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PPP Loan Forgiveness and Terms

The government’s efforts to help businesses have resulted in generous terms for PPP loans. Borrowers can receive two and a half times their average monthly payroll costs (excluding compensation in excess of $100,000 per employee) incurred 12 months before the date the loan is made (some lenders are simply using 2019 numbers). For example, if your monthly average payroll (excluding compensation in excess of $100,000 salaries) in the last 12 months is $10,000, you may borrow up to $25,000. Additionally, you can include as payroll costs: payment for vacation, parental, family, medical and sick leave (that is not covered by another emergency loan/grant); payment for dismissal or separation; payment for group health care coverage, including insurance premiums; payment for retirement benefits and payment of state and local taxes assessed on employees’ compensation.

 

Also, you can add to your total loan amount the outstanding amount of any Economic Injury Disaster Loan (EIDL) made between January 31, 2020 and April 3, 2020, less any “advance” that is forgivable under an EIDL COVID-19 loan.

 

The money can be used for payroll (no more than $100,000 annual salary per employee) as well as benefits (including paid sick leave and insurance premiums) and taxes on compensation. Up to 25% of the loan may be used to cover mortgage interest, rent, utilities and interest on pre-existing loans.

The covered expenses have to be incurred from Feb. 15, 2020 through June 30, 2020. Businesses have to have been operating by Feb. 15, 2020.

Any portion of the loan that is not forgiven will carry an interest rate of 1.0% and is due to be paid back within two years. However, payments are deferred for the first six months. There’s no pre-payment penalty.

 

Borrowers will have their loans forgiven if they use the money for designated expenses. Participants are eligible for loan forgiveness for the amounts spent on authorized expenses over the eight weeks after receiving the loan.

 

Total payments for payroll over the eight weeks after the loan is disbursed may be forgivable. Mortgage interest, rent and utilities are also forgivable, up to 25% of the PPP loan. (Note that if your loan is forgiven, theses expenses covered by the loan are not tax-deductible, the IRS recently stated in Notice 2020-32.)

 

To get the entire amount of the loan forgiven (assuming that at least 75% is spent on payroll and the rest on permitted expenses), you must meet two criteria. First, the full-time employee head count cannot decline from average monthly levels during 2019 or during the past 12 months. If your business launched in the second half of 2019, you can use average head counts from January 1, 2020 to February 29, 2020. If your business is seasonal, you can base your monthly averages on numbers from February 15, 2019 or March 1, 2019 to June 30, 2019.

 

Second, for loans to become full grants, employers cannot cut salaries or wages. If they do, the forgiven amount will be reduced. Employers who already let workers go (between February 15 and April 26, 2020) have until June 30 to restaff.

Action Needed for Social Security Beneficiaries with Dependents and Who do NOT File Tax Returns to Receive $500 per child Payment

Act Now – Go to IRS.gov – A Message from Social Security Commissioner Andrew Saul 

Action Needed for Social Security Beneficiaries with Dependents and Who Do Not File Tax Returns to Receive $500 Per Child Payment

 

“Social Security beneficiaries and Supplemental Security Income (SSI) recipients who don’t file tax returns will start receiving their automatic Economic Impact Payments directly from the Treasury Department soon.  People receiving benefits who did not file 2018 or 2019 taxes, and have qualifying children under age 17, however, should not wait for their automatic $1,200 individual payment.  They should immediately go to the IRS’s webpage at www.irs.gov/coronavirus/non-filers-enter-payment-info-here and visit the Non-Filers: Enter Payment Info Here section to provide their information.  Social Security retirement, survivors, and disability insurance beneficiaries with dependent children and who did not file 2018 or 2019 taxes need to act by Wednesday, April 22, in order to receive additional payments for their eligible children quickly.  SSI recipients need to take this action by later this month; a specific date will be available soon.

