Responding to Small Business ConcernsMarch 26, 2020
We will soon know more about the details of the federal emergency aid package, but in the meantime, here are some other reminders of help for small business:
Tax Due Date Extended to July 15, 2020: The IRS has announced that the federal income tax filing due date for 2019 taxes has been extended from April 15, 2020 to July 15, 2020 for most taxpayers with tax liability under $1 million. Tax payments due on April 15, 2020 from all taxpayers – including corporations and individuals — will also be extended to July 15, 2020 without penalties or interest. This extension is automatic and will not require any filing to obtain unless a taxpayer is seeking an extension beyond the new July 15 deadline. According to the IRS, this extended deadline will also apply to estimated 2020 tax year payments that would ordinarily be due on April 15, 2020. Taxpayers are still urged to file before July 15, and the IRS will continue to issue refunds for eligible taxpayers. They estimate an approximate 21 day wait period to receive a refund. For more information see: https://www.irs.gov/newsroom/tax-day-now-july-15-treasury-irs-extend-filing-deadline-and-federal-tax-payments-regardless-of-amount-owed
Payroll Tax Credits for Small and Midsize Employers: As previously reported, under the new Federal Families First Coronavirus Response Act (Act), the Federal government has authorized two new refundable payroll tax credits. According to the IRS, these are meant “to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees.” This tax credit applies to employers with fewer than 500 employees to encourage them to keep employees on the payroll with paid leave for their own health needs or to care for a family member. The credit will include health insurance costs. It also applies to self-employed individuals. The bill exempts certain small businesses from the child-care leave requirement if it would jeopardize the business’ ability to continue. The bill is intended to let businesses retain and use funds for these purposes that they would otherwise have paid to the IRS for payroll taxes (including withheld federal income taxes and eligible amounts of the employer and employees share of Social Security and Medicare taxes equivalent to the amounts paid in qualified expenses ). Further guidance on this is expected to be released this week. The IRS will post additional information about this on its website at: Coronavirus Tax Relief on IRS.gov.
Other Resources to help small and local businesses respond to the economic challenges posed by this pandemic? Check out:
The US Chamber of Commerce: https://www.uschamber.com/coronavirus?es_p=11251762