Current Events in March 2020

Woom bikes USA of Austin, Texas, is recalling about 5,500 Woom model 4, 5, 6 bicycles.

The bicycle’s front fork can loosen and detach, posing fall and injury risks to the rider.

The firm has received two reports of the fork becoming loose or detaching in the U.S. No injuries have been reported.

This recall involves Woom bicycle models 4 (20-inch), 5 (24-inch) and 6 (26-inch), sold in red, blue, green, purple and yellow.

The model number is on the top tube of each bike, and “Woom” is printed across the bottom tube of the bicycle frame.

The bicycles, manufactured in Cambodia, were sold online at us.woombikes.com from August 2018, through March 2019, for about $450 (woom 4), $480 (woom 5) and $500 (woom 6).

What to do

Consumers should immediately stop using the recalled bicycles and contact the firm for a free repair kit for the front fork. The firm is contacting all known purchasers and providing a free repair kit including installation instructions.

Consumers may contact Woom bike USA toll-free at (855) 966-6872 from 8 a.m. to 5 p.m. (CT) Monday through Friday, by email at usa@woombikes.com or online at us.woombikes.com and click on “Service” at the top of the page and “Recall Notice” for more information.

Scams directed against consumers usually are aimed at robbing them financially, but the U.S. Food and Drug Administration (FDA) is warning that some coronavirus (COVID -19) scams could result in victims’ death.

The agency has expressed concern at the large number of scams purporting to offer diagnosis, treatment, and even a cure for the virus. The FDA points out that only clinically administered tests can detect the virus and, as yet, there are no approved treatments or cures.

“Some people and companies are trying to profit from this pandemic by selling unproven and illegally marketed products that make false claims, such as being effective against the coronavirus,” the FDA said in a press release. “These fraudulent products that claim to cure, treat, or prevent COVID-19 haven't been evaluated by the FDA for safety and effectiveness and might be dangerous to you and your family.”

Warning letters

In early March, the FDA joined the Federal Trade Commission (FTC) in sending warning letters to seven companies that the agencies said were marketing unapproved products, deceptively claiming they could treat the coronavirus.

The FDA has now ramped up its level of concern as scammers have become bolder in their claims and target more people. The agency is particularly concerned that products marketed with deceptive and misleading claims might stop or delay people who buy them from getting appropriate medical attention if they get the virus. That, the FDA says, could result in serious illness and even death.

“It's likely that the products do not do what they claim, and the ingredients in them could cause adverse effects and could interact with, and potentially interfere with, essential medications,” the FDA said.

Red flags

Here are some red flags that could indicate that an ad or promotion for a coronavirus product is false or misleading:

• It claims a food item or dietary supplement can protect against COVID-19

• It offers a test you can take at home to check for the presence of the virus

• It offers a drug to protect against or cure the virus

• It offers any type of vaccine

Remember, only medical professionals can treat the virus; so far, there is no silver bullet that can kill it. Fortunately, the majority of cases of the coronavirus are relatively mild, with symptoms similar to a cold or the flu.

However, mild cases have been known to get worse, so seeking medical attention early improves the odds of a speedy recovery. 

In a unanimous vote, the Senate finally reached a compromise and approved a nearly $2 trillion emergency spending bill to help consumers and businesses cope with the economic damage from the coronavirus (COVID-19) pandemic.

The measure now heads to the House, where a vote -- and approval -- is expected by Friday. Here are some of the main provisions of the bill:

Direct payments to individuals

The bill calls for spending $301 billion in direct payments to the American people. It breaks down largely the way it did in earlier drafts of the legislation, with households receiving up to $1,200 per adult and $500 per child.

However, the bill dictates that consumers who earn more money will receive less. The payments begin to be reduced at $75,000 of annual adjusted gross income, and they aren’t available at all for top wage earners.

The money will come from the Internal Revenue Service (IRS) in the form of an extra tax refund since the IRS already has everyone’s income data and can get the money flowing quickly.

Expands unemployment benefits

Congress will spend $250 billion to increase the amount of unemployment checks, extend the time period they can be received, and cover more workers.

Instead of 26 weeks, people put out of a job by the pandemic will receive benefits for up to 39 weeks if needed. The measure increases the payment by $600 a week for the first four months.

In addition to covering payroll employees who lose their jobs, the measure takes the gig economy into consideration. Independent contractors and freelancers are also eligible for benefits. 

Small business loans

Small businesses will get a $349 billion lifeline in the form of small business loans. To sweeten the deal even more, loans used to pay rent, utilities, and payroll won’t have to be repaid if the business meets certain conditions.

Airlines

Specific industries, such as the nation’s airlines, have been devastated by the coronavirus, with more pain likely to come in the future. Congress will spend part of a $500 billion tranche to provide loans and loan guarantees to airlines and other industries deemed critical to national security.

Airlines and cargo carriers will receive $29 billion to help them make up for the loss of business. In addition, they’ll get up to $39 billion to cover employees’ wages.

States

State and municipal governments are struggling with a dramatic loss in tax revenue while still providing services. The measure sends $150 billion to states, with larger states in terms of population getting the most.

In the case of states with large cities, those cities will get a slice of the state’s funding directly, without having to apply to the state.

Hospitals

Congress has set aside $340 billion in supplemental spending. Of that amount, $117 billion will go to the nation’s hospitals, including Veterans Administration facilities. Both have been on the front lines as health care professionals have tried to care for the growing number of COVID-19 cases.

The massive bill also contains provisions to help farmers, support mass transit, and bolster pharmaceutical researchers seeking treatments and vaccines.

Coronavirus (COVID-19) tally as compiled by Johns Hopkins University: (Previous numbers in parentheses)

Total U.S. confirmed cases: 69,684 (55,568)

Total U.S. deaths: 1,049 (809)

Total global cases: 495,086 (441,187)

Total global deaths: 22,295

Senate approves massive aid to consumers and businesses

Unanimous votes in the U.S. Senate are rare these days, but all present lawmakers said “aye” when a $2 trillion spending measure to address the coronavirus (COVID-19) came up for a vote.

Likely of most interest to consumers, the measure sends every American a check and extends and increases unemployment benefits. House approval is expected tomorrow. Get the details here.