Coronavirus-related Scams

IRS Issue Number:    COVID Tax Tip 2020-42


Taxpayers should be aware of Coronavirus-related scams


Taxpayers should be on the lookout for IRS impersonation calls, texts and email phishing attempts about the coronavirus or COVID-19 Economic Impact Payments. These scams can lead to tax-related fraud and identity theft.

Here’s what taxpayers should know:

  • The IRS will not call, email or text you to verify or request your financial, banking or personal information.
  • Watch out for websites and social media attempts to request money or personal information. The official website is IRS.gov.
  • Don't open surprise emails that look like they’re coming from the IRS or click on attachments or links.
  • Taxpayers should not provide personal or financial information or engage with potential scammers online or over the phone.
  • Forward suspicious emails to phishing@irs.gov, then delete.
  • Go to IRS.gov for the most up-to-date information.

Here’s what people should know about the Economic Impact Payments:

  • The IRS will automatically deposit Economic Impact Payments into the bank account taxpayers provided on their 2019 or 2018 tax return for a direct deposit of their tax refund.
  • Those without a direct deposit account on file may be able to provide their banking information online through a new secure tool, Get My Payment.
  • Anyone who is eligible for an Economic Impact Payment and doesn’t provide direct deposit information will receive a payment mailed to the last address the IRS has on file.
  • The IRS does not charge a fee to issue the payment.

Scammers may:

  • Ask an individual to sign over their Economic Impact Payment check to them.
  • Ask for verification of personal or banking information.
  • Suggest that they can get someone tax refund or Economic Impact Payment faster by working on their behalf.
  • Issue a bogus check, often in an odd amount, then tell a person to call a number or verify information online in order to cash it.

 

Official IRS information about the COVID-19 pandemic and Economic Impact Payments can be found on the Coronavirus Tax Relief page on IRS.gov. The IRS encourages people to share this information with family and friends. Many people who normally don’t normally file a tax return may not realize they’re eligible for an Economic Impact Payment.

Update on EIDL and PPP from the SBA

On March 29, 2020, following the passage of the CARES Act, the SBA provided small business owners and non-profits impacted by COVID-19 with the opportunity to obtain up to a $10,000 Advance on their Economic Injury Disaster Loan (EIDL). The Advance is available as part of the full EIDL application and will be transferred into the account you provide shortly after your application is submitted. To ensure that the greatest number of applicants can receive assistance during this challenging time, the amount of your Advance will be determined by the number of your pre-disaster (i.e., as of January 31, 2020) employees. The Advance will provide $1,000 per employee up to a maximum of $10,000.

You may be eligible for another loan program, the Paycheck Protection Program, which is available through participating lenders. Below is a comparison of the two loan programs:

                                 Paycheck Protection Program                  Full EIDL Loan

PURPOSE

Forgivable if used for payroll (minimum of 75% of the funds received) and the remaining for certain operating expenses (amount of any EIDL advance is not forgivable)

To meet financial obligations and operating expenses that could have been met had the disaster not occurred (amount of any EIDL advance is forgiven)

TERMS

Up to $10 million

1% interest rate

Up to $2 million

3.75% for businesses

2.75% for non-profits

FORGIVABLE

YES

NO – EIDL Loan

YES – EIDL Advance

MATURITY

2 years

30 years

FIRST PAYMENT DUE

Deferred 6 months

Deferred 1 year

 

To locate a Paycheck Protection Program Lender, please visit: www.SBA.gov/PaycheckProtection.

Information on available resources may be found at www.sba.gov/coronavirus. For more information on these services, please go to www.sba.gov/local-assistance to locate the email address and phone number for the nearest SBA district office and/or SBA's resource partners.

IRS Launches Tool to Help non-filers with Economic Impact Payments

Issue Number:    IR-2020-69

Inside This Issue


Treasury, IRS launch new tool to help non-filers register for Economic Impact Payments

IRS.gov feature helps people who normally don’t file get payments; second tool next week provides taxpayers with payment delivery date and provide direct deposit information

WASHINGTON – To help millions of people, the Treasury Department and the Internal Revenue Service today launched a new web tool allowing quick registration for Economic Impact Payments for those who don’t normally file a tax return.

