Current information about business, tax and financial challenges during the current Covid-19 health crisis. Covers both business and personal income tax planning and compliance and business capital challenges.
Many businesses have recently received Economic Injury Disaster Loan (EIDL) documents from the SBA. These loans can be a real lifeline for a business impacted by the current pandemic disaster. But, don’t just rush to sign the loan documents and receive the funds until you fully understand what you are signing up for.
Great news arrived last evening for all businesses who have received or plan to apply for a Paycheck Protection Program (PPP) loan. This is a much-needed update to the program and will mean more of you will be able to get more of your PPP loan forgiven. The President is expected to sign the bill into law.
Today the House passed by an overwhelming margin a bill to cut small businesses more latitude in how they use coronavirus lifeline loans. Known as Paycheck Protection Program loans (PPP). These are the loans that, when used within the rules of the CARES Act may be completely forgiven, essentially turning into a grant.
Based on the number of phone calls and emails we are receiving it is clear there is still much confusion about the Paycheck Protection Program loans. This emergency loan program was created by the CARES Act.
There are many details to the calculation and, especially calculating the forgiveness portion of the loan, so be sure that you actually read the entire law and regulations for the program or seek professional assistance. If you have questions or need help the team at Scholl & Company is here for you. You can call us at (831) 758-5966 or email us at success@schollcpa.com.
Today, the day before banks (at least precious few banks based on what we are seeing and hearing) began taking applications for Paycheck Protection Program loans. Last evening the Small Business Administration released an “interim final rule” (doesn’t sound too final with that description). The rule updated the application process with changes from previous discussions and differences from the text of the CARES Act as follows.
The Internal Revenue Service late this afternoon issued guidance (IR-2020-61) about the CARES Act economic impact payments that will be made. These are the payments to eligible individuals based on income levels. The IRS has announced that they will begin sending out the payments in the next three weeks. Here are the details.
The President just signed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). We are digesting the 880 pages of law and will be providing updates on a regular basis. In the meantime, we’d like to get some of the highlights to you.
A key business provision of the CARES Act provides for Payroll Protection loans of up to $10 million to COVID-19 impacted businesses with fewer than 500 employees.
The loans provide for the following.
Late Wednesday, the US Senate voted unanimously to advance “Phase Three” as part of the economic relief effort for COVID-19 emergency. The legislation, entitled the “Coronavirus Aid, Relief, and Economic Security Act” (the CARES Act), follows intense negotiations over the last week. Its estimated $2+ trillion price includes: immediate cash relief for individual citizens; a broad lending program for small business; extraordinary public health spending to confront coronavirus; and, targeted relief for specific industries hit hard by the pandemic.
The CARES Act is 880 pages long, consisting of several different Divisions and Titles. We’re still digesting the complex legislation and remind you that it has not yet been signed into law. It still must get through the House of Representatives. Although not yet law, we believe it is important to for our clients to be at the front end of the opportunities and changes that may become law any day.
To help keep you safe and healthy, you can securely and easily send us any documents which we may need from you for your tax returns, payroll processing or any other work. We have several options available for your use to get us your documents including secure uploads, text, picture texts, scheduled courier pick-ups, etc. Read here for the details.
Our apologies for the frequent notifications but things are changing at a rapid clip but the California Franchise Tax Board (FTB) has just announced that it is postponing until July 15 the filing and payment deadlines for all individuals, trusts, and business entities. This is a change from their announcement of last week and a welcome improvement. The additional postponement applies to the following:
This morning both President Trump and Secretary of Treasury Mnuchin have announced that both the tax return filing deadline and payment deadline will be moved forward to July 15, 2020. While automatic extensions of time to file have always been available, this move will allow some breathing room for many taxpayers. There will be no penalty for deferring your payment and no interest will accrue during this period.
This afternoon the IRS finally followed up on Secretary of the Treasury’s prior comments about some relief of penalties and interest for the late payment of taxes by releasing IRS Notice 2020-17. Individuals: Income tax payment deadlines for individual returns, with a due date of April 15, 2020, are being automatically extended until July 15, 2020, for up to $1 million of their 2019 tax due.
We have implemented our temporary office processes and procedures to comply with public health directives and social distancing requirements. Although we believe you will be better served sending us your annual tax documents electronically, we want you to know that you may still drop-off your tax documents and pick-up your final returns and original documents when necessary. Following is how the process will work to keep you safe, keep your tax-time process as convenient as possible and to ease your concerns about tax filings.
We want you to know about the following temporary operating adjustments that we are making until we are through the current public health crisis and with the shelter in place order issued today by the County of Monterey.
We are asking our team to work from home full time. Many of us already work from home on a regular, albeit periodic, basis. For many years we have been completely paperless and fully digital with all our files and all our systems securely hosted at redundant secure sites. This shift will be transparent to our clients, but we wanted to share that we are conscious of the need to do our part to protect our families, our communities and our clients.
We do have some important news to bring you on the filing of your state of California income tax returns and estimated tax payments – and no, unfortunately the Treasury and IRS have not provided any guidance at all as of the time of this email for what they plan. Be careful not to believe all you read on social media, etc. As soon as anything federally is officially implemented, we will let you know right away.
On Friday, The Franchise Tax Board (FTB) announced special tax relief for California taxpayers affected by the COVID-19 pandemic. “Affected taxpayers” are granted an extension to file 2019 California tax returns and make certain payments until June 15, 2020, in line with Governor Newsom’s March 12 Executive Order. This relief includes moving the various tax filing and payment deadlines that occur on March 15, 2020, through June 15, 2020, to June 15, 2020.
