To our Valued MHA Clients and Friends:
I have a few updates today but nothing, yet, on the tax bill that is slowly working through Congress. I will sort that out for you as soon as it is finalized.
I do want to thank so many of you for reaching out this week. We’ve talked about options for your employees and getting creative with your small businesses. We’ve discussed interest rates and strategies for cash flow; capital gains and IRA contributions. I love consulting and these conversations have really been informative and helpful for all.
Inside our office, we are following the guidelines for “extreme social distancing”. We have reduced on-site staffing with less than 50% of our workforce in the office. We have agreed to shop infrequently and certainly not more than once/week. We are distancing in the parks and when walking our pets or playing with the kids and we are avoiding any close contact in all situations. We continue to do business, however, and we hope you all have the option to do the same.
I know that one struggle we face with remote work is the speed of internet. Some neighborhoods are truly bogged down, and providers are working to improve the situation. Please continue to be patient with us and with each other as we work through this new challenge.
Last week, Crystal sent out a notice about the SBA loan opportunity and I encourage any small businesses in Colorado to apply. This is a good safety net, even if you are not truly impacted directly by the current restrictions. There is talk of possibly forgiving some of the debt if used for certain expenses but, even if this is not forgiven, it is still a good way to aid with cash flow. It is not a quick process, however. It is a loan application so be prepared to provide personal financial information as part of the process.
Also last week we talked a little about items in the Coronavirus Relief Bill that was signed into law last Wednesday. This Bill addressed Coronavirus-related tax changes that will affect many of us. Congress is working on a huge, new coronavirus relief bill called the Phase 3 Bill or the CARES Act; however, this is not in place as of the writing of this email.
So, what is in place? We know there is an extension of time for filing and paying taxes from April 15th to July 15th. We know this covers your 2019 income taxes for individuals, corporations and trusts, however, we do not know if this includes things like IRA contributions, gift tax return filings, HSA contributions or 1st quarter 2020 estimated tax payments. We have not received any extension for 1st quarter payroll taxes or nonprofit tax returns either. Time will tell but, for now, these items have not yet been extended.
The other item that is in place is an employer payroll tax break for amounts paid by employers to employees who are forced to quarantine. Most of our small businesses are still working or have laid off employees so they can collect unemployment, however, any of you that are paying employees to stay home please let us know.
I understand that the Colorado unemployment system is extremely bogged down right now. I read this morning that the Governor has asked everyone to apply based on last name.
Please continue to reach out with questions. I don’t have a lot of the answers, but I am here to to talk through some of the issues that we are facing. We are in this together and we will come out of it together!
Kim Hitchcock, CPA
McNurlin, Hitchcock & Associates, P.C.