With all that has been going on the last few weeks we thought that providing an update on actual and proposed changes to filing deadlines, unemployment/sick time relief, and potential opportunities would be beneficial. Below is a brief rundown of the current items that are finalized and some things in the works regarding filing deadlines, benefits, and other items.

IRS Filing Dates

The Department of Treasury has deferred the April 15th filing deadline until July 15th for all business, personal, and fiduciary returns due that day. No extension is needed on April 15th but they are encouraging people to file earlier if refunds are due. Be aware that the guidance issued does not mention other deadlines, including fiscal year-ends with original due dates that do not fall on April 15th. Business returns that were due on March 15th have not specifically been deferred but Treasury has indicated that penalty abatement relief would be available for affected businesses. MI extended the due dates to 7/15 as well on 3/27.

IRS Payments

Payments that would have been due April 15th (2019 tax due, 2020 1st quarter estimates) have also been extended to July 15th. While this gives people an additional 90 days to pay tax due it is unclear now whether the 2nd quarter 2020 estimates will also be due on July 15th or if they will push these back. People should be aware that all three payments may be due on the same day.

Other payments due by April 15th

There IRS has just released FAQs and the HSA and IRA contribution dates have also been extended to 7/15/2020 for 2019 contributions.

The Families First Coronavirus Response Act provides benefits to employers for workers that have children out of school, are self-quarantining, or have contracted COVID-19. The relief comes in the form of reduced payroll tax payments for the wages of affected employees and there are also credits available for self-employed individuals. See the links below for FAQ and clarification guidance. An expanded FAQ was released on 3/26/20 and clarifies that a number of situations may not be eligible for sick pay relief so consult the FAQ or your employment attorney for guidance.

Paid Sick Leave

SBA Loans and Payment Deferment

The Economic Injury Disaster Loan program provides capital needed to small businesses that are affected in states where the governor has requested access to the program. The terms and rates that apply differ but contacting your banker for information is the best way see if you qualify for this program; I also have an SBA contact that is helping people navigate this process if you need a referral. Businesses that currently have SBA loans should contact their loan officer to see if they qualify for payment deferrals as soon as possible, we have clients that will begin deferring as soon as April 1st and this is one way to get some immediate cash flow relief if you qualify.

ROTH Conversions

With the decrease in market equity values it might be time to look at doing a ROTH conversion of your tax-deferred accounts (401k, IRA, SEP, etc.). While we are not able to provide investment advice we can see if you would benefit from a ROTH conversion due to your specific tax situation and recommend investment advisors to work with if you do not already have one currently.