U.S. Deaths now over 1,000

It’s a tragic milestone, but coronavirus deaths in the United States have moved past the 1,000 mark to 1,049. Fatalities have increased rapidly over the last few days, but the U.S. still trails Italy, Spain, and China when it comes to that metric.

The U.S. numbers aren’t likely to improve anytime soon. A number of health officials have predicted U.S. coronavirus deaths won’t peak until three weeks from now at the earliest.

Hospital tipping point

In major cities and coronavirus hotspots, hospitals are struggling to treat all their patients. The Wall Street Journal reports that some New York City hospitals have been forced to move patients to facilities in other areas and create makeshift morgues using refrigerated trucks.

Some New York hospitals have so many critically ill patients that they have begun diverting ambulances to other locations. Efforts are underway to build a temporary hospital in a large conference center in Manhattan. While new cases are still increasing, New York Gov. Andrew Cuomo says there’s been a slight decrease in the number of hospital admissions.

California catching up to New York

New York is not the only state to see a surge in reported coronavirus cases. In California, the number of cases is doubling every three to four days, according to CNN.

Statewide, the number of confirmed cases surged past 3,000 early today. Comedian Kathy Griffin tweeted that she has been hospitalized in Los Angeles with serious coronavirus symptoms. 

FDA says coronavirus scams could be a matter of life and death

The U.S. Food and Drug Administration (FDA) is warning all consumers not to fall for claims that a particular product can protect against or even cure the coronavirus. It says none of these things exist and anyone who says they do is running a scam.

The agency is especially worried that people will buy these products -- which include dietary supplements and purported tests -- and not seek medical attention if they get the virus, leading to serious illness and even death.

Around the nation

• Illinois: The City of Chicago has closed Lakefront Trail and other parks and beaches until further notice. The action came as Mayor Lori Lightfoot expressed irritation at residents who refused to honor her shelter-in-place request and crowded into recreational areas over the last few days. 

• Texas: State health officials are expressing hope that an early spring in the state will help slow the spread of the coronavirus. They cite a new study by scientists at the Massachusetts Institute of Technology which found that 90 percent of the virus transmissions through Sunday occurred in areas with a temperature from 37 to 63 degrees.

• Tennessee: Attorney General Herbert Slatery III has filed an emergency petition asking the Tennessee Public Utility Commission to prohibit the utilities it regulates from disconnecting service for nonpayment during the State of Emergency invoked by Governor Bill Lee. Slatery noted that several utilities had already announced moratoriums on cutting off service.

Amazon’s decision to make “essential items” -- household staples, sanitizers, baby formula, and medical supplies -- its priority during the COVID-19 pandemic is facing some pushback from both sellers and customers.

There’s no question that the people most vulnerable to the virus should get first dibs on products like toilet paper and sanitizing wipes, but America’s dependence on Amazon -- coupled with Amazon’s unpreparedness to deal with the retail impact of the outbreak -- may be the straw that breaks the online retailer’s back.

When the company was strapped with the top-down decision to stop accepting all other items at its warehouses (until April 5) and only deliver what it considers essential, it probably looked good on paper. However, in reality, Amazon was painfully understaffed and probably didn’t consider all the non-essential items people forced to work at home might need -- including things like a computer docking station that would make life easier for displaced workers. It may have also underestimated how frustrating it is for consumers used to two-day delivery to have to wait for delivery.

Little did Jeff Bezos know how right he was when he sent a memo to the world stating that “there is no instruction manual for how to feel at a time like this, and I know this causes stress for everyone.”

Devastating to sellers?

“They aren’t allowing anything now to be sent in that isn’t Medical or Household until April 5th. This is going to kill us,” vented one user in Amazon’s seller forum, when Amazon announced its decision.

In that one fell swoop, Amazon sellers were sent scampering to other selling platforms where they could sell their “non-essential” items to consumers, sooner rather than later. 

“People are not going to want to order items when they won’t ship for a month,” Bernie Thompson, an electronics retailer who makes -- or did make -- his living off of Amazon told Wired. 

However, one Amazon seller mentor holds the opposite opinion. "Yes, shipments may be delayed by a day or two, but this is not devastating Amazon or its sellers, “ Kale Abramson, the co-founder of Nine University, which teaches people how to open a third-party Amazon business, told ConsumerAffairs. 

“And now, China is open for business. Once Amazon works out the kinks, hires more people, it will be like nothing ever happened by mid-April,” he said.

Getting out from behind the 8-ball

As best they can, the merchants who make their living off of Amazon and non-essential items are helping each other cope with the situation within the seller’s forum to find ways around the issue.

The fix that seems to be getting the best reception is changing from “fulfillment by Amazon” (FBA) to “fulfillment by merchant” (FBM). Changing over is a hassle for a mom-and-pop business that counts on Amazon to take care of warehousing and fulfillment, but as one forum member said, “(FBM) may not be as convenient (as FBA) but you will survive.”

Amazon rolls back some restrictions

How does Amazon find a way out of this predicament ? Actually, it’s already starting to by rolling back some of the original restrictions it placed on sellers.

“Given the material impact that COVID-19 has had on many of our sellers, we have taken steps to proactively mitigate the impact of this event on the health of your Amazon seller account by relaxing our policies for shipping-related Performance metrics,” Amazon posted on its seller forum.

“Specifically, we will take into account any COVID-related disruption as it relates to late shipping or needing to cancel orders due to factors outside your control. While we always aim to deliver on our customer promise, our goal is to help you manage your business through this difficult period.”

As one seller responded, “Welcome news, indeed, in these troubling and uncertain times.” 

Attorneys general from 33 states are calling on Amazon and other major online retailers to implement measures to deter price gouging in the midst of the coronavirus pandemic. 

The unexpected health crisis has led to a surge in demand for products, including hand sanitizer, disinfecting wipes, and face masks. The shortage of such products has spurred an increase in sellers listing the items online at much higher prices than normal. 

In a letter to companies, the group of state attorneys general said retailers “have an ethical obligation and patriotic duty to help your fellow citizens in this time of need by doing everything in your power to stop price gouging in real-time.” 