The non-filer tool, developed in partnership between the IRS and the Free File Alliance, provides a free and easy option designed for people who don’t have a return filing obligation, including those with too little income to file. The feature is available only on IRS.gov, and users should look for Non-filers: Enter Payment Info Here to take them directly to the tool.

 

“People who don’t have a return filing obligation can use this tool to give us basic information so they can receive their Economic Impact Payments as soon as possible,” said IRS Commissioner Chuck Rettig. “The IRS and Free File Alliance have been working around the clock to deliver this new tool to help people.”

The IRS reminds taxpayers that Economic Impact Payments will be distributed automatically to most people starting next week. Eligible taxpayers who filed tax returns for 2019 or 2018 will receive the payments automatically. Automatic payments will also go in the near future to those receiving Social Security retirement or disability benefits and Railroad Retirement benefits.

 

How do I use the Non-Filers: Enter Payment Info tool?
For those who don’t normally file a tax return, the process is simple and only takes a few minutes to complete. First, visit IRS.gov, and look for “Non-Filers: Enter Payment Info Here.” Then provide basic information including Social Security number, name, address, and dependents. The IRS will use this information to confirm eligibility and calculate and send an Economic Impact Payment. Using the tool to get your payment will not result in any taxes being owed. Entering bank or financial account information will allow the IRS to deposit your payment directly in your account.  Otherwise, your payment will be mailed to you.

Non-Filers: Enter Payment Info” is secure, and the information entered will be safe. The tool is based on Free File Fillable Forms, part of the Free File Alliance’s offerings of free products on IRS.gov.

 

Who should use the Non-Filers tool?
This new tool is designed for people who did not file a tax return for 2018 or 2019 and who don’t receive Social Security retirement or disability benefits or Railroad Retirement benefits. Others who should consider the Non-Filers tool as an option, include:

 

Lower income: Among those who could use Non-Filers: Enter Payment Info tool are those who haven’t filed a 2018 or 2019 return because they are under the normal income limits for filing a tax return. This may include single filers who made under $12,200 and married couples making less than $24,400 in 2019.

 

Veterans beneficiaries and Supplemental Security Income (SSI) recipients: The IRS continues to explore ways to see if Economic Impact Payments can be made automatically to SSI recipients and those who receive veterans disability compensation, pension or survivor benefits from the Department of Veterans Affairs and who did not file a tax return for the 2018 or 2019 tax years. People in these groups can either use Non-Filers: Enter Payment Info option now or wait as the IRS continues to review automatic payment options to simplify delivery for these groups. 

 

Social Security, SSDI and Railroad Retirement beneficiaries with qualifying dependents: These groups will automatically receive $1,200 Economic Impact Payments. People in this group who have qualifying children under age 17 may use Non-Filers: Enter Payment Info to claim the $500 payment per child.

Students and others: If someone else claimed you on their tax return, you will not be eligible for the Economic Impact Payment or using the Non-Filer tool.
 
Coming next week: Automatic payments begin
Eligible taxpayers who filed tax returns for either 2019 or 2018 and chose direct deposit of their refund will automatically receive an Economic Impact Payment of up to $1,200 for individuals or $2,400 for married couples and $500 for each qualifying child. Individuals who receive Social Security retirement or disability benefits, SSDI or who receive Railroad Retirement benefits but did not file a return for 2019 or 2018 will automatically receive a payment in the near future.

 

Coming next week: Get My Payment shows Economic Impact Payment date, helps with direct deposit
To help everyone check on the status of their payments, the IRS is building a second new tool expected to be available for use by April 17. Get My Payment will provide people with the status of their payment, including the date their payment is scheduled to be deposited into their bank account or mailed to them.

An additional feature on Get My Payment will allow eligible people a chance to provide their bank account information so they can receive their payment more quickly rather than waiting for a paper check. This feature will be unavailable if the Economic Impact Payment has already been scheduled for delivery.

