As you are aware, we are experiencing trying times. We want to reach out to you to let you know what we are doing for you, as well as what might be available out there to assist your business today and tomorrow. The future items will become clear once our vaunted elected officials stop class warfare and get to work.
As you are probably aware, the IRS has extended tax filing dates for individuals to July 15—an additional 90 days. Further, for those with balance dues, payment due dates are extended as well without incurring interest and/or penalties. We will focus on those with tax refunds as our first priority.
We are essentially closed to the public. We are still in the office working but we think it best to limit contact with the outside world for both our safety, as well as yours. However, we will be available at any time as needed to process ongoing tax and financial matters. This may be related to pick up or drop off of data and/or processing tax returns, payrolls, etc. We believe it would be best to schedule if at all possible any in-person meetings. This will allow us to disinfect premises etc between meetings. Again, we will put our primary focus on those clients with tax refunds.
Next, we want to address where financial assistance is currently available. To those of you that have bank debt, we would encourage you to contact the bank to inquire as to possible deferrals. I am certain that banks will consider this and perhaps have reached out to you already. In addition, there are SBA Disaster loans available. We understand these loans will be at loan interest rates, with long term amortization payback periods. As these loans will be guaranteed by the government, we believe the banks will have an interest in doing so. Again, we would suggest you contact your lender.
For those of you who may have approved paid family leave for employees (this is only required for employers with over 50 employees), you will likely be allowed to obtain reimbursement for these unproductive payrolls via a credit towards your quarterly Form 941 payroll tax filings. If we prepare those, we would need such information.
For those of you that have Business Interruption Insurance, I encourage you to reach out. You may find out that this is not covered, however, you won’t know for sure unless you contact them.
Finally, it appears likely that there will be US Government loans and/or grants to avoid financial calamity such as 2008. As we gather this information when and if Congress grows up—we will keep you apprised.
3/24/2020 – UPDATE ON GOVERNMENT LEGISLATION
Firstly, we must correct an error in the above information as regards paid leave and sick pay. Specifically, as against all reason, the new regulations enacted on March 18, 2020, specifically EXCLUDE business with OVER 500 employees only. As with all regulations they are complicated with detail. Below are a couple of links to summaries that will allow you to interpret your particular situation.
- IR-2020-57
- Families First Coronavirus Response Act: Employee Expanded Family and Medical Leave Rights
It appears that those of you that heretofore did not have paid sick leave and/or family leave are now required to do so. Please take the time to review these regulations. You will notice some employers with less than 50 employees MAY be exempt. We will all have to wait for future pronouncements.
Just what everyone needs—more regulation—these are trying times—let us all hope for a short duration of the regulations and the virus.