Below are two links for FAQs from the New York Times and the Wall Street Journal, both of which are extraordinarily informative on the new changes being wrought upon our systems in the midst of the COVID-19 outbreak.

If you have a New York Times subscription, click here.  If you have a Wall Street Journal subscription, click here.  The New York Times article focuses on the stimulus package and all its moving parts and the Wall Street Journal is more IRS focused, with information on what is being deferred and how to prepare for the impact of these changes.

If you have any trouble opening the links, email our office at info@maryjowalker.com.

Thank you and stay safe!

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 15^th from April 15^th. Among other things, the agency has:

1. Clarified that the deadline for making Individual Retirement Account and Roth IRA contributions is now July 15^th
2. Returns with automatic filing extensions are still due October 15^th.

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.jic@ct.gov 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.

Be well,

Mary Jo

Treasury Secretary Steve Mnuchin has just announced that Tax Day will be moved from April 15^th to July 15^th, 2020.  This means everyone has an additional 3 months to file.  No extensions are required.  No penalties will be incurred; no estimated taxes for at least the 1^st quarter will incur late penalties if not paid until 7/15/2020 – we don’t know about the 2^nd quarter yet (which is normally due June 15^th).

Until further notice, we will continue with our current strategy of being open and working while utilizing social distancing strategies (no in-person meetings, document drop off, etc).

We encourage you to work on getting your documents together so we can keep the process moving.  The best method currently is to use Canopy or secured email.  Paper drop off is an option today, but the government may order all businesses to keep workers at home.  We are set up to carry on limited business from home, so barring any health issues, we will continue to move along.

For our clients who have already submitted their tax information, know that we are working diligently, but with restrictions, so there will be delays.

We will, as always, keep you up to date with what’s going on in the tax world and in our office as well, as things seem to be changing minute to minute.

Stay safe!

Friends,

In light of the unique situation COVID-19 has posed to our community and society at large, we here at MJW EA & Company LLC need to do our part in keeping ourselves and our clients healthy and safe.  We have thus instituted the following measures during the course of this pandemic:

• We are no longer holding client meetings – all communications at this point will be either via phone or email

• Drop offs of tax documents during the day can be dropped on the porch and we will pick up right away. If you drop off and we are not here, our mailbox (marked 206-A) on the street locks – simply put your documents in the top slot and it will drop to the bottom where it locks

• We will be emailing or mailing your return to you, based on your request. If we mail you your packet, we will include a self-addressed stamped envelope for you to use to return your e-file authorization form to us.

We will continue to monitor news and health department releases.  PLEASE KNOW:  Although the Department of Revenue Services has extended the filing deadline, the Federal government has, as of the writing of this, not.  As such, we continue to work toward the April 15^th filing deadline.

Please be safe and we’ll get through this together!

During the current environment of colds and flus running high, we want you to know that we at MJW EA & Company are concerned for your well-being and sensitivities around the corona virus.

We have spent much time and money this year ensuring our systems are secure.  Originally, this was mainly for cyber-security issues; now, it is more about being proactive and health conscious.

To that end, we are now encouraging our clients to utilize our various methods of sending and receiving tax documents as much as possible.  We encourage you to reach out to us remotely versus coming directly into the office.

To start, we can receive your documents via postal mail, email or Canopy.

When the returns are complete, we can:

• Mail your return to you with return, pre-addressed, pre-stamped envelopes for you to use to return any necessary signature documents to us or
• Email (or upload if you use Canopy) your documents to you.

Please call, text or email if you have any questions or concerns about your particular situation.  Our cell phone for texts is 203-859-4317.

As always, we are here to help.  Our clients – you – are very important to us and your health and safety is very important to us.  Here’s hoping for a smooth sail into the end of tax season!.