“We are in the middle of a national public health crisis and the last thing folks should be worrying about is someone charging insanely high prices for necessary goods like cleaning supplies, hand sanitizers, or medicines,” said Virginia Attorney General Mark Herring. 

“While Virginia law offers protections for folks against price gouging, online marketplaces like Amazon, Facebook or Craigslist must be regulated by their parent companies to make sure people aren’t taking advantage of this crisis,” Herring continued. “We must all play our part in making sure that everyone has the things that they need during this unprecedented time and that includes putting a stop to price gouging.”

Price gouging protections needed

The joint letter was published the same week that Amazon announced that it recently booted nearly 4,000 sellers off of its site for violating its fair pricing policies by “seeking to profit off the COVID-19 crisis.” 

The state attorneys general acknowledged some of the actions taken by platforms to crack down on the tactic. However, they said consumers were already impacted by the initial presence of the overpriced items and implored online sellers -- including eBay, Facebook, and Amazon, among others -- to implement tougher policies to prevent price gouging. Consumers should also have a way to report potential violations, the group said. 

Following the release of the letter, Facebook stated that it is “focused on preventing exploitation of this crisis for financial gain.” 

“Since COVID-19 was declared a public health emergency, Facebook has removed ads and commerce listings for the sale of masks, hand sanitizer, surface disinfecting wipes and COVID-19 test kits,” a Facebook spokesperson told CNBC. “While enforcement is not perfect, we have put several automated detection mechanisms in place to block or remove this material from our platform.”

Under the massive $2 trillion Coronavirus stimulus package agreed upon Wednesday by Senate Republicans and Democrats, American taxpayers can expect to receive direct payments of at least $1,200. 

However, consumers shouldn’t expect to receive those checks right away. Treasury Secretary Steven Mnuchin said Wednesday that the Trump administration plans to start sending payments to individuals within three weeks of the bill being signed into law, but a clear timeline hasn’t yet been established. 

"Our expectation is within three weeks we will have direct payments out where we have depository information," Mnuchin told CNN. "We're looking to get a lot more information and we have procedures to do that."

Direct cash payments 

Under the draft version of the measure: 

• Single Americans would receive $1,200; 

• Married couples would receive $2,400; and

• Parents would receive $500 per child. 

The amount received will lessen in cases where individuals make more than $75,000 annually, and people making more than $99,000 per year would not be eligible to receive cash payments. Married couples and joint tax filers who earn up to $198,000 would also be eligible to receive payments under the bill. 

Although Trump and Mnuchin are pushing to begin sending out stimulus checks in as little as two or three weeks after the bill is finalized, experts say six weeks from now is likely the earliest consumers can expect to receive their checks. 

“Historical precedent, plus the unprecedented crisis we’re in, leads me to believe May is the earliest the [Internal Revenue Service] would be able to start sending any checks,” Erica York of the Tax Foundation told Fortune.

Howard Gleckman, a senior at the Tax Policy Center, also believes it will take longer than a few weeks for checks to go out. 

"It is extremely unlikely that people will get payments by April 6 -- just two weeks from now," Gleckman told CNN. "It is more realistic to expect them in a month or two."

The struggling airline industry got a much needed sigh of relief on Wednesday. The U.S Senate offered the airlines an unparalleled aid package totaling $58 billion to assist in covering lost income and wages that crippled them as an extent of the coronavirus pandemic.

While some consumers may think that the airline industry is flush with cash thanks to the billions it takes in every year from baggage fees and the like, the industry was looking at global loss of nearly $250 billion in revenues stemming from the outbreak. That’s about 12 billion checked bags the airlines would have to charge for to try and make up for that loss. 

Congress tracking how money is spent

On the Senate floor, legislators made it clear that the relief fund better not be toyed with.

“There are so many more things we need to do, and while I support the elements of supporting the aviation industry in this package, I wish we would have gotten more requirements on the airline industries for the grant section of this bill,” said Sen. Maria Cantwell (D-WA)

“I personally believe that in the future in a healthier airline industry, they should pay money back to the Federal Government. We certainly should be protecting the workforce during this time period, and that is what is most important—to make sure that an airline doesn’t take money from the Federal Government or go into bankruptcy and shortchange the workers and the workforce, as has been done in previous packages for them.”

When Sen. Chuck Schumer (D-NY) took to the floor, he stood shoulder to shoulder with Cantwell, telling the two million airline employees that their "collective bargaining rights will be protected, and airlines will not be allowed to spend any grant money on stock buybacks or CEO bonus pay for the life of the grant plus 1 year.”

There’s still work to be done

U.S. Travel Association President and CEO Roger Dow noted that no legislative package was going to entirely eliminate all of the negative impact from the coronavirus. However, he says that the deal "gives the travel economy a fighting chance to weather the eye of the storm and prepare to quickly lead the recovery.

Dow warned that the industry will still face headwinds in the future.

“Our industry stayed together and presented hard facts to make the case for massive and urgent relief, and our political leaders heard us. However, the true scale of this crisis, and the economic damage created by this public health disaster, will extend beyond the scope of this historic bill. It’s sad, but it’s true, more help will be needed soon.”

A record number of unemployment claims have been filed in the wake of the coronavirus crisis. On Thursday, the Labor Department reported that 3.28 million Americans filed for unemployment benefits last week. 

The Labor Department, which has been tracking these claims since 1967, said the latest figures represent a new historical record. The number of new claims filed last week was significantly higher than the 665,000 recorded during the peak of the Great Recession in 2009. It was also higher than the previous record of 695,000 in October of 1982. 

“This marks the highest level of seasonally adjusted initial claims in the history of the seasonally adjusted series,” the Department said. 

Rebound expected

Economic conditions began deteriorating after health officials started urging consumers to stay home and practice social distancing to mitigate the spread of the coronavirus. 

“We’ve known this number was coming for a week and a half,” Tom Gimbel, founder and CEO of the LaSalle Network, a Chicago-based employment agency, told CNBC. “It doesn’t surprise me at all. When you see a city like Las Vegas get shut down, I don’t know what other options there were than seeing a number like this.”

Federal Reserve Chairman Jerome Powell said he expects the economy to bounce back after the spread of the virus is under control.  

