3/20/20 - Important Tax and Business Updates - COVID-19

At Castellano, Korenberg & Co., we’ve been monitoring the COVID-19 Outbreak and working to keep track of new items as they develop. We would like to take this moment to provide the following updates:

IRS AND NYS 90-DAY FILING AND PAYMENT EXTENSION

As part of the relief being provided by the Federal and NYS government, the treasury department along with the Internal Revenue Service and NYS are providing special filing and payment relief to individuals and businesses in response to the COVID-19 Outbreak. The filing and payment deadline for tax returns have been extended to July 15, 2020 without incurring penalties or interest. This relief applies to all individual returns, including self-employed individuals, and all entities other than C corporations, such as trusts and estates, on up to $1.000.000 of their 2019 taxes due. For C-corporations, the same relief applies on up to $10,000,000 of their 2019 tax due.

The relief also includes estimated tax payments for tax year 2020 that are due on April 15, 2020. The IRS urges taxpayers who are owed a refund to file as quickly as possible. For those who can’t file by the deadline, the IRS reminds individual taxpayers that everyone is eligible to request a six-month extension of time to file. You will automatically be enrolled in this relief. There is no need for you to file any additional documents or contact the IRS or NYS.

For expanded technical coverage, please visit the IRS’ Coronavirus Relief page.

Federal Balances Due With Personal Tax Returns Already E-filed

For those who have already e-Filed their 2019 tax return, with a balance due scheduled to be withdrawn from their bank account on 4/15/20, taxpayers are advised to cancel e-file payment currently due by calling the US Treasury Financial Agent at 1-888-353-4537. Then go to irs.gov/directpay and reschedule a payment for 07/15/2020. We have yet to hear from NYS regarding this.

Preparers to not have permission to do this for the taxpayer.

SMALL BUSINESS INTERRUPTION LOANS

The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). For more information or to apply for a loan, please visit the SBA's COVID-19 webpage.

The government is working on pushing through a massive stimulus packages in response to the COVID-19 outbreak. Part of this includes significant funds for “small business interruption loans,” which would provide businesses with much needed cash to cover payroll over the short term, (up to six weeks), for up to $1,540 a week per employee.

REMOTE WORK FORCE, DIGITAL DELIVERY & SAFE DISTANCING

Governor Cuomo has issued an executive order that no business in New York can have any employees working away from home. At this time, the rule does not apply to essential services like supermarkets, pharmacies, medical facilities, and gas stations. We have already implemented such procedures and have had as much of our team working remotely as possible. We are asking that clients send as much of their tax documentation via electronic methods (email, portal), as possible to limit interruption due to mail receipt and sorting. We are also looking towards electronic delivery options of your returns and deliverables through our encrypted email delivery systems to further ensure a lack of interruption to client servicing.

If you have any questions at all, please contact your CK Accountant. In these times, email is the best contact method.

EXPANDED FML COVERAGE

New York State has acted quickly to expand coverage for New Yorkers impacted by COVID-19. They have expanded their FMLA coverage available. The main points are:

  • The Governor and Legislature have an agreement on a bill guaranteeing job protection and pay for New Yorkers who have been quarantined as a result of novel coronavirus.

  • Governor Cuomo signed an executive order directing all schools in New York to close by Wednesday, March 18 for two weeks ending April 1.

  • Casinos, gyms, theaters are closed until further notice.

  • Bars and restaurants are closed, but takeout can be ordered during the period of closure.

  • Strongly advise only services and businesses that are essential stay open after 8:00 PM

  • Groceries

  • Gas stations

  • Pharmacies

  • Medical facilities

  • Testing is free for all eligible New Yorkers as ordered by a health care provider.

  • Your local health department is your community contact for COVID-19 concerns.

For more details thereon, please visit the FMLA COVID-19 web page.

As always, please feel free to reach out with any and all questions. We’re doing everything to keep things operating as near normal as times will allow. Above all health and safety are paramount. Please practice CDC protocols and help work to #FLATTENTHECURVE

#tax #covid19 #smalllbusiness #FMLA #taxdeadlines2020 #Tax

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