Happy Friday to all of you! It is April 10th and we have a few updates for all of you this week.
First, I would like to say that we hope you are all staying healthy and safe and continuing to find something to put a smile on your face every day. At MHA, we continue to find ways to balance the needs of our clients, our kids and ourselves as we navigate these new waters. We love to hear from our clients so please continue to reach out, even just to say “hi”!
The IRS says stimulus payments are scheduled to begin next week, starting with people who have filed tax returns for 2018 or 2019 and have authorized direct deposit. Social security beneficiaries will also receive payments automatically “in the near future” according to the IRS website.
The IRS has created a web portal for non-filers to enter payment information. For anyone who is not required to file a tax return, you can go to irs.gov and click on the link for non-filers. Click on the 2nd button that says Non-filers: Enter payment Info and it will take you to a link to submit your information to get the Economic Impact Payment.
Breaking news: The IRS issued Notice 2020-23 yesterday which extends/postpones more filing deadlines for individuals and businesses. This notice generally applies to all taxpayers that have a filing or payment deadline falling on or after April 1, 2020 and before July 15, 2020. Individuals, trusts, estates, corporations, non-profit organizations , and other non-corporate tax filers qualify for the extra time. This delay also applies to your 2nd quarter estimates which were formerly due on June 15th. They, and all income tax return filings, are now due on July 15th.
As part of the additional postponement, you can also have an extra 3 months to file your 2016 tax return and claim a refund. This is for anyone who hasn’t yet filed 2016. Refunds are typically only available for 3 years but, this year, you have an extra 3 months so please email or call if you fall into this situation and let us help you get caught up!
On a side note, the IRS is not taking phone calls currently. The recorded answering service reports that normal operations will resume when possible but, currently, the only way to reach the IRS is through tools available on their website.
I have a couple of reminders from last week as well. First is the reminder that the State of Colorado postponed the payment due date for your property taxes and sales taxes. No penalty and no interest! Sales tax payments that were due on April 20th are now due May 20th. Property taxes that were due in April are now due April and June.
Second is that scams are extremely prevalent right now. I’ve heard of emails and phone calls asking for money from your “favorite grandson” and I’ve also seen emails where they are asking you to confirm your loan submission documents by “clicking here”. Please be vigilant and don’t fall for these scams.
As you’ve probably heard, the PPP or Paycheck Protection Program Loans are still out there amid the chaos of the difficult rollout process. If you have decided to pursue funding under PPP, it’s recommended that you apply quickly. Beginning April 3, 2020, small businesses and sole proprietorships were permitted to apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders. Starting April 10, 2020, independent contractors and self-employed individuals can apply. Currently there is a limit of $349B of funds available for this program and it looks like discussion about additional funding has stalled in Congress. Other regulated lenders will be available to make these loans as soon as they are approved and enrolled in the SBA program. Lenders are paid a lender processing fee which is a percentage of the loan amount so there are a lot of potential lenders competing for your business. Talk to your bank or any banks in the area or consider applying online with one of the lending programs. Visit the SBA website for a list of potential lenders but be sure to only submit documents to verified lenders and call or email if you need any assistance with the process.
The EIDL is still out there as well. Lei Yang, one of our senior tax staff members, was able to reach someone at the SBA yesterday by phone to ask about the EIDL process. Lei found out that they are clearly working hard to process the applications in order and the SBA staffer was kind but said there was no way to find out where someone was currently sitting in the process.
Please continue to reach out with questions. I am happy to talk through some of the issues that we are facing as we move forward and through this crisis and your calls and emails are giving me good ideas for these update emails!
Take care and stay strong,
Kim Hitchcock, CPA
McNurlin, Hitchcock & Associates, P.C.