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HAMILTON THARP, LLP
HAS A DEDICATED COVID-19 RESOURCES PAGE
UPDATED DAILY!
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MAIN STREET LENDING PROGRAM
On Thursday, April 9th, the Federal Reserve introduced the Main Street Lending Program that will permit small and medium-sized businesses to obtain bridge financing through eligible lenders. This is the latest in a series of relief programs to address the economic challenges of the COVID-19 pandemic, and businesses that have applied and / or qualified for the Paycheck Protection Program may also take out a loan under this program. There are restrictions on the use of the loan proceeds, and the borrower must make required attestations
.
READ MORE HERE
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OPTION TO DEFER PAYMENT OF PAYROLL TAXES
The CARES Act allows employers to delay the payment of the employer's share of Social Security payroll tax, which is 6.2% of wages up to the annual wage base ($137,700 in 2020). The deferral also applies to 50% of the equivalent taxes incurred by self-employed persons.This only applies to taxes incurred from March 27, 2020, through December 31, 2020.
READ MORE HERE
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INCOME TAX DEADLINE
All Federal and California income tax filing and payment deadlines originally due between March 16, 2020, and June 15, 2020, are automatically extended to July 15, 2020, for businesses and individuals. This includes quarterly estimated tax payments. Many states are following this lead (please check with your specific state for applicable extension deadlines). There is no form required to be filed to take advantage of this automatic extension period.
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EMPLOYEE RETENTION CREDITS POSTED
The IRS on Tuesday (April 7, 2020) issued a new form and instructions (www.irs.gov/pub/irs-pdf/i7200.pdf) for employers to use to obtain advance payments of three tax credits that were created to help businesses cope with the coronavirus pandemic. Employers may file new Form 7200 (https://www.irs.gov/pub/irs-pdf/f7200.pdf), Advance Payment of Employer Credits Due to COVID-19, to obtain advances of employment taxes that are refundable as a result of the new tax credits: the employee retention credit, the qualified sick leave credit, and the qualified family leave wages credit. The qualified sick leave credit and the qualified family leave wages credit were enacted by the Families First Coronavirus Response Act, P.L. 116-127. The Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136, created the employee retention credit and provided for advance repayment of the first two credits. The IRS also issued guidance on the employee retention credit.
READ MORE HERE
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CALIFORNIA SALES AND USE TAX
California sales and use tax returns have been granted automatic extensions to file and pay. Any business with sales tax liability under $1,000,000 has until July 31, 2020, to file the first quarter 2020 sales tax returns and pay the sales tax. In addition, small business taxpayers with less than $5,000,000 in taxable annual sales can request a 12-month, interest-free payment plan for up to $50,000 of sales and use tax liability. This request can be made on-line in the coming months.
https://www.cdtfa.ca.gov/services/covid19.htm
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IRS RELEASES LINK TO TRACK YOUR STIMULUS PAYMENT
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REMINDER
Although the tax filing due dates have been extended, we strongly recommend taking the opportunity to send in your tax data so that we can complete the returns now, without the rush of an impending deadline. Please send your 2019 electronic tax package, including your organizer and supporting documents, as soon as possible. You may use the secure link at
www.ht2cpa.com
by logging into the Client Login to upload files and complete the organizer.
Please take care, and stay well. If you have any questions,
please contact us. We are here to help!
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