“At a certain point, we will get the spread of the virus under control,” he said Thursday on NBC’s “Today” show. “At that time, confidence will return, businesses will open again, people will come back to work. So you may well see a significant rise in unemployment, a significant decline in economic activity. But there can also be a good rebound on the other side of that.”

While no one is sure when the health crisis will come to an end, the Senate recently approved a massive $2 trillion economic stimulus package to help affected businesses and individuals. A House vote on the measure is expected by Friday.

One recent study highlighted the sleep benefits consumers can reap by taking a bath before bed. Now, researchers are exploring how hot baths could improve health in other areas. 

The study revealed that daily hot baths could be the key to lowering the risk of death from cardiovascular disease and stroke. 

“We found that frequent tub bathing was significantly associated with a lower risk of hypertension, suggesting that a beneficial effect of tub bathing on risk of [cardiovascular disease] may in part be due to a reduced risk of developing hypertension,” the researchers explained.

Improving health outcomes 

The researchers utilized data from an ongoing population tracking survey in Japan to determine how daily hot baths affect cardiovascular health. 

Participants reported on their diets, physical activity, sleep patterns, and how often they bathed in a tub, among several other factors that could contribute to cardiovascular function. 

The researchers learned that daily baths, especially with hot water, were associated with better health outcomes than those who were taking baths less often. 

Hot water, as opposed to warm or cool water, was found to have a 35 percent lower risk of cardiovascular disease. Similarly, the risk for both cardiovascular disease and stroke dropped by nearly 30 percent each when participants took hot baths daily. Tub bathing less frequently wasn’t associated with the same results. 

The researchers explained that though they observed a reduced risk of cardiovascular disease and stroke when participants bathed more often, the inverse relationship wasn’t true. Those who didn’t tub bathe as often weren’t at an increased risk of disease. 

Risks of hot baths

Though the researchers attributed these positive health outcomes to hot baths, experts have also found that hot baths have been linked with a significant number of sudden deaths. 

Dr. Andrew Felix Burden hypothesized that overheating could be the primary cause of these deaths, but more work is needed to understand this relationship, and consumers should exercise caution when taking hot baths. 

“Investigations into the potential cardiovascular benefit of heat-free immersion in warm to hot water are needed,” said Dr. Burden. “In the meanwhile, caution is needed because of the higher mortality associated with such bathing in an unselected population.”

Researchers at the American Academy of Neurology recently conducted a study that was designed to investigate what effect low-dose aspirin can have on cognitive function. They learned that a daily aspirin regimen isn’t effective in reducing the risk of cognitive decline.

“Worldwide, an estimated 50 million people have some form of dementia, a number that is expected to grow as the population increases, so the scientific community is eager to find a low-cost treatment that may reduce a person’s risk,” said researcher Joanne Ryan, PhD. 

“Unfortunately, our large study found that a daily low-dose aspirin provided no benefit to study participants at either preventing dementia or slowing cognitive decline.”

How is cognition affected?

The researchers started by dividing nearly 20,000 participants into two groups: half of the participants received low-dose aspirin each day of the study; the other half of the participants took a placebo. 

The researchers assessed their cognitive function at the start of the study, evaluating their thinking and memory skills. Participants’ progress was tracked for just under five years, and the researchers evaluated the same skills at various check-ins over the course of the study. 

While none of the participants had any history of dementia at the start of the study, by the time it was over, nearly 600 participants had developed the condition. Ultimately, the aspirin played no role in strengthening or weakening the participants’ cognitive function, and it also wasn’t a factor in whether or not they developed dementia. 

The researchers believe that one such reason this trial was unsuccessful was that all of the participants were healthy when the study began. Previous research has indicated that an aspirin regimen is typically unsuccessful in warding off other health conditions, like heart disease or stroke, when consumers aren’t affected by either issue. 

Moving forward, they want to follow these findings over a longer period of time to see if the study participants can reap the benefits associated with low-dose aspirin. 

“While these results are disappointing, it is possible that the length of just under five years for our study was not long enough to show possible health benefits from aspirin, so we will continue to examine its potential longer-term effects by following up with study participants in the coming years,” said Dr. Ryan. 

Ford Motor Company is recalling 54,292 model year 2006-10 Ford Fusions, model year 2006-10 Mercury Milans and model year 2006-10 Lincoln MKZs in Canada.

A normally closed valve inside the hydraulic control unit may stick open, which could result in extended brake pedal travel, potentially increasing the risk of a crash.

One accident related to this condition has been reported.

What to do

Ford will contact owners, and dealers will inspect the hydraulic control unit for signs of stuck or slow-responding valves and replace the unit if necessary.

The system will be pressure-flushed with DOT 4 brake fluid and the DOT 3 reservoir cap will be replaced with a new DOT 4 cap.

All work will be done free of charge.

Owners may contact Ford customer service at (866) 436-7332. Ford's reference number for this recall is 20S14.

IcelandicPlus of Ft. Washington, Pa., is recalling its Capelin Pet Treats.

Some of the fish have exceeded the FDA compliance guideline for fish larger than five inches. The agency has determined that salt-cured, dried, or fermented un-eviscerated fish larger than five inches have been linked to outbreaks of botulism poisoning in humans.

There are no reports of illnesses of dogs, cats or people in connection with Capelin.

The recalled product is packaged in a 2.5 ounce tube or a 1.5 or 2.5 ounce bag marked “Icelandic+ Capelin WHOLE FISH, PURE FISH TREATS FOR DOGS,” or “PURE FISH TREATS FOR CATS,” UPC CODES, 8 5485400775 9; 8 5485400711 7; and 8 5485400757 5. (lot numbers 02/2020 to 02/2022), and sold to consumers nationwide through independent pet specialty stores.

What to do

Customers who purchased the recalled product should return it to the place of purchase for a refund.

Consumers with questions may contact the company at (857) 246-9559. Monday – Friday, 8am – 5pm (EST).

Nissan North America is recalling 450 model year 2020 Infiniti Q60s with rear seat belt assemblies with a dual-mode locking mechanism.

The seat belt webbing sensor locking mechanism may not lock as intended.

In a crash involving multiple impacts, the seat belt may not restrain the occupant properly, increasing the risk of injury.