 

 

More Information on Economic Impact Payments
The IRS will post additional updates on IRS.gov/coronavirus on these and other issues.

IRS Extends More Tax Deadlines

Issue Number:    IR-2020-66

Inside This Issue


IRS extends more tax deadlines to cover individuals, trusts, estates corporations and others

WASHINGTON — To help taxpayers, the Department of Treasury and the Internal Revenue Service announced today that Notice 2020-23 extends additional key tax deadlines for individuals and businesses.

 

Last month, the IRS announced that taxpayers generally have until July 15, 2020, to file and pay federal income taxes originally due on April 15. No late-filing penalty, late-payment penalty or interest will be due.

 

Today’s notice expands this relief to additional returns, tax payments and other actions. As a result, the extensions generally now apply to all taxpayers that have a filing or payment deadline falling on or after April 1, 2020, and before July 15, 2020. Individuals, trusts, estates, corporations and other non-corporate tax filers qualify for the extra time. This means that anyone, including Americans who live and work abroad, can now wait until July 15 to file their 2019 federal income tax return and pay any tax due.

 

Extension of time to file beyond July 15

Individual taxpayers who need additional time to file beyond the July 15 deadline can request an extension to Oct. 15, 2020, by filing Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov. Businesses who need additional time must file Form 7004. An extension to file is not an extension to pay any taxes owed. Taxpayers requesting additional time to file should estimate their tax liability and pay any taxes owed by the July 15, 2020, deadline to avoid additional interest and penalties.

 

Estimated Tax Payments

Besides the April 15 estimated tax payment previously extended, today’s notice also extends relief to estimated tax payments due June 15, 2020. This means that any individual or corporation that has a quarterly estimated tax payment due on or after April 1, 2020, and before July 15, 2020, can wait until July 15 to make that payment, without penalty.  

 

2016 unclaimed refunds – deadline extended to July 15

For 2016 tax returns, the normal April 15 deadline to claim a refund has also been extended to July 15, 2020. The law provides a three-year window of opportunity to claim a refund.  If taxpayers do not file a return within three years, the money becomes property of the U.S. Treasury. The law requires taxpayers to properly address, mail and ensure the tax return is postmarked by the July 15, 2020, date.

 

IRS.gov assistance 24/7

IRS live telephone assistance is currently unavailable due to COVID-19. Normal operations will resume when possible. Tax help is available 24 hours a day on IRS.gov.  The IRS website offers a variety of online tools to help taxpayers answer common tax questions. For example, taxpayers can search the Interactive Tax Assistant, Tax Topics, Frequently Asked Questions, and Tax Trails to get answers to common questions. Those who have already filed can check their refund status by visiting IRS.gov/Refunds.

 


The Cares Act as it relates to the Self-Employed

On March 27, an emergency relief bill now known as the CARES Act became law to help bolster the U.S. economy as the country battles the coronavirus. The new law covers a broad cross-section of the economy — including the freelance sector. Of particular note, the relief package gives jobless workers bigger unemployment checks over a longer period of time, including freelancers and the self-employed, who are typically excluded from collecting these benefits.

Here’s what freelancers can expect to receive in terms of financial relief under this new law:

 

Unemployment Insurance

 

· All self-employed workers, contractors, government employees, individuals seeking part-time work, and workers who quit their job or can’t reach their place of work as a result of COVID-19 are among those eligible for unemployment benefits.

 

· The law allows individuals to claim unemployment benefits for an extended period of time (up to four months) and waives the typical one-week waiting period to start receiving benefits.

 

· Weekly unemployment benefit payouts are increased by $600.

 

· The law revives the “Emergency Unemployment Compensation” program for 13 additional weeks on top of states’ standard programs, meaning that if your state’s usual benefit period for unemployment payments is 26 weeks, you could receive up to 39 weeks with this federally funded extension.

