COVID-19 Legislative Action – Part 2

COVID-19 Legislative Action – Part 2 Episode 67 - As a result of the economic impact that the novel coronavirus has had on this country, on March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief and Economic Security (“CARES”) Act. This far-reaching legislation stands as the largest emergency aid package in U.S. history. Here’s a summary of the CARES Act provisions. COVID-19 Legislative Action - Part 1 Part 2 Transcript As a result of the economic impact that the novel coronavirus has had on this country, on March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief and Economic Security (“CARES”) Act. This far-reaching legislation stands as the largest emergency aid package in U.S. history. It represents a massive financial injection into our economy with provisions aimed at helping American workers, small businesses and industries struggling with the economic disruption. Prior to the CARES Act, the federal government had already enacted a series of laws to stimulate the economy and to increase efforts to fight the virus. The Coronavirus Preparedness and Response Supplemental Appropriations Act was signed into law on March 6, 2020, and the Families First Coronavirus Response Act was enacted on March 18. The IRS also published Notice 2020-18 to confirm an announcement that U.S. Treasury Department Secretary Steven Mnuchin made over a week ago extending the income tax filing and payment deadline for tax year 2019 from April 15 to July 15. For taxpayers expecting a refund, the IRS has requested that tax returns be filed as soon as possible since refunds are still being issued within a targeted 21-day time frame. Also, Forms 4686 and 7004, which are the forms typically required to request an extension to file depending upon the circumstances, are not required. Extension of the tax-filing deadline also extends the time to make IRA contributions for 2019 to July 15. Please check our website for Part 1 summarizing the two bills. CARES Act The CARES Act is a historic bill featuring the largest economic stimulus package in American history, amounting to approximately $2.2 trillion in aid. After much bi-partisan negotiation between the House of Representatives, Senate, and the Presidential Administration, the bill passed the Senate unanimously on March 25. The House endured a bit of last-minute drama as Representative Thomas Massie of Kentucky forced members to return to Washington, D.C., for a procedural vote. Ultimately, the bill passed the House by voice vote on March 27, and President Trump quickly signed it into law. The following is a brief summary of some of the provisions of the law impacting our clients and policyholders. Note that because of the speed in which this legislation was passed through Congress and signed by the President, there are some provisions that will need clarification and additional guidance by the Treasury Department and the IRS. Assistance to Individuals and Families 1. Unemployment Assistance. Unemployment benefits will be expanded to increase the maximum benefit to $600 per week for up to 4 months. In addition,