On 19 March 2020, the US Senate Finance Committee submitted proposals for a third round of legislative measures in response to the economic impact of the coronavirus disease (COVID-19) pandemic. The Coronavirus Aid, Relief, and Economic Security (CARES) Act would introduce tax and non-tax measures for individuals and businesses. The tax measures for individuals would include tax rebates. Individuals and corporations would be permitted a deferral to 15 July of the 15 April filing date for 2019 returns as well as a deferral of estimated tax payments due from the date of enactment until 15 October 2020. A deferral of certain employer and self-employed payroll taxes is also proposed. The deferred filing dates follow recently announced measures to permit US taxpayers to defer the payments of US federal income tax. Further relief provided for businesses in the bill would include relaxations of the rules on use of net operating losses and a relaxation of the rules that limit interest deductions to a percentage of adjusted taxable income. The proposals will have to be agreed by both the House of Representatives and the Senate and may be amended as the legislative process develops.
March 20 2020