 

· Federal funds will be distributed to state unemployment agencies, and all benefits will be administered through your state. If you have not yet done so, submit your application to your state's unemployment assistance program now. Each state may require different supporting documentation; find your state and its requirements here.

 

One-time Stimulus Payment

 

· On an individual basis, freelancers are eligible to receive a direct cash payment of up to $1,200 for each adult ($2,400 for couples), as well as $500 for each child if they meet the income limit of $75,000. People with no federal tax liability will receive only $600. It is anticipated that checks will be cut April 6.

 

· The individual checks start to phase out from $75,000 to $99,000 ($150,000 to $198,000 for couples filing jointly) in adjusted gross income based (AGI) on 2019 income tax returns. (Your 2018 returns will be used to calculate your AGI if the more recent information is not available). Ultimately, the package will be “reconciled after the fact” with your 2020 earnings, meaning if you earn more or less this year, you may have to pay back some of the relief money or get a bigger rebate next year.

 

Other Relief

 

· The law allows corporations to delay estimated tax payments until October 15, 2020. Self-employed people can also delay payroll taxes.

Disability insurance for freelancers

 

· In addition, the Department of Education is suspending student loan payments until September 30, 2020 without penalty.

The Paycheck Protection Program May Help Freelance Businesses

 

Another element of the CARES Act is the Paycheck Protection Program. Under this program, the Small Business Administration (SBA) will distribute $350 billion in small business loans that can be partially forgiven if companies meet certain requirements. The objective of the program is to provide up to eight weeks of cash-flow assistance through 100 percent federally guaranteed loans.

 

Here are the key points about the Paycheck Protection Program:

 

· The program is expected to be enacted no later than two weeks from the date the CARES Act was signed into law.

 

· The program is retroactive to Feb. 15, 2020. This is to help bring workers who may have already been laid off back to work.

 

· The loans are only available to companies with 500 or fewer employees that were in business on Feb. 15, 2020. This includes freelancers, independent contractors, and sole proprietorships.

IRS: Employee Retention Credit available for many businesses financially impacted by COVID-19

Issue Number:    IR-2020-62

Inside This Issue

 

WASHINGTON — The Treasury Department and the Internal Revenue Service today launched the Employee Retention Credit, designed to encourage businesses to keep employees on their payroll. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19.

Does my business qualify to receive the Employee Retention Credit?

 

The credit is available to all employers regardless of size, including tax-exempt organizations. There are only two exceptions: State and local governments and their instrumentalities and small businesses who take small business loans.

 

Qualifying employers must fall into one of two categories:

 

The employer’s business is fully or partially suspended by government order due to COVID-19 during the calendar quarter.

The employer’s gross receipts are below 50% of the comparable quarter in 2019. Once the employer’s gross receipts go above 80% of a comparable quarter in 2019, they no longer qualify after the end of that quarter.

These measures are calculated each calendar quarter.

 

How is the credit calculated?

The amount of the credit is 50% of qualifying wages paid up to $10,000 in total. Wages paid after March 12, 2020, and before Jan. 1, 2021, are eligible for the credit. Wages taken into account are not limited to cash payments, but also include a portion of the cost of employer provided health care.

 

How do I know which wages qualify?

Qualifying wages are based on the average number of a business’s employees in 2019.

Employers with less than 100 employees: If the employer had 100 or fewer employees on average in 2019, the credit is based on wages paid to all employees, regardless if they worked or not. If the employees worked full time and were paid for full time work, the employer still receives the credit.

 

Employers with more than 100 employees:  If the employer had more than 100 employees on average in 2019, then the credit is allowed only for wages paid to employees who did not work during the calendar quarter.

 

I am an eligible employer. How do I receive my credit?

Employers can be immediately reimbursed for the credit by reducing their required deposits of payroll taxes that have been withheld from employees’ wages by the amount of the credit.

 

Eligible employers will report their total qualified wages and the related health insurance costs for each quarter on their quarterly employment tax returns or Form 941 beginning with the second quarter. If the employer’s employment tax deposits are not sufficient to cover the credit, the employer may receive an advance payment from the IRS by submitting Form 7200, Advance Payment of Employer Credits Due to COVID-19.

