As we continue to weather the maelstrom the Corona virus is whipping up, please take a moment to read our most recent updates and check out resources we’ve gathered.
We have been busy researching, reading and interpreting IRS, CT DRS, and Federal and CT Department of Labor regulations and guidance as well as preparing and filing 2019 tax returns. These are our interpretations and not official guidance. We are obtaining and disseminating information and assisting our clients in keeping their businesses and finances afloat.
However, tax season is still here, and our immediate focus for tax preparation has been those in need of their refunds. We are now somewhat back on track, with a limited staff, so please continue to drop off, mail, or send electronically your tax documents to get them in the queue. With the new deadline being July 15, we all have a little more breathing room; at the same time, we want to provide information as quickly as possible.
The official Federal and CT tax filing deadline is July 15, 2020 – NOT April 15, 2020.
1st Quarter, 2020 Federal and CT estimates are not due until July 15, 2020.
IRA and SEP contribution deadlines are July 15, 2020.
2019 Federal and State tax payments are not required to be paid until July 15, 2020.
Below are some important takeaways from recent information we have received.
From today’s Wall Street Journal: The IRS has issued guidance filling in many of the details of the historic delay in this year’s tax-filing and payment deadlines, which have been extended to July 15th from April 15th. Among other things, the agency has:
- Clarified that the deadline for making Individual Retirement Account and Roth IRA contributions is now July 15th
- Returns with automatic filing extensions are still due October 15th.
It remains unclear from the CT Department of Labor if self-employed individuals and independent contractors can receive unemployment. However, the new stimulus package, just passed, is addressing that. At this time, our advice is to submit an application and see how it goes.
CT Department of Labor has, among other programs, a shared work program. This will be useful if you need to reduce an employee’s hours so they can get partial pay from you, the employer, as well as partial CT unemployment. Click here for a good explanation.
From the U.S. Small Business Administration: Working capital loans are available for small businesses. Click here for more information.
The CT Economic Development Commission is providing short term loans for immediate cash flow – 0% interest for 12 months – balloon payment with no penalty. Email Covid19.email@example.com or call the hotline 860-500-2333.
On the Federal side, according to Families First Coronavirus Response Act, there are two new refundable payroll tax credits designed to reimburse dollar for dollar for the cost of providing COVID-19-related leave to their employees. This also is being provided to self-employed individuals. This is complex, but an immediate dollar for dollar tax offset against payroll taxes will be provided by the federal government. Guidance is not yet out regarding the process.
As a reminder, be sure to research websites such as IRS, US DOL, CT DOL, CT Economic Development and CT DRS for continuous updates and programs available and we will do our best to forward any information as we get it.
As far as MJW EA & CO, we are currently working with a skeleton staff. We don’t know how long this will be the case given the rapid movement of COVID-19. If we need to close the office completely, our goal is to work from home; but your patience is needed as the process will be much slower. We do ask, at this time, that you continue to get us your documents if you haven’t already for your 2019 returns, so that we can keep moving as best we can. Our admin team is phenomenal and is moving things along as fast and accurately as humanly possible. We assure you we will do the best we can for each and every client.
For the latest COVID-19 updates, please click here.