What to do

Nissan will notify owners, and dealers will inspect the rear seat belt assembly production dates, and replace the assemblies -- as necessary -- free of charge.

The recall is expected to begin May 8, 2020.

Owners may contact Nissan customer service at (800) 867-7669.

Keeping up with what’s changing on Capitol Hill during the coronavirus pandemic has become our charge at ConsumerAffairs, particularly when it’s something that impacts the consumer.

One thing that is in constant motion as a result of the outbreak is what’s happening at the IRS in the way of tax returns -- filing deadlines, refunds, forms… well, darn near everything.

On Wednesday, the IRS clued ConsumerAffairs into a new set of questions and answers related to income tax return filing and payment relief that every taxpayer should take five minutes to absorb. 

Note that for any form listed, the IRS provides a compilation of those forms along with instructions available here.

Payment Relief

Who qualifies for payment relief?

“Any person with a Federal income tax return or payment due on April 15, 2020, is eligible for relief under the Notice. ‘Person’ includes any type of taxpayer, such as an individual, a trust, an estate, a corporation, or any type of unincorporated business entity.” 

“The payment due refers to both 2019 Federal income tax payments (including payments of tax on self-employment income) and 2020 estimated Federal income tax payments (including payments of tax on self-employment income), regardless of the amount owed.” 

“The return or payment must be due on April 15, 2020 – this relief does not apply to Federal income tax returns and payments due on any other date.”

Do I have to actually be sick, or quarantined, or have any other impact from COVID-19 to qualify for payment relief?

“No, you do not have to be sick, or quarantined, or have any other impact from COVID-19 to qualify for relief. You only need to have a Federal income tax return or payment due on April 15, 2020, as described above.”

What are the form numbers of the specific Federal income tax returns whose filing deadlines have been postponed, from April 15 to July 15, under the Notice?

According to the IRS’ update, the Notice postpones the filing and payment of Federal income taxes reported on the following forms:  

• Form 1040, 1040-SR, 1040-NR, 1040-NR-EZ, 1040-PR, 1040-SS

• Form 1041, 1041-N, 1041-QFT

• Form 1120, 1120-C, 1120-F, 1120-FSC, 1120-H, 1120-L, 1120-ND, 1120-PC, 1120-POL, 1120-REIT, 1120-RIC, 1120-SF

• Form 8960

• Form 8991

“With respect to Form 990-T, if that Form is due to be filed on April 15, then it has been postponed to July 15 under the Notice. For taxpayers whose Form 990-T is due on May 15, that due date has not been postponed under the Notice.”

“With respect to returns due on March 16, 2020, which include Form 1065, Form 1065-B, Form 1066, and Form 1120-S for calendar year taxpayers, the filing of those returns has not been postponed.”

I am a fiscal year filer. My Federal income tax return for fiscal year 2019 is due on April 15, 2020. Am I an “Affected Taxpayer” eligible for relief under the Notice? 

“Yes, the relief provided in the Notice applies to Federal income tax returns and payments in respect of an Affected Taxpayer’s 2019 taxable year, and postpones those 2019 return filings and payments due on April 15, 2020 until July 15, 2020.”  

“If your Federal income tax return for your fiscal year ending during 2019 is due on April 15, 2020, whether that is the original due date or the due date on extension, your due date is postponed to July 15, 2020.”

What about businesses or other entities that have filing due dates on May 15, June 15, or some other date besides April 15. Have their filing and payment deadlines been postponed?

“No, any taxpayers who have filing or payment due dates other than April 15 have not been granted relief at this time.”

Does the relief provided in the Notice apply to payroll or excise taxes?

“No, under the Notice, normal filing, payment, and deposit due dates continue to apply to both payroll and excise taxes.”

Does the relief provided in the Notice apply to estate and gift taxes?

“No, normal filing and payment due dates continue to apply to estate and gift taxes.”

Does the relief provided in the Notice apply to section 965(h) installment payments due on April 15, 2020?

The IRS says the answer to this question is a definite “yes.” 

“The relief applies to section 965 installment payments due on April 15, 2020. Although the section 965(h) installment payment is generally made in respect of a taxpayer’s 2017 or 2018 tax year, under section 965(h)(2), the due date of the installment payment associated with a 2019 tax return is the due date of the taxpayer’s 2019 Federal income tax return.”

“For any taxpayer whose Federal income tax return filing due date has been postponed from April 15 to July 15, 2020, the due date of that taxpayer’s section 965 installment payment has also been postponed to July 15, 2020.”

Does the relief provided in the Notice apply to estimated payments for a corporation required to make payments under section 59A (Basis Erosion and Anti-Abuse Tax, or BEAT)? 

“Yes, for any taxpayer whose Federal income tax return filing deadline has been postponed from April 15 to July 15, 2020, the due date for Form 8991 and the BEAT payment has been postponed to July 15, 2020.”

Does the relief provided in the Notice apply to the filing of information returns?

“No, the relief only applies to the filing of Federal income tax returns due on April 15, 2020.”

Does this relief apply to state tax liabilities?

“No, this relief applies only to Federal income tax payments. State filing and payment deadlines vary and are not always the same as the Federal filing and payment deadline. We urge you to check with your state tax agencies for those details.”

More information is available at https://www.taxadmin.org/state-tax-agencies.

Filing and paying your 2019 Federal income taxes and your first quarter 2020 Federal estimated income taxes

I haven’t filed my 2019 income tax return that would have been due on April 15 yet, but I expect to file it by July 15. What do I need to do?

“Nothing, except file and pay any tax due with your return by July 15. You don’t need to file any additional forms or call the IRS to qualify for this automatic Federal tax filing and payment relief. If you expect a refund, you are encouraged to file your return as soon as you can so that you can receive your refund.”

“Filing electronically with direct deposit is the quickest way to get refunds. If you need more time beyond July 15 to file your return, request an automatic extension of time to file as described next.”

What if I am unable to file my 2019 income tax return that would have been due on April 15 by July 15, 2020?

“If you are an individual, you can request an automatic extension to file your Federal income tax return if you can’t file by the July 15 deadline. The easiest and fastest way to request a filing extension is to electronically file Form 4868 through your tax professional, tax software, or using the Free File link on IRS.gov. Businesses, including trusts, must file Form 7004.” 

