ABA Calls for Tax-Related Guidance, Reporting Relief Due to COVID-19

In a letter to IRS officials yesterday, ABA called for additional guidance to help taxpayers and financial institutions comply with tax-related obligations during the coronavirus pandemic. Specifically, ABA said further guidance is needed on Paycheck Protection Program reporting, the deadlines related to IRA and Coverdell ESA contribution reporting, reporting for capitalized interest on modified mortgages and deductions for bad debt.

The association also emphasized the need for general reporting relief for institutions that may be experiencing operational challenges due to the pandemic. ABA urged the IRS to consider providing delays in filing due dates, providing a “no penalty assessment” period until normal operations can resume, accepting electronic signatures on required tax documentation and providing reasonable relief from any penalties and interest assessments for compliance shortfalls that may have occurred during the pandemic.