We are facing together an unprecedented event that none of us have seen in our lifetime as a result of the COVID-19 Pandemic. Let’s rest assured we will survive this and be better for it. Many of us are already seeing new ways to do business that we did not previously consider.
Depending on your profession or industry, you may be experiencing revenue declines. This prompts tough decisions regarding business relationships with customers, employees, vendors, and suppliers. The following may be helpful as you navigate through this time of uncertainty:
- The Internal Revenue Service issued Notice 2020-18 (PDF) that extends the April 15, 2020 payment and filing deadline of certain 2019 Federal Income Tax returns and payments to July 15, 2020. This applies to returns that have an April 15 original filing date, including individual, c-corporation, trust, etc.
- This list indicates the states that have extended the filing and/or payment deadlines to July 15, 2020.
- The Families First Coronavirus Response Act (FFCRA), was passed on March 18, 2020. FFCRA provides emergency paid sick time and expands the Family and Medical Leave Act (FMLA). FFCRA applies to companies who employ less than 500 employees. Companies that employ under 50 may be able to exempt out. FFCRA provides up to 12 weeks of job projected leave pay. Employers who pay qualifying sick or childcare leave will receive a credit to be applied against payroll tax liabilities. Excess credits will be refunded. Excess credits are currently expected to be refunded by IRS within 2 weeks (more information to come on this).
- The SBA under the Federal Disaster Loan Program provides up-to $2 million of relief loans for businesses, private non-profits, homeowners and renters. Click here for guidance and how to apply. Or, consider contacting your local bank for assistance. PNC Bank is currently offering SBA loans under this program in this area.
- The State of Missouri has issued executive orders to ease burdens during this period. See specifically the Executive Order #4.
- Intuit has committed to match $1 million in GoFund Me contributions to help businesses in distress as a result of COVID-19.
- If you have real estate, equipment, or an open line of credit, most banks are working to provide interest only or payment deferral for periods. Please note if you have an SBA loan there are specific provisions for deferred payments. See the SBA Information Notice 5000-20004 dated March 10, 2020.
Congress finalized the $2 trillion Coronavirus Aid, Relief and Economic Securities Act (CARES) expected to be signed by the President tomorrow, Friday, March 26, 2020. This plan will include direct payments to individuals, extended unemployment benefits, business loan funding, and industry specific funding. We will have more information for you after the bill has been signed.
- In times like this, it’s essential you stay connected with your professional trade association who provide valuable resources and advocacy efforts on your behalf: Construction , Hospitality, Manufacturing, Legal, Church, Restaurant
- Develop a “necessities budget”, meaning adapt minimum expenditures for operations or living.
- Visit chbadvisors.com for direct web links to valuable resources as well as other information including remote work environment best practices.
Our goal is to be the trusted Advisor that helps your business survive this Pandemic. We can come out of this stronger and more flexible at managing challenges while reestablishing growth. Wise planning is necessary during this period.
For any specific questions related to these matters please contact us directly. May God Bless and Keep You during this time of crisis.
Thank you for your partnership and for the trust you’ve placed in cHb Advisors.
Stewart L. Mueller, CPA
Any tax advice included in this written or electronic communication was not intended or written to be used, and it cannot be used by the taxpayer, for the purpose of avoiding any penalties that may be imposed on the taxpayer by any governmental taxing authority or agency.