We hope you are all hanging in there during this stressful time. My staff is working hard to ensure as little disruption as possible, and we want to keep you updated to changes which may affect you.
In response to the many questions generated by the postponement of the April 15th filing deadline, the IRS has published a Filing and Payment Deadlines Questions and Answers page.
Some of the answers given include:
- Yes, the postponement applies to all income tax returns due on April 15th, including those for fiscal years where April 15th is the extended due date.
- No, the postponement does not apply to estate and gift tax returns.
- No, the postponement does not apply to any other filing due dates.
- Yes, the date by which to make an IRA contribution is postponed.
- The automatic extension of time to file to October 15, 2020 must be filed by July 15, 2020 with the estimated amount of tax due to be paid at that time.
- Second quarter estimates remain due on June 15, 2020 though the first quarter estimate is due July 15, 2020.
- Payments scheduled for auto-pay on April 15 will not be automatically rescheduled for July 15. Review the FAQ for specifics on how to modify or cancel payment.
Additionally, as you may know, Congress has passed an historic $2 Trillion Stimulus Package. The CARES Act contains a number of provisions aimed at granting temporary regulatory relief.
The bill includes:
- Direct payments to taxpayers. Payments will start to phase out for individuals with adjusted gross incomes of more than $75,000, and those making more than $99,000 would not qualify at all. The thresholds are doubled for couples.
- Federal Unemployment benefits extended for four months on top of State Unemployment benefits; additionally includes benefits for freelancers, furloughed employees, and gig workers.
- Small businesses can receive emergency loans if they keep their workers. Included in the CARES Act is a $350 billion Paycheck Protection Program that will allow businesses and nonprofits with fewer than 500 employees to apply for loans up to $10 million each to cover losses caused by the COVID-19 pandemic. Click here for the U.S. Small Business Administration loan page. In certain circumstances the loans may be forgiven.
New York City Small Business Grants and Loans
You should also be aware that NYC is offering zero interest loans up to $75,000 for small businesses demonstrating at least a 25% decrease in revenue (NYC Small Business Continuity Loan Fund), as well as an Employee Retention Grant Program for small businesses with fewer than 5 employees. Application details can be found on the Grant Program web page.
Some of my clients have begun to apply and tell me the process is straight forward but time consuming. If you need help processing these applications, my firm is prepared to offer these services as well.
We’re wishing you all well and thank you for your patience as we adapt to working offsite. None of this has been easy for anyone. Take care of yourselves and keep practicing social distancing.