Roundtable Urges Treasury and IRS to Provide Additional Emergency Relief
March 20, 2020
Today, The Real Estate Roundtable wrote to Treasury Secretary Steven Mnuchin and IRS Commissioner Charles P. Rettig applauding the administrative's actions taken this week to permit the deferral of income tax payments by American businesses and workers.
The Roundtable is urging Treasury to act quickly and use its broad authority to provide additional emergency relief that will help avoid permanent business closures, layoffs, and consumer bankruptcies.
Specifically, we urge the Administration to grant temporary, emergency relief under section 7508A with regard to the treatment of cancellation of debt (COD) income. Following the President’s determination that COVID-19 constitutes a national emergency, section 7508A in combination with section 7508(a)(1)(K) permits a delay of up to one year with respect to a taxpayer’s compliance with any “act required or permitted under the internal revenue laws specified by the Secretary.” Using that authority, the Treasury should provide a one-year delay for the recognition of any tax consequences to the borrower of any COD income accruing between March 1 and August 31, 2020.