03/27/2020
Dear clients and friends of Lewis, Shoffner & Co:
While our physical offices are closed, we are still working hard to stay up to date on legislative changes and be a resource during these challenging times. We’d like to highlight some of the initiatives that may be available to help you or your business through the coming months. Please keep in mind that guidance is still being released and changes are happening daily, with the largest of the stimulus packages yet to be passed into law.
1. Filing and payment deadlines for most income tax returns have been extended. All Federal income tax filings and payments that would be due on April 15 (including your first estimated tax payment for 2020) have been extended through July 15. Most state and local taxing jurisdictions are following, but keep an eye on any specific filings that apply to you and reach out to us if you are unsure of how they are being handled.
2. Businesses may now apply for SBA disaster loans to help with working capital. More information here https://disasterloan.sba.gov/ela/Information/Index
3. The Families First Coronavirus Response Act will take effect April 2, 2020 and will require businesses with fewer than 500 employees to provide paid leave for employees who are unable to work due to various COVID-19 related circumstances, including quarantine, caring for family members under quarantine, or caring for children whose day care providers are unable to operate due to shut downs. The amount of pay and duration of leave is capped depending on the reason for leave. This does not apply to workers who have already been furloughed or laid off. There will be a dollar-for-dollar employer credit to cover the cost of this paid leave that will be claimed through a combination of payroll tax filings and a separate expedited claims process. If you have a “Schedule C” business, you will be eligible for this credit as well. Guidance on this Act is still pending, but you can read the up to date details here https://www.dol.gov/agencies/whd/pandemic/ffcra-employer-paid-leave
4. Changes have been made and continue to be made to expand unemployment benefits to affected employees. The PA DOL resource page can be found here https://www.uc.pa.gov/Pages/covid19.aspx
5. Under the People First Initiative, the IRS is offering relief provisions for taxpayers in collection, delinquency, and examination status. One key item is that all payments under existing installment agreements are suspended from April 1 to July 15, 2020 (although interest will continue to accrue). More information can be found here https://www.irs.gov/newsroom/irs-unveils-new-people-first-initiative-covid-19-effort-temporarily-adjusts-suspends-key-compliance-program
Please reach out to schedule a consultation if you would like additional guidance during this time. We will continue to prepare personal and business income tax filings for tax year 2019, but will be experiencing some delays. We appreciate your patience and understanding.
Warm regards,
George & Kristin