“You must request the automatic extension by July 15, 2020. If you properly estimate your 2019 tax liability using the information available to you and file an extension form by July 15, 2020, your tax return will be due on October 15, 2020. To avoid interest and penalties when filing your tax return after July 15, 2020, pay the tax you estimate as due with your extension request.”

I already filed my 2019 income tax return that would have been due on April 15 and I owe taxes, but I haven’t paid yet. What do I need to do to avoid interest and penalties?

“To avoid interest and penalties, pay your taxes in full by July 15, 2020. If you filed Form 1040 or Form 1040-SR, the tax payment amount can be found on line 23. If you filed Form 1040-NR, the tax payment amount can be found on line 75. For a corporation filing a Form 1120, the tax payment amount can be found on line 35.”

The IRS adds that Interest and penalties will begin to be charged after July 15 for any amount remaining unpaid by that date.

I already filed my 2019 income tax return that would have been due on April 15 and scheduled a payment of taxes for April 15, 2020. Will this payment be automatically rescheduled to July 15, 2020?

“No,” the IRS says. “the payment will not be automatically rescheduled to July 15. If you do nothing, the payment will be made on the date you chose. Here is information on how to cancel and reschedule your payment:

• If you scheduled a payment through IRS Direct Pay, you can use your confirmation number from the payment to access the Look Up a Payment feature. You can modify or cancel a scheduled payment until two business days before the payment date. The email notification you received when you scheduled the payment will contain the confirmation number.

• If you scheduled a payment through Electronic Federal Tax Payment System (EFTPS), click on Payments from the EFTPS home page, login, then click Cancel a Tax Payment from the left menu and follow the instructions. You must do so at least two business days before the scheduled payment date.

• If you scheduled a payment as part of filing your tax return (authorizing an electronic funds withdrawal), you may revoke (cancel) your payment by contacting the U.S. Treasury Financial Agent at 888-353-4537. You must call to make a payment cancellation request no later than 11:59 p.m. ET two business days prior to the scheduled payment date.

• If you scheduled a payment by credit card or debit card, contact the card processor to cancel the card payment.”

The Notice postpones the deadline for first quarter 2020 estimated income tax payments due on April 15, 2020. What about second quarter estimated tax payments due on June 15? Have they been postponed as well?

“No, second quarter 2020 estimated income tax payments are still due on June 15, 2020. First quarter 2020 estimated income tax payments are postponed from April 15 to July 15, 2020.”

Individual Retirement Accounts (IRAs) and workplace-based retirement plans

Does this relief provide me more time to contribute money to my IRA for 2019?

“Yes. Contributions can be made to your IRA, for a particular year, at any time during the year or by the due date for filing your return for that year. Because the due date for filing Federal income tax returns has been postponed to July 15, the deadline for making contributions to your IRA for 2019 is also extended to July 15, 2020.”

For more details on IRA contributions, see Publication 590-A, Contributions to Individual “Retirement Arrangements (IRAs).”

If I owe the 10 percent additional tax on amounts includible in gross income from a distribution that I took from my IRA or workplace-based retirement plan in 2019, is the due date for paying that additional tax also extended to July 15, 2020 on account of this relief?

If you're hoping for a yes on this, you’ve got it. And the reason? 

“Because the 10 percent additional tax is calculated, reported, and paid at the same time as the income tax owed on the amounts includible in gross income on the distribution, the reporting and payment of the 10 percent additional tax also has been extended to July 15, 2020 as a result of this relief.” 

I made excess elective deferrals to my workplace-based retirement plan in 2019.  Do I have to take those excess deferrals (and income) out of the retirement plan no later than April 15, 2020, in order to exclude the distributions from income?

“Yes, because that date is not also extended as a result of this relief.”

For employers with a federal income tax return due date of April 15, 2020, is the end of the grace period under section 404(a)(6) to make contributions to their qualified retirement plans on account of 2019 also July 15, 2020 as a result of this relief?

Another emphatic yes. Why? “Because these employers are Affected Taxpayers under Notice 2020-18 for whom the due date for filing Federal income tax returns and making Federal income tax payments that would be due April 15, 2020, is now July 15, 2020, the end of the grace period for these employers is also July 15, 2020 under this relief,” the IRS says in its new update. 

“So, for example, if an employer is a corporation with an April 15, 2020 due date for filing the Form 1120, then the grace period under section 404(a)(6) for the employer to make contributions to its workplace-based retirement plan that are treated as made on account of 2019 ends on July 15, 2020.”

Health Savings Accounts (HSAs) and Archer Medical Savings Accounts (MSAs) 

Does this relief provide me more time to contribute money to my HSA or Archer MSA for 2019?

“Yes. Contributions may be made to your HSA or Archer MSA, for a particular year, at any time during the year or by the due date for filing your return for that year. Because the due date for filing Federal income tax returns is now July 15, 2020, under this relief, you may make contributions to your HSA or Archer MSA for 2019 at any time up to July 15, 2020.”  

“For more details on HSA or Archer MSA contributions, see Publication 969, Health Savings Accounts and other Tax-Favored Health Plans.”

Refunds for older claims

I want to file a claim for a refund for 2016, which must be filed by April 15, 2020 to be timely. Does this relief give me more time to claim my 2016 refund?

“No, the relief provided for filing Federal income tax returns applies only to Federal income tax returns for the 2019 taxable year. The Notice does not extend relief to any filings or payments for the taxable year 2016.”

Overpayment of estimated tax

Does this relief postpone the time for filing Form 4466, Corporation Application for Quick Refund of Overpayment of Estimated Tax?

“No, the time for filing Form 4466 is not postponed. However, you may request your refund by filing your income tax return.”

Failure to make required estimated taxes for 2019

I failed to make the required installments of estimated tax in the required amounts during 2019 for my 2019 taxable year. Does this relief apply to an estimated tax penalty for 2019?

“No, the relief does not change the estimated tax requirements or estimated tax penalty for 2019. Relief from the penalty may be available under the normal rules. See Form 2210 (for individuals) or Form 2220 (for corporations) and the instructions for either form for details.”

