Barrett CPA PC

Barrett CPA PC The firm of Barrett, C.P.A., P.C. provides competent professional auditing, accounting, tax, and consulting service in a cost effective manner.

ATTENTION ALL SMALL BUSINESSES AND NONPROFITS, INCLUDING SELFEMPLOYEDThe provision in the CARES act providing $10,000 im...
03/31/2020

ATTENTION ALL SMALL BUSINESSES AND NONPROFITS, INCLUDING SELFEMPLOYED

The provision in the CARES act providing $10,000 immediately is now available from the SBA, if you apply for the Economic Injury Disaster Loan.

You will need to report your business activities for the twelve month period From February 1, 2019 to January 31, 2020 – NOT CALENDAR YEAR 2019.

Have Bank Account Information available.

Have information on all business owners available.


EVERY SMALL BUSINESS AND NOT-FOR PROFIT SHOULD APPLY FOR THIS TODAY.

https://covid19relief.sba.gov/ #/

If you find you need assistance, or get stuck, please email us.

We will be able to help walk you through this – please email us when you have your information.

We will either email you, or call you back.

REMEMBER – THIS IS ONLY THE ACTION ITEM FOR TODAY – WE WILL FOLLOW UP.

03/28/2020

NY Governor has announced a change for tax day to July 15, but no details have been provided.

Another way of looking at this is that it is now more than 3 months and three weeks before tax day. In a normal year three months and three weeks before tax day is the last week of December. So in three days, I will be wishing you Happy (Tax) New Year!

We will be working on getting refund taxes done, as well as catching up with those of you who have not filed 2018 tax return, since that would be needed to get you your $1,200+ government check.

As guidance comes in, we will also be working on the 2 ½ times monthly payroll (or self-employment income) Grant for almost all employers or self-employed individuals.

The NY Tax website has not changed, and the Executive Order has not been published, so I will let you know when we get the details on the change in Tax Day.

03/28/2020

In true Jeopardy! fashion I will only give answers, which will save time and space (See if you can figure out the questions):

New York State has not extended any due dates at this time, but everyone has “Reasonable Cause” for any penalty abatement, should NY be so foolish as to not change due dates.

$1,200 checks should be coming in a few weeks. If your bank account, address, or family size has changed, there will be a number to call (or a website to visit) at some point in the future to make corrections.

If you have filed either 2019 or 2018 taxes or collect Social Security or Railroad Retirement, and are not a dependent, you will get a check. Otherwise please email the office.

Mortgage forbearance is not automatic. You must contact your lender.

Up to $300 donations to recognized charities, which are deductible for everyone even if they do not itemize, must be made in money – not in kind or services.

Corporations can now deduct 25% of their income for donations paid in money.

Pretty much everyone in New York State has Economic Injury.

You can withdraw up to $100,000 from pension or IRA without penalty, and without tax if you pay it back within three years.

If you are over 70 ½ you do not have to take RMD.

Not all banks are currently set up for SBA loan yet – for example, in Greene County it seems only Trustco is.

$10,000 immediate advance on the pre-existing SBA loan program is not set up at this moment. (It’s the $10,000 you get to keep even if SBA loan is rejected.)

Grant/loan of two and one half average monthly payroll is not set up yet, but expected within a week or so. Get all payroll and accounting data together.

If you already laid off employees, you should hire them back sooner than 30 days from layoff.

If you are self-employed, you can now collect Unemployment.

If your business receipts will have dropped 50% for this quarter, you may not need to make 941 deposits. Email us.

Federal Student loan non-payment for the next six months will not hurt your credit or cause you to incur extra charges.

Federal debt collection is suspended.

If not already sent, please email tax information, or mail to Barrett CPA PO Box 288 Catskill, NY 12414. If we don’t get everything we need, we will let you know.

Family, friends, and neighbors. Taxes and other filings are at the bottom of the list.

