Note: This guidance was sent as a client alert on April 15, 2020 and the information is current as of that date.
Economic Impact Payments
The IRS began issuing economic impact payments (also commonly called stimulus checks) this week via direct deposit. The IRS has not clarified how they determined what order the stimulus payments will be provided, but based on earlier reports, lower income taxpayers with direct deposit information already on file with the department are expected to receive them first.
The IRS has indicated that they will provide a portal for taxpayers that have filed tax returns to verify or provide their direct deposit and address information. The portal is expected to be available on April 17th. Once it is activated, the portal will be available at https://www.irs.gov/coronavirus/economic-impact-payments
Paycheck Protection Program (PPP) Loan Updates
As of April 13th, $248B of $349B funds available have been allocated according to the American Bankers Association. This means that additional funds will likely be needed to supplement the program. We encourage you to contact your senators and congressional representatives urging them to allocate additional funds to the PPP loans.
If you haven’t completed an application with your current bank and qualify for a PPP loan, we encourage you to pursue other options (alternative banks, etc) to increase your likelihood of receiving funds sooner.
If you have applied for and received funds from the PPP or EIDL programs, please let us know which program and which bank provided the funding.
Internal Revenue Service Processing Updates
Sunita Lough, a senior IRS executive, noted on a Tax Policy Center webcast that they are holding mail in trailers waiting for IRS service centers to open. This likely means that any correspondence to the IRS when the agency reopens following the shelter in place orders will be significantly delayed. It also makes it more important that taxpayers use fax (or email where allowed) as the first choice of communication with the IRS and if information must be mailed, that a scan copy is kept for your records and certified mail is used.
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