 

Eligible employers can also request an advance of the Employee Retention Credit by submitting Form 7200.

 

Where can I find more information on the Employer Retention Credit and other COVID-19 economic relief efforts?

Updates on the implementation of this credit,  Frequently Asked Questions on Tax Credits for Required Paid Leave and other information can be found on the Coronavirus page of IRS.gov.

5 Ways to keep Coronavirus from Stopping Work at your Small Business

By Danielle Higley March 22, 2020 (from Intuit - QuickBooks)

 

 

Amid the uncertainty surrounding COVID-19, there have also been moments of brightness. Citizens making music together from their balconies in Italy. People braving the supermarket to buy staples for elderly neighbors. Athletes donating money to hourly workers and staff whose jobs are in limbo.

 

Among the bright spots are the inspiring ways small businesses are getting creative to keep offering their goods and services. Notable examples include restaurants offering curbside pickup, fitness centers hosting virtual workout classes, and local retailers delivering purchases. Here are a few more ideas for small businesses looking for alternative sales avenues.

 

1. Reinvent your business

If you’re a brewery like Griffin Claw Brewing in Birmingham, Michigan, you probably never thought you’d be in the hand sanitizer business. And yet, that’s what dozens of breweries like Griffin Claw are doing. It’s a great lesson in creative thinking when facing business constraints.

 

Look around your space and reimagine what it could be. Maybe you can turn your kitchen into a community kitchen and focus on food delivery to the elderly. Or perhaps you can clear a space to sew masks for healthcare workers. Some of these efforts might go unpaid, but doing good work builds a positive reputation. And it’s possible some of the people you help now become your best customers later.

 

If you’re at a loss for ideas, reach out to the people who know your business best. You can still meet an employee over a video conference for a coffee and a brainstorm, even if you can’t meet in person.

 

2. Connect with clients virtually

Service-based businesses, in particular, may find it challenging to stay open while close contact is discouraged. But take a cue from the healthcare field: It’s been adapting a digital model for years. Telehealth connects patients with healthcare professionals by holding video consultations and monitoring well-being remotely, according to the American Hospital Association. Telehealth services include mental health services, occupational therapy, and medical consultations.

 

When in doubt, think like a doctor. What services could you offer via video chat, livestream, or phone? There are plenty of ways businesses can adapt their services to virtual offerings.

 

3. Consider (or reconsider) e-commerce

Maybe you’ve tried selling inventory online, or perhaps the thought of opening an online store is new. Don’t think about selling your products online as a way out of financial hardship right now. Think of online sales as a chance to build out an additional revenue stream that will serve your business for years to come. Check out these tips for getting your business online quickly and this list of online marketplaces that can help.

 

4. Host your own planning retreat

Not everyone can keep their doors wide open during the evolving coronavirus situation. New York, for example, is requiring nonessential businesses to keep their workers at home and other businesses to close completely. And New York isn’t the only state considering measures that affect businesses.

 

If your business can’t keep its doors open, use this time to think about how to grow and pivot your business. Many business owners wish they had time to think about marketing or evolve their business plan. But normally, they’re too busy to do so. Now is your chance to make detailed plans for the next month and year.

 

5. Take some inspiration from others

Business owners from coast to coast are up against similar challenges because of the coronavirus. The good news is a lot of them are sharing whatever secrets they find for moving forward during this time. Keep communication channels open and use social media to see how others are responding. You might even participate in online forums to find more options, then adapt your business as you can.

 

Share your creative solutions or ask others for suggestions for your business in the QuickBooks Community. Just remember—your community is rooting for you.

 

—–

 

This content is for information purposes only and information provided should not be considered legal, accounting or tax advice, or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Intuit Inc. does it have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. Intuit Inc. cannot warrant that the material contained herein will continue to be accurate, nor that it is completely free of errors when published. Readers should verify statements before relying on them.