03/27/2020

Final pertinent provisions:

FEDERAL STUDENT LOANS

Federal Student loans payments suspended until 9-30-20, and no interest accrues

Monthly credit toward loan forgiveness continues, and credit reporting counts as paid

Garnishment, tax refunds seizing, and any other Federal benefit reductions ends on any involuntary collection activity

PAID LEAVE

Rehired employees are eligible employees, if laid off after 2-29-20,and had been employed for 30 of last 60 days

Waiver of employer deposit penalty if not made in anticipation of credit

PENSION PLANS

Return due dates can be extended

Contributions required to plan can be delayed until 1-1-21

SUNSCREEN

Expand and relax sunscreen ingredient requirements

Sunset sunscreen requirement relief

MUNICIPAL LOANS

Up to $454 Billion for loans or Federal Reserve purchase of loans

MORTGAGE FORBEARANCE

Federally backed mortgage loan

Up to 180 day forbearance upon request

Attest to hardship

Landlords cannot evict tenants if they have Federal backed mortgage loans

Federally backed Multifamily more than 5 units mortgage loan borrower who is current at 2-1-20 can request 30 day forbearance 3 times

PUBLIC HOUSING

$1.25 Billion for tenant based rental expense for Housing Authorities for new activities, renewal funding, operating funds and other programs

OTHER PROVISIONS

There are many interesting provisions not germane to this communication

Next step will be signing of the approved bill by the President.

I will work on putting together a more organized presentation of the 880 page ACT, and the prior 2 COVID-19 ACTS

03/27/2020

SOME MORE PROVISION OF INTEREST:

EMPLOYEE RETENTION CREDIT

50% of qualified wages are allowed, maximum $5,000/employee

Credit limited to Medicare and Social security employer match, balance is refunded

Allowed for any business or tax-exempt organizations with receipts decline of 50%, based on certain benchmarks

Based on pay to employees who did not work if over 100 employees, or all wages if employees less than 100

Apportioned qualified health plan costs are included in qualified wages

Amounts paid under new Family or Medical Leave or Paycheck Protection Program do not get counted (or rather double counted)

Limited to employee regular wages

Governmental entities do not count

PAYROLL TAX DEPOSITS DELAY

Not counting taxes forgiven or credited due to other sections of the law

Starting on date of enactment (3-27-20?) ending 12-31-20 is deferral period

50% of employer match of F**A and Med are not due until 12-31-21, 50% due by 12-31-22

For those individuals paying Self-Employment tax 50% payments are delayed - 25% not due until December 31,2021, 25% not due until December 31, 2022

NET OPERATING LOSS CARRYBACKS

Corporate NOLs for years beginning after 12-31-17 and before 1-1-21 are carried back 5 years, with certain limitations

Others have expanded provisions

OTHER PROVISIONS-ALL WORK TO TAXPAYER ADVANTAGE

Corporate Minimum Tax credit modification

Excess business interest limitation modification

Depreciation for certain assets improved

No excise tax on alcohol used to make hand sanitizer

That’s it for now. More to come later

03/27/2020

SOME MORE PERTINENT PROVISIONS OF THE CARES ACT

2020 RECOVERY REBATES

$1200 per taxpayer, $2400 per couple, plus $500 per child

Reduced for joint returns with adjusted gross income over $150,000, $112,500 for head of household, and $75,000 for single

Dependent does not get rebate

Based off of 2019 taxes, or 2018 if not filed yet, but SSA-1099 or RRB-1099 if filed neither

Paid electronically or check, based on tax return info

Letter then sent to last address to verify you got it or make corrections

Still will get money even if debts owed that would normally mean IRS keeps refund

No payments after December 31, 2020

It would seem that 2019 taxes or 2018 at least must be filed, but public information campaign will give guidance

RETIREMENT FUNDS

If suffering adverse consequences for COVID-19

Can take up to $100,000 without early withdrawal penalty

Have three years to roll over money

Tax due spreads over three years if you want

Can take extra loan from certain pension plans and add one year to normal repayment terms

2020 RMD need not be taken

DONATIONS

Individuals may deduct up to $300 cash donations, even if they do not itemize

Corporations may deduct up to 25% of taxable income – increased from 10%

EMPLOYEE EDUCATIONAL ASSISTANCE

Payment of employee student loans by employer in 2020 are allowable costs of an Educational Assistance Program, not taxable to employee, if certain conditions are met

More updates to follow. This should all be law Friday.

