Updated: Apr 10, 2020
During this uncertain time, Halverson & Company is committed to serving our clients with the same level of responsiveness and professionalism. Our team will continue to work; however, our offices will be closed for the time being. If you need to send us your tax documents please consider uploading them to our secure portal. If you have mailed your information to us please let us know. Below we have provided information on recent legislation including due dates and payment extensions.
Tax credits for retention, individual stimulus checks, deferral of Federal employer taxes, abatement of early withdrawal penalties on retirement distributions, NOL carrybacks, qualified improvement property depreciation correction, lengthened unemployment coverage, and much more. A summary from the Senate bill is here.
CARES Act - SBA Loans
Please see the U.S. Chamber of Congress for more information on the Paycheck Protection Program including eligibility and how much you can borrow. The Treasury has released an information sheet for borrowers here. Updated FAQ have been released here.
Due Date Extensions
The Federal government has extended the due date from April 15, 2020 to July 15, 2020. This is an automatic extension and no forms need to be filed.
Other states have extended their due dates and a list of those states can be found here. Most state extensions will also be automatic.
Tax Payment Extensions
The Federal government has extended the payment due date from April 15, 2020 to July 15, 2020 as per IRS Notice 2020-58. This is applicable to all taxpayers (individuals, trusts, estates, and corporations, and other corporate tax filers) regardless of amount owed. This also includes estimated tax payments that are due April 15, 2020. Relief for the 2nd quarter estimated tax payment due June 15, 2020 has now (4/9/20) been pushed to July 15, 2020 as well IRS Notice 2020-23.
Other states have extended payments and a list of those states and details can be found here
Sales tax and payroll taxes may also be impacted so please review your state resources.
As this is a very fluid situation we recommend you visit the resources below that are updated on a regular basis.
Federal Payroll Tax Credits for Providing Paid Leave
IRS Notice 2020-57, Families First Coronavirus Act provides payroll tax credits for small to medium sized businesses with 0 to 500 employees to reimburse employers dollar for dollar for providing Coronavirus related leave. Employers with 50 or less employees can be exempted and this act is not applicable to employers with over 500 employees. There is a nonenforcement period for 30 days for employers to become compliant.
-SBA Loans U.S. Chamber of Commerce https://www.uschamber.com/co/small-business-coronavirus
-SBA FAQ https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequenty-Asked-Questions.pdf
-Federal - CARES Act https://www.finance.senate.gov/imo/media/doc/CARES%20Act%20Section-by-Section%20(Tax,%20Unemployment%20Insurance).pdf
Federal Economic Impact Payments https://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know
Federal FAQs https://www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers
Federal Paid Leave https://www.dol.gov/newsroom/releases/osec/osec20200320
General Tax https://www.aicpa.org/news/aicpa-coronavirus-resource-center.html
AZ https://azdor.gov/ - Conforms with Federal extended due dates and payments
CA https://www.ftb.ca.gov/ - Conforms with Federal extended due dates and payments
CA Due Dates - https://www.ftb.ca.gov/about-ftb/newsroom/covid-19/extensions-to-file-pay.html
UT https://tax.utah.gov/ - Conforms with Federal extended due dates and payments