COVID-19 CLARITY CENTER
Help for you: Individuals and Businesses
DS+B is providing daily updates on individual or business impacts due to the COVID-19 pandemic. Check back here daily for information about your tax, audit, and advisory needs as well as actions you can take proactively. Please contact your CPA directly for urgent concerns or questions. We are here to help.
MARCH 19, 2020 — COVID-19 UPDATE
Over the past few days, your team at DS+B has mobilized to continue serving you, and we are still accepting tax packets by mail as well as through our online portal. You can still call your CPA directly. Our cell phones connect directly to office lines, whether team members are working remotely or optionally in the office. We are here for you and expect to continue our service uninterrupted.
Now, here are some important updates today for individual, business tax or audit and advisory services as you navigate the impact of COVID-19. Check back to our website and social media channels for these daily updates. As always, you can contact us for assistance.
Tax Filing and Federal Payment Extension
Please note that the IRS and state tax authorities still require tax filing by the Wednesday, April 15 deadline. The recent 90-day extension to July 15, 2020, refers to individual federal tax payments owed after filing, up to $1 million in 2019 taxes owed. As of this writing, there is no change to state tax payment deadlines in Minnesota, and we are monitoring other state tax news for our clients who operate in multiple states. For C Corporations, income tax payment deadlines are being automatically extended until July 15, 2020, for up to $10 million of their 2019 tax due. This relief also includes estimated tax payments for tax year 2020 that are due on April 15, 2020. If you need an extension of time to file your taxes, DS+B can advise you or you can visit the IRS.gov site. Individual taxpayers can request a filing extension by electronically filing Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov. Businesses must file Form 7004.
For updates about state tax filing for your state, find your state tax agency at https://www.taxadmin.org/state-tax-agencies.
Business Interruption Insurance
We recently published a blog post about how your CPA can help you with business interruption insurance claims. We advise you to contact your insurance provider as soon as possible if you anticipate a business interruption in connection with COVID-19. See our blog post.
Managing Employees and Staffing
We are recommending that business owners who are impacted by partial or complete shutdown of operations to potentially continue to employ FTE employees at least 10-15 hours a week. This arrangement will supplement state emergency unemployment benefits for partially furloughed employees and support retention of your talent. Please contact us with questions or contact your state employment and economic agency about how to manage staffing on a limited scale if your business is partially or completely shut down.
Emergency Business Financing
If you are a business owner experiencing a partial or complete closure now or in the coming weeks, the Small Business Administration is offering emergency financing relief. More information is available at this link.
Paid Emergency FMLA Leave Legislation
The U.S. Senate passed legislation put forward by the U.S. House of Representatives and signed by President Trump that will require certain employers to provide paid emergency FMLA leave and paid sick time. Specific provisions relevant to covered employers include:
- Companies with 500 and fewer employees are covered by the bill.
- Employers with fewer than 50 workers could apply for an exemption from providing paid family and medical leave and paid sick leave if it “would jeopardize the viability of the business.”
- Employers may exclude employees who are health care providers or emergency responders from both sets of benefits.
- The law takes effect approximately April 2, 2020, and would sunset on December 31, 2020.
The Families First Coronavirus Response Act includes refundable tax credits for employers that are impacted. In addition, the Department of Treasury is reported to be exploring means within its administrative powers to allow small businesses the liquidity and cash flow they need to maintain operations.
We will continue to update you on this legislation and how to respond.
For continued updates on COVID-19 impacts from the IRS, you can also go to:
We hope you and your staff and loved ones remain safe and healthy. We are ready to help with any questions or concerns. Again, watch for daily updates here on our website.