Congress Passes COVID-19 Relief Package

Congress Passes COVID-19 Relief Package

On March 18, 2020, the Senate approved the Families First Coronavirus Response Act (“FFCRA” or the “Act”), an emergency relief bill that aims to provide financial support for individuals who have been affected by the ongoing global 2019 Novel Coronavirus (“COVID-19”) pandemic. The House initially passed the FFCRA in the early hours of the morning on Saturday, March 14, and later approved a number of changes to the bill through a technical corrections bill. President Trump has indicated that he “fully support[s]” the legislation and is expected to sign the bill shortly.

 

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Updated Guidance for Employers Issued by Federal, State, and City Agencies

Coronavirus: Updated Guidance for Employers Issued by Federal, State, and City Agencies

In the days since our prior Client Memorandum dated March 10, 2020, the public health situation in the United States and the world at large has continued to change rapidly and dramatically. On March 11, 2020, the World Health Organization (the “WHO”) declared COVID-19 a pandemic, pointing to the troubling level of spread and severity of the virus. Since then, numerous states and localities have closed schools, bars, restaurants, museums, theaters, libraries, and other public places.

 

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COVID-19: Layoff and Furlough Considerations for Employers

COVID-19: Layoff and Furlough Considerations for Employers

In light of the significant economic impact of the COVID-19 pandemic on businesses, this Client Memorandum addresses the legal considerations for employers and certain employee protections in connection with reductions of employee headcount and/or services.

 

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Economic impact payments: What you need to know

Check IRS.gov for the latest information: No action needed by most people at this time

WASHINGTON – The Treasury Department and the Internal Revenue Service today announced that distribution of economic impact payments will begin in the next three weeks and will be distributed automatically, with no action required for most people. However, some seniors and others who typically do not file returns will need to submit a simple tax return to receive the stimulus payment.

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Families First Coronavirus Response Act

Families First Coronavirus Response Act

1 page summary – Employee Rights

EMPLOYEE RIGHTS

PAID SICK LEAVE AND EXPANDED FAMILY AND MEDICAL LEAVE UNDER THE FAMILIES FIRST CORONAVIRUS RESPONSE ACT

 

 

The Families First Coronavirus Response Act (FFCRA or Act) requires certain employers to provide their employees with paid sick leave and expanded family and medical leave for specified reasons related to COVID-19. These provisions will apply from April 1, 2020 through December 31, 2020.

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CARES Act Section By Section

Full Text of CARES Act

DIVISION A – KEEPING WORKERS PAID AND EMPLOYED, HEALTH CARE SYSTEM ENHANCEMENTS, AND ECONOMIC STABILIZATION

 

TITLE II—ASSISTANCE FOR AMERICAN WORKERS, FAMILIES, AND BUSINESSES

 

Subtitle A—Unemployment Insurance Provisions

 

Section 2101. Short Title

This title is called the Relief for Workers Affected by Coronavirus Act

 

 

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Paycheck Protection Program FAQs for Small Businesses

Paycheck Protection Program FAQs for Small Businesses

From Kenneth Hoffman of K.R. Hoffman & Co. LLC

 

Where can I apply for the Paycheck Protection Program?

 

 

You can apply for the Paycheck Protection Program (PPP) at any lending institution that is approved to participate in the program through the existing U.S. Small Business Administration (SBA) 7(a) lending program and additional lenders approved by the Department of Treasury. This could be the bank you already use, or a nearby bank. There are thousands of banks that already participate in the SBA’s lending programs, including numerous community banks. You do not have to visit any government institution to apply for the program. You can call your bank or find SBA-approved lenders in your area through SBA’s online Lender Match tool. You can call your local Small Business Development Center or Women’s Business Center and they will provide free assistance and guide you to lenders.

