U.S. Tax Filing Updates for 2019

On April 7 over 25 attendees joined AMCHAM’s Tax Committee online for a webinar on U.S. Tax Filing Updates with a special focus on tax relief options regarding covid-19. The webinar was led by Matthew Stevens, Tax Committee Co-Chair and Director of Taxation at Global U.S. Tax Plan and supported by his Committee Co-Chair colleagues Johnathan Blain of DFDL; John Andes of KPMG; and Jonathan Stuart-Smith of EY Corporate Services Limited.

Matthew began the webinar discussing general U.S. tax code updates for 2019 and then went onto discuss measure the IRS has put in place in light of covid-19. He spoke in depth on new tax relief initiatives such as the Family First Coronavirus Response Act (FFCRA), which is an Act of Congress meant to respond to the economic impacts of covid-19. He also highlighted Section 139 of the tax code, an addition after the terrorist attacks of September 11, and highlighted important exclusions for employers and employees during times of disaster. Using alcohol to make hand sanitizer has helped companies tax wise as they are now not beholden to an alcohol tax when creating these needed materials. He also noted that individuals who use the Foreign Earned Income Exclusion will not negate the economic impact payment as of right now. In order to qualify for the economic impact payment, an applicant must have a valid social security number. Matthew also stated that it would be unlikely that the economic impact payment would be remitted to a foreign bank account. He also cautioned individuals from stimulus payment scams, an unfortunate reality that normally accompanies stimulus packages.

During the question and answer section of the event, attendees asked about a wide range of tax issues. One participant asked what form was needed to qualify for the FFCRA. “There is no form currently,” said Matthew, “But you should ensure that that IRS.gov website has your current bank information in order for them to direct transfer or your address in order for them to send a check.” The presentation is available on the AMCHAM member portal.