020.

Penalties are currently being accrued for those who have not paid income taxes, now that the July 15, 2020 deadline has passed. However, CPA Rachel Daddesio of Montgomery explained that taxpayers who have yet to pay income taxes can request reasonable cause relief, which could reduce or eliminate penalties. 

“The pandemic has brought about issues we’ve never seen in the past,” Rachel Daddesio of Montgomery said. “New laws have been initiated for those who have had to take days off of work due to being ill with COVID-19 or another sickness.”

Rachel Daddesio of Montgomery explained that employers with less than 500 employees must now provide paid sick leave and paid family leave to employees. Employers can also receive tax credits for the family leave or paid sick leave they’ve had to pay due to the coronavirus pandemic. Rachel Daddesio of Montgomery added that self-employed citizens can also receive a refundable income tax credit that is equivalent to the amount of paid sick or family leave they would have incurred had they worked for an employer.

“So many of the changes due to the coronavirus pandemic will be brand-new for those filing income taxes for the year 2020,” Rachel Daddesio of Montgomery said. “This will be a year in which it is especially important to hire a CPA who can help you get the tax credits you deserve due to the hardships of the pandemic.”

Rachel Daddesio of Montgomery added that the latest tax updates can be viewed on the Coronavirus Tax Relief website. She and fellow CPAs expect even more tax changes to take place before the end of 2020 and into 2021. She urges all taxpayers to seek professional assistance with these changes when filing taxes in the new year.