IRS Confirms It Will Not Expand COVID-19 Travel Relief
In our previous Client Alert, IRS Releases Guidance on COVID-19 Travel Disruptions, we provided an overview of the relief granted by the IRS due to the travel restrictions brought on by the COVID-19 pandemic. One of the issues left outstanding was whether the IRS would expand the 60-day relief period granted to eligible individuals under Rev. Proc. 2020-20. According to recent statements by the U.S. Treasury Department, that issue has now been put to rest.
The U.S. Treasury Department does not plan on lengthening the 60-day period (referred to in Rev. Proc. 2020-20 as the “COVID-19 Emergency Period”). While recognizing that travel disruptions still exist, a spokesperson for the Treasury Office of International Tax Counsel noted that the relief was premised on the state of affairs that were present at the time the IRS issued Rev. Proc. 2020-20. Given the taxpayer-favorable presumptions already included in Rev. Proc. 2020-20, plus the ability to still qualify for other exceptions, such as the closer connection exception, the IRS is apparently of the view that no further relief is warranted.
Affected taxpayers who have remained in the U.S. for longer than the 60-day relief period should contact one of our international tax attorneys to review their current U.S. tax situation and discuss viable planning options.
This information is intended to inform our clients and other friends about legal developments, including recent decisions of various municipalities, legislative, and administrative bodies. Because of the rapidly changing landscape related to COVID-19, we intend to send out regular updates. The information we provide is not intended as legal advice and viewers/readers should not rely on information contained in these materials to make business or legal decisions. Before making any legal decisions, consult your lawyer. Please do not hesitate to contact us should you need assistance responding to the many issues which have arisen, and will continue to arise, out of this situation.
The U.S. Treasury Department does not plan on lengthening the 60-day period (referred to in Rev. Proc. 2020-20 as the “COVID-19 Emergency Period”). While recognizing that travel disruptions still exist, a spokesperson for the Treasury Office of International Tax Counsel noted that the relief was premised on the state of affairs that were present at the time the IRS issued Rev. Proc. 2020-20. Given the taxpayer-favorable presumptions already included in Rev. Proc. 2020-20, plus the ability to still qualify for other exceptions, such as the closer connection exception, the IRS is apparently of the view that no further relief is warranted.
Affected taxpayers who have remained in the U.S. for longer than the 60-day relief period should contact one of our international tax attorneys to review their current U.S. tax situation and discuss viable planning options.
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