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Small Business Tax Relief from COVID-19

Small Business Tax Relief From COVID-19

From Kenneth Hoffman of K.R. Hoffman & Co. LLC

 

The nearly 900-page CARES act, signed this week by the President, can overwhelm small businesses and their advisers. But the new law provides small businesses with shockingly large tax breaks, attractive loan programs and just generally speaking “free money.”

 

 

Accordingly, I thought I’d point out and then briefly discuss the new law’s tax breaks for small businesses.

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Small Business Guidance and Loan Resources

COVID-19: Small Business Guidance and Loan Resources

From the U.S. Small Business Administration

 

On Monday, U.S. Small Business Administration Administrator Jovita Carranza announced changes to help borrowers still paying back SBA loans from previous disasters. By making this change, deferments through December 31, 2020, will be automatic. Now, borrowers of home and business disaster loans do not have to contact SBA to request deferment.

 

To that end, the SBA is relaxing the criteria through which states or territories may formally request an economic injury declaration, effective immediately. 

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Update Re: Installment Agreements

Clients on Installment Agreements Can Temporarily Postpone Payments

From Kenneth Hoffman, KR Hoffman & Co. LLC

 

These new changes include issues ranging from postponing certain payments related to Installment Agreements and Offers in Compromise to collection and limiting certain enforcement actions. The IRS will be temporarily modifying the following activities as soon as possible; the projected start date will be April 1 and the effort will initially run through July 15. During this period, to the maximum extent possible, the IRS will avoid in-person contacts. However, the IRS will continue to take steps where necessary to protect all applicable statutes of limitations.

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Update on IRS Services

Update on IRS Services

Notice from the Internal Revenue Service

 

Due to staff limitations, Practitioner Priority Service line, the e-Services Help Desk line and the e-Services FIRE and AIR system help desks are closed until further notice.

 

Please make IRS.gov your first option for answers to questions.

 

We are temporarily suspending acceptance of new Income Verification Express Services (IVES) requests at this time and are experiencing delays with existing IVES processing as well as CAF number authorizations.

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COVID-19 Small Business Tax Relief

COVID-19 Small Business Tax Relief

From Kenneth Hoffman, KR Hoffman & Co. LLC

 

The details in the CARES act, recently passed by the Senate and presumably soon to be passed by the House, continue to trickle out. But I thought I’d point out and then briefly discuss the parts that benefit small businesses.

 

 

I’ll try to keep this page up to date as things come into better focus and as the House makes any of its changes.

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COVID-19 Tax Credits Available Now

COVID-19 Tax Credits Available Now

 Small and midsize employers can begin taking advantage of two new refundable payroll tax credits designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing COVID-19-related leave to their employees. This relief to employees and small and midsize businesses is provided under the Families First Coronavirus Response Act (Act).

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IRS Unveils People First Initiative

IRS unveils new People First Initiative; COVID-19 effort temporarily adjusts, suspends key compliance programs

From the IRS Newswire:

 

 

WASHINGTON – To help people facing the challenges of COVID-19 issues, the Internal Revenue Service announced today a sweeping series of steps to assist taxpayers by providing relief on a variety of issues ranging from easing payment guidelines to postponing compliance actions.

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Important Notice from the Internal Revenue Service

Treasury, IRS and Labor announce plan to implement Coronavirus-related paid leave for workers and tax credits for small and midsize businesses to swiftly recover the cost of providing Coronavirus-related leave

WASHINGTON – Today the U.S. Treasury Department, Internal Revenue Service (IRS), and the U.S. Department of Labor (Labor) announced that small and midsize employers can begin taking advantage of two new refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees. This relief to employees and small and midsize businesses is provided under the Families First Coronavirus Response Act (Act), signed by President Trump on March 18, 2020.

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Coronavirus/COVID-19 and Taxes

Important Information About Coronavirus/COVID-19

We've been getting a lot of calls and emails regarding the current Coronavirus pandemic and how it affects taxes. We are re-posting the excellent article below, written by Ken Hoffman of KR Hoffman & Co., to help educate our clients and the public in general. Special thanks to Ken for putting this information together.

 

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