This checklist was prepared for our clients and friends as a quick way to identify eligible programs.
Please contact us for the details. Many of the details are not available yet from the government.
This is not meant to be an all-inclusive summary of the extensive programs.

Delays in Filing and Paying:

        Federal tax payments and returns due April 15 are delayed until July 15

        For individuals, trusts, estates, partnerships, associations, companies and corporations

        Automatically postpones all April 15th filings without a limit on amount

        Includes 1st quarter 2020 federal estimates (the 2nd quarter estimate will be due before the 1st quarter)

        Penalties and interest are waived for this 90 day period

        Includes individual, trust, gift tax, and C corporation returns

        Payments for IRA’s, HSA’s, MSA’s are also delayed until July 15

        2016 claim for refund (statute of limitation issues) is not delayed

        Most states will follow suit for a delay in payment and filing

 

Direct Payments (Rebates) to Individuals:

        Individuals with income ≤ $75,000 receive $1,200

        Married couples with income ≤ $150,000 receive $2,400

        Parents with children under age 17 receive $500 / child

        Phase-outs occur for individuals from $75,001 - $99,000 and married couples from $150,001 - $198,000

        Income is based on 2018 return unless 2019 return is filed

        Money is to be sent around April 17 (we will see!) by direct deposit if that info is available or by check otherwise

        Rebate is not subject to tax

Expanded Unemployment Benefits:

        Extra $600 / week for 4 months (in addition to state benefit)

        Maximum of 39 weeks for combined federal and state assistance

        Most states have expanded benefits

10% Penalty Waiver on Retirement Account Withdrawals:

        Up to $100,000 distributions

        Starting January 1, 2020

        Can be repaid within 3 years

Student Loans Held by the Dept. of Education:

        All payments can be suspended through 9/30/20

        0% interest will accrue

Federally Backed Mortgage Loans such as FNMA and FHLMC:

        180 day forbearance can be requested by the borrower

        No fees, penalties or interest beyond contractual amounts will be added

Above-the-Line Charitable Deduction:

        Maximum $300 during 2020

        Permitted even if you don’t itemize

Qualified Family Leave:

        Employees unable to work or telework who leave for care of a child under age 18 (school or childcare is closed)

        Wages paid April 1 to December 31

        Employed at least 30 days

        First 10 days may be unpaid with use of accrued time and sick leave benefits

        After 10 days, paid leave is required (2/3 of normal gross pay not to exceed $200 / day with a $2,000 max)

Qualified Sick Leave:

        Unable to work or telework for specific virus-related reasons

        Subject to quarantine, isolation order, advised by health provider to self-quarantine, and experiencing symptoms

        80 hours of paid sick time to full-time employees

        Part-time employees based on average hours worked over a 2 week period

        No limit for length of service

        Regular rate up to a maximum of $511 / day not to exceed $5,110 / employee

Qualified Family or Sick Leave General Rules:

        Small business (< 50 employees) exemptions are coming

        Increased by portion of qualified health plan expenses

        Increased by 1.45% Medicare tax

        Not subject to 6.2% SS tax

        Refundable tax credit if it exceeds the credit on employer’s payroll tax

        Comparable credits are offered to self-employed individuals (net earnings divided by 260 days)

Small Business (< 500 employees) Loans (Paycheck Protection Program):

        Covers employee payroll costs

        Administered by banks who are certified SBA Lenders (guaranteed 100% by SBA)

        Eligible if in operation on 2/15/20 and have employees or independent contractors

        Qualified costs include payroll, group health care, mortgage interest, rent, utilities, interest on existing debt

        Funds must actually be used from 2/15/20 – 6/30/20

        Loan is 2.5 * monthly payroll costs (over prior year) up to $10 million

        4% loan over 10 years

        Payments will be deferred from 6 – 12 months

        No collateral, personal guarantees or recourse to owners

        Loan is forgiven for proceeds used over an 8 week period for qualified costs listed above

        Employees making > $100K are not a qualified cost

        Amount forgiven is reduced if FTE employees are not maintained (2/15/19 – 6/30/19 or 1/1/20 - 2/29/20)

General Business Provisions

        Deferral of employer portion of 2020 payroll taxes (50% due December 31, 2021, 50% due December 31, 2022)

        Business interest is deductible up to 50% of Adjusted Taxable Income (was previously limited to 30% of ATI)

        The “excess business loss” limitation has been removed for tax years 2018, 2019, and 2020

Employee Retention Credit:

        Refundable payroll tax credit of 50% of wages

        Up to $10,000 / employee / quarter

        Operations fully or partially suspended or gross receipts declined by > 50% from same quarter in prior year

        Cannot use this credit and the small business loan above

        Relates to wages paid 3/13/20 – 12/31/20

Employer Payments of Student Loans:

        Tax free to the employee with a maximum of $5,250

        Paid by employer for employee

        March 27, 2020 – January 1, 2021

Net Operating Loss Expansion:

        NOL’s generated in 2018, 2019 or 2020 can be carried back 5 years

        The 80% limit on NOL’s is suspended to fully offset income

Qualified Improvement Property Technical Correction:

        100% bonus depreciation is permitted on interior improvements for non-residential property

        Retroactive for improvements after 9/27/17 filed on Form 3115 Change in Accounting

Loans to Certain Industries (the Big Winners):

        Air and cargo carriers

        Businesses critical to national security

        Hospitals

        Many government branches

Ohio Considerations:

        Ohio mirrored the delayed federal filing and payment date of July 15

        RITA, the administrator for many Ohio cities, has extended filing and payment to July 15

        Ohio Dept. of Insurance – employees with reduced hours still can have group coverage, health insurance payments can be delayed for 60 days, COBRA and continuation rules are loosened for now

        Ohio unemployment pays 50% of average weekly wage with a $118 minimum / week and a $424 maximum / week for 26 weeks

Other Considerations:

        Business interruption insurance – hard to prove claim

        Business liability insurance – are you exposing employees or clients to the virus

        Workers compensation – probably not but health care workers maybe

        Off premise insurance – have you thought about property being kept offsite now

        Stay safe!!!

SOME HELPFUL REFERENCES:

        Coronavirus Aid Relief and Economic Security Act (CARES Act) (3/27/20) https://assets.documentcloud.org/documents/20059055/final-final-cares-act.pdf

        Families First Coronavirus Response Act (3/18/20)

        IRS Notices 2020-18, 2020-20 and 2020-21

        IRS People First Initiative