A Tax Filing Deadline Extension and HDHP Treatments

Posted on Wednesday, March 18, 2020

President Trump announced that the April 15 tax filing and tax paying deadline will be extended for "certain" taxpayers due to the coronavirus (COVID-19).

On March 11, Treasury Sec. Steven Mnuchin said the payment delay would put more than $200 billion into the economy that would have gone into paying taxes in April.

Some details are still scarce but Mnuchin announced on March 17 that taxpayers who owe can defer payment on up to $1 million of taxes interest free and penalty free for 90 days. Large corporations can defer up to $10 million in taxes for up to 90 days.

We'll provide more details as they become available. Contact your DWD accountant for how to proceed with your return.

Congress is also working on a package of economic stimulus and other provisions to help individuals and businesses cope with the virus.

High Deductible Health Plans and COVID-19 Costs

The IRS also issued Notice 2020-15 on March 11. The guidance allows high-deductible health plans (HDHPs) to pay for COVID-19-related testing and treatment, without jeopardizing their status. This also means that an individual with an HDHP that covers these costs may continue to contribute to a Health Savings Account.

According to the guidance, an HDHP won't lose its HDHP status if it pays, without applying the minimum deductible or any cost sharing, for a plan participant's testing for and treatment of COVID-19. However, the notice doesn't require HDHPs to provide testing and treatment services without a deductible or cost sharing. It only provides that an HDHP may provide such benefits without losing its HDHP status.

The notice also doesn't modify previous guidance regarding the requirements to be an HDHP other than with respect to testing for and treatment of COVID-19. As in the past, any vaccination costs continue to count as preventive care and can be paid for by an HDHP.

HDHP plan participants should consult their health plans to determine any health benefits for testing for and treatment of COVID-19 provided by their plans, including the potential application of any deductible or cost-sharing. 

Posted in Tax Topics For Individuals, Tax And Accounting Topics For Business

Disclaimer: The information contained in Dulin, Ward & DeWald’s blog is provided for general educational purposes only and should not be construed as financial or legal advice on any subject matter. Before taking any action based on this information, we strongly encourage you to consult competent legal, accounting or other professional advice about your specific situation. Questions on blog posts may be submitted to your DWD representative.