03/25/2020

I have been updating you on the provisions of the Senate Bill S3548. There will be changes.

Apparently alterations to the Bill have been agreed to which will swiftly pass the Senate, House, and be signed by the President. I have not been able to secure a copy of the updated bill, so I can not inform you of the improvements. Based on the discussion and debate in the Senate I believe most of the changes have more to do with large companies and health funding, not the provisions which effect small employers and individuals.

I will let you know once I have studied a complete copy of the final bill, and the related regulations have been published. If you meet certain criteria, such as being self-employed, having already laid off your workers, not having filed a 2018 tax return, not having made you 941 deposit, wanting to push off payment of already filed taxes, have a new mailing address or bank account, etc., etc., etc., you will be needing specific guidance. We will let you know as soon as the appropriate information become available.

There are also significant NYS relief provisions, such as mortgage forbearance and forgiveness for late-file sales tax. Also, although Federal income taxes are not due until July 15, New York taxes remain due April 15.

03/23/2020

I have received information indicating that New York State will conform due dates to Federal IRS date of July 15. Further information to come.
US Senate Bill is hung up -further information to come.

03/22/2020

Under the new law, currently in the Senate, but not yet passed:

DONATIONS

For fiscal years beginning after December 31, 2019 corporations may make cash donations up to 25% of their taxable income, an increase from the current 10% limit.

ESTIMATED TAXES

Nothing due until October 15.

PAYROLL TAXES

Employer F**A match for the rest of 2020 not due until the end of 2021 and 2022. Does not apply until signed into law by the President.

NET OPERATING LOSS CARRYBACKS

For 2018 and 2019 Net Operating losses can be carried back 5 years. We usually just carry these forward, but let’s think about carrying back and getting our refund. This must be done within the next four months.

DEPRECIATION

Internal renovations to your building may be depreciated over 15 years, rather than 39 years

OTHER ITEMS

There are many other technical changes which would not apply to many taxpayers, unless they are such things as foreign controlled shareholders.

REMEMBER, THE LAW HAS NOT YET PASSED, BUT IS EXPECTED TO WITHIN A FEW DAYS.

03/22/2020

REBATE CHECKS

Recovery rebates for individuals have not yet been passed, but are expected:

Tax rebate based on 2018 taxes for lesser of tax liability or $1200 ($2400 for couples) plus $500 per child, with a $600 ($1200 married) minimum. If you did not need to file 2018, 2019 will be used.

You are eligible if earned income plus social security plus pensions are over $2500, total of all gross income is over $12,400 ($24,800 for couples and $18,650 for head of household), and you had tax liability.

Rebate will be reduced if your adjusted gross income is over $75,000 ($150,000 for couples)

Payments are to come as rapidly as possible. The word is that those who used automatic deposit in 2018 will be paid that way, the rest will get checks. Process should begin within 15 days.

If you need to catch up with your prior year taxes, this needs to be done by December 31, 2020.

TAX DELAY

Tax day will be July 15, not April 15 for 2020.

April 15, June 15, and September 15 estimated taxes for 2020 are not due until October 15.

EARLY RETIREMENT WITHDRAWAL AND LOANS

You can take money out of retirement plan without 10% tax penalty, up to $100,000. If you pay this back within 3 years, you will owe no tax for the distribution. If you do not pay back, tax on the distribution will be spread over the next three years. Loans already made from your retirement plan also have favorable treatment. DO NOT TAKE MONEY OUT UNTIL THE LAW IS SIGNED BY THE PRESIDENT.

DONATIONS

Starting in 2020 individuals may deduct up to $300 of money donations, even if you do not itemize.

For fiscal years beginning after December 31, 2019 corporations may make cash donations up to 25% of their taxable income, an increase from the current 10% limit.

Address

9010 US Route 9W
Athens, NY
12015

Opening Hours

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Tuesday 9:30am - 4:30pm
Wednesday 9:30am - 4:30pm
Thursday 9:30am - 4:30pm
Friday 9:30am - 12:30pm

Telephone

+15189431400

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