Coronavirus (COVID-19) tally as compiled by Johns Hopkins University: (Previous numbers in parentheses)

Total U.S. confirmed cases: 55,568 (46,805)

Total U.S. deaths: 809 (593)

Total global cases: 441,187 (398,407)

Total global deaths:  19,784 (17,454)

CVS-Aetna to waive co-pays for coronavirus hospitalizations

CVS Health says it will waive cost-sharing and co-pays for Aetna’s commercial policyholders who are admitted to a hospital for treatment related to the coronavirus (COVID-19). The company said the move is part of its effort to reduce or eliminate consumers’ out-of-pocket expenses during the pandemic.

Previously, CVS Health cut cost-sharing for diagnostic testing and telemedicine sessions. The company also says it has taken steps to expand patient access to medications.

“The additional steps we’re announcing today are consistent with our commitment to delivering timely and seamless access to care as we navigate the spread of COVID-19,” said Karen Lynch, president, Aetna Business Unit and executive vice president at CVS Health. “We are doing everything we can to make sure our members have simple and affordable access to the treatment they need as we face the pandemic together.”

In states like New York and Washington with the strongest prevalence of COVID-19 cases, hospitals no longer need advance approval from Aetna for members requiring hospitalization for the virus. 

Aid could be on the way

Congress is poised to provide up to $2 trillion in aid to Americans and to businesses that have been slammed by the coronavirus. Republicans and Democrats in the Senate agreed on its provisions early this morning and could pass it later today. 

The House is not expected to give final approval until later in the week, though House Speaker Nancy Pelosi has said she will support the measure agreed to by both parties in the Senate.

Testing backlog

From the beginning of the outbreak of the coronavirus in the U.S., testing has been an issue. The Wall Street Journal reports that it still is.

The Journal reports that local officials around the country are having to improvise to track the number of infected people in their jurisdictions. They’ve had to look outside the United States for test supplies and to get lab results.

New York’s Mount Sinai Health system is reportedly conducting 1,000 tests a day, but doctors there say it isn’t enough. Dr. Deborah Birx, the response coordinator for the White House’s coronavirus task force, reports that 220,000 tests have been conducted nationwide in the past eight days.

Hertz providing free transportation for NYC health care workers

Hertz is providing free rental cars to health care workers in New York City who are coping with the worst of the coronavirus outbreak in the U.S. New York continues to lead the nation in both the number of cases and deaths.

Beginning today, health care workers in the city can pick up a rental and drive it through the end of April at no charge. 

"With New York City having the highest number of confirmed cases of COVID-19 in the country, healthcare workers are dealing with extremely challenging circumstances," said Kathryn Marinello, Hertz’s CEO. "It's vital that healthcare workers have safe and reliable transportation during this time, and we are eager to help.”

Marinello says Hertz has the capacity to make the offer because of the dramatic drop in travel.  To immediately have an impact, Hertz is working with Mount Sinai Health System to make vehicles available to its employees. It’s also supplying Mount Sinai with free cargo van rentals to transport ventilators and other medical supplies to support the crisis.

Peak prediction

CNN is reporting that an epidemiologist working with the Centers for Disease Control and Prevention (CDC) has predicted a peak of U.S. deaths from the coronavirus in three weeks. Ira Longini, professor at the Center for Statistics and Quantitative Infectious Diseases at the University of Florida,, works with the CDC on COVID-19 modeling.

Spain now the deadliest country

In recent weeks China has seen the number of new coronavirus cases decline, along with deaths from the disease. According to data collected by Johns Hopkins University, Spain passed China as the nation with the most coronavirus deaths today.

FDA supporting possible treatment

The Food and Drug Administration (FDA) is advancing what could turn out to be a treatment for COVID-19. The agency reports that it is facilitating access to convalescent plasma, the antibody-rich blood products from blood donated by people who have had the virus and recovered from it.

The FDA says plasma treatment might shorten the length, or lessen the severity, of the illness. The agency said it will be using multiple pathways to support these efforts. 

Waffle House temporarily closes restaurants in hard-hit areas 

Waffle House, a restaurant chain known for being open no matter the circumstances, says it has closed 418 of its locations. Nearly 1,600 of its restaurants remain open.

The restaurant announced the closings on its Facebook page, along with a map showing the locations that are open and those that have been temporarily closed. The map shows the closed restaurants are in areas that have reported large numbers of confirmed cases.

Around the nation

• Oklahoma: Gov. Kevin Stitt has issued an order closing all non-essential businesses and directed all older and medically vulnerable people to remain in their homes until at least April 30. The state has also temporarily removed restrictions on alcohol deliveries.

• Georgia: Attorney General Chris Carr is stepping up the fight to rid the marketplace of price gougers and scammers by partnering with members of the Georgia and national business communities – including Amazon, eBay, and Walmart. Amazon has already suspended thousands of price-gougers from its platform.

• South Carolina: Composite Resources and its subsidiary, Cat Resources, produce carbon fiber components used in the aerospace and defense industries. In 24 hours, it shifted production to cotton-poly masks for health care workers. “In a matter of 24 hours, we've sold in excess 2,000 masks," a company executive said.

Protecting yourself physically is at the top of the must-do list during the COVID-19 outbreak, but the Consumer Financial Protection Bureau (CFPB) says that protecting your finances during the pandemic is close behind.

Despite the Fed pumping money into the market and Congress trying its best to come up with a good-for-all relief package, at the top of the CFPB’s laundry list is getting financial institutions to work with their customers to meet their needs in their own backyards.

If you’re asking yourself shouldn’t presidential, congressional, state, or local initiatives take care of that as part and parcel of everything else they’re doing, the CFPB isn’t exactly confident.

“Communities continue to announce the temporary closure of businesses, schools and other public facilities or events. While these actions are necessary steps to help reduce exposures, it may bring financial uncertainty for many people who could experience a loss of income due to illness or workplace closures,” argued the bureau.

Financial resources for consumers

If you’re financially strapped because of the pandemic -- maybe because you’ve been furloughed or have taken a cut in pay to help your employer stay afloat -- the CFPB offers these resources: 

Protect yourself financially

As Americans prepare for the possible spread of the coronavirus or COVID-19, the CFPB offers resources on how to protect yourself financially against a job layoff, being victimized by a scam, etc.. 

Consumer reports

“Since our inception, we’ve built a robust and technologically forward complaint process that handles approximately 30,000 complaints every month,” the bureau reminds consumers. “Even in these challenging times, we are ready to send your complaints to companies to help you get the response you need.”

Protecting your credit during the coronavirus pandemic

Both a consumer’s credit report and credit score play important roles in any future financial opportunities that may come their way. The CFPB has some special suggestions on how to manage and protect those aspects during the COVID-19 (coronavirus) pandemic.

The weight the bureau places on credit protection is shared by privacy and security app developers, too.

“In light of recent events, monitoring credit reports and scores, as well as other data from which an identity can be stolen, should be top of mind for all Americans as they navigate the current economic climate,” virtual private network (VPN) Hotspot Shield’s Claire Cole told ConsumerAffairs, speaking to the company’s recent study on identity theft.

Dealing with debt: Tips to help ease the impact

Suffice it to say, debt collectors probably aren’t taking time off during the pandemic. So if you’re feeling their pinch, remember that you have rights. The CFPB has resources you can use to address stressful issues related to debt collection during the crisis.

"Don’t just stop making payments and hope it’ll work out,” Sara Rathner, the credit cards expert at NerdWallet told ConsumerAffairs. “You must work with your bank and opt in to any payment or hardship plans they offer. Your account will not stay in good standing if you simply ignore your bills for a few months.”

“Banks are working with customers on an as-needed basis. If you’re struggling financially, call your bank’s customer service line to explain your situation and discuss the available options. Some banks are making some changes across the board, like waiving certain fees,” Rathner advised.

Tips for financial caregivers

Last but not least, the CFPB is providing resources for financial caregivers who are helping people who cannot manage their money or property themselves during the coronavirus pandemic.

Every dollar counts

Finances just don’t take care of themselves. Rathner told ConsumerAffairs that consumers need to make sure they’re keeping an eye on their money and taking advantage of assistance programs.

“At a time like this, every dollar can count. Take advantage of these offerings if you need help, because they can take some of the burden off your plate and give you time to regroup and create a plan for yourself going forward," she said.

Republicans and Democrats in the Senate have reached an agreement on provisions of a massive coronavirus (COVID-19) aid package that contains loans to businesses and direct payments to Americans. A vote could come later today.

The measure, which allocates close to $2 trillion, is aimed at keeping key industries afloat and Americans financially solvent when many have suddenly lost their jobs.

The measure was drafted late last week under the direction of Senate Majority Leader Mitch McConnell (R-Ky.), but Democrats objected to some of the provisions that aided businesses. Two days of intense negotiations between the Trump administration and Democrats in the Senate resulted in compromises that all agreed to.

The full content of the legislation has not been released, but the major provisions of the measure are believed to include:

• Direct cash payments to individuals. Early drafts specified an amount of $1,200 per adult;

• An increase in unemployment benefits of $600 for four months;

• Loans totaling $350 billion for small businesses. Early drafts included a provision that would forgive loans used to meet payroll expenses if the business did not lay off any staff over a four month period;

• A $150 billion investment in the U.S. health care system; and

• Another $150 billion payment to state and local governments.

The measure also contains low-interest loans to major industries such as airlines. Major airlines have seen their passenger traffic plunge in the last week. On Tuesday, Delta Airlines’ debt was downgraded to “junk bond” status.

Rare compromise

Agreement on the bill required something that has been rare in Washington in recent years -- bipartisan cooperation. McConnell’s original bill was crafted by the Republican leaders of key Senate committees, working with the ranking Democrats on those committees.

When progressive Democrats in the House objected to the original draft, charging that it helped businesses more than individuals, McConnell negotiated with Senate Minority Leader Chuck Schumer (D-N.Y), with Treasury Secretary Steven Mnuchin joining the talks.

In particular, Democrats balked at a provision providing about $500 billion to corporations, working in concert with Federal Reserve loans. Democrats demanded more oversight on how the money is dispensed, so the legislation creates an inspector general and oversight board to control the funds.

House Speaker Nancy Pelosi (D-Calif.) has said that she is prepared to act quickly on legislation that is approved by both Democrats and Republicans in the Senate, but she acknowledged that objections from individual members of her caucus had the potential to slow final passage of the aid bill.

The outbreak of the coronavirus (COVID-19) has massively disrupted daily life for consumers, but here’s an aspect you might not have considered: disputing a charge on your credit card might be harder to do over the next few months.

MyChargeBack, a financial services company assisting consumers in resolving credit card transaction disputes, suggests that consumers shouldn’t wait to apply for a credit card chargeback. The company says there are growing concerns about how the coronavirus may impact the process.

"MyChargeBack recommends that if consumers are planning to raise disputes with their banks for goods or services not provided they should do so as soon as possible to avoid delays and disappointment," said Michael Cohen the company's vice president of operations. "There are several reasons why the system may soon become overloaded."

Missed deadlines

Think about all the vacations, cruises, and trips that have been canceled in March alone. It’s not unreasonable to believe that there will be more than the normal number of denied requests for refunds. 

Consumers who made the purchase will call their card issuer, who will then have to contact the bank hosting the merchant’s account. Any logjam in cases will likely result in delayed action.

"Should that happen, cardholders may inadvertently miss the deadlines set by the card companies for applying for their chargebacks." Cohen warned.

The credit card industry could be adversely affected by the outbreak, and Cohen says he’s already seen signs of that happening. He said Mastercard had to close its office in Sao Paulo, Brazil and an annex at its global headquarters in Purchase, New York after employees in those locations tested positive for the coronavirus. Should even one employee at an issuing or acquiring bank be identified as a coronavirus carrier, they might have to do the same.

Finally, there are likely to be millions of businesses that go under before this is all over. If one of them is the merchant with whom you have a dispute, it’s almost certain you won’t be able to resolve the issue.

Closed accounts

Even those who manage to stay in business may have to temporarily close their accounts because of the interruption in their cash flow. In that case, Cohen says there may be nothing the banks can do.

"Consumers may experience more difficulty retrieving funds from a depleted bank account or a merchant who has gone out of business and disappeared," Cohen notes.

To start the chargeback process, call the customer service number on the back of your card or on your monthly statement.