Note: This guidance was sent as a client alert on July 13, 2020 and the information is current as of that date.
Tax Extensions – July 15, 2020
Tax filing deadlines were automatically extended to July 15, 2020 for many return types due to the COVID-19 outbreak. These return deadlines will not be delayed further, and an extension will be required to grant additional time to file. If your return has not been filed yet, we will be filing extensions to avoid missing the deadline. We are still working on returns and will finish as many prior to the deadline as possible. An extension does not provide additional time to pay, so all tax liabilities should be paid by July 15th. This includes, but is not limited to, personal tax returns (1040 series), C Corporation returns (1120 series), and Not for Profit returns (990 series). The full list of returns due July 15, 2020 can be found on the IRS website.
Estimated Tax Payments – 1st and 2nd Quarter
Federal estimated tax payments for tax year 2020, originally due April 15 and June 15, are now due July 15. This means that any individual or corporation that has a quarterly estimated tax payment due has until July 15 to make that payment without penalty.
Form 1040-ES, Estimated Tax for Individuals can be used to submit tax payments. You can also visit IRS.gov/payments to pay electronically. The IRS offers two free electronic payment options where taxpayers can schedule their estimated federal tax payments up to 30 days in advance with Direct Pay or up to 365 days in advance with the Electronic Federal Tax Payment System (EFTPS).
Paycheck Protection Program – Extension
Congress passed an extension of the Paycheck Protection Program on July 1st. PPP loans can now be processed through August 8th. You can view a list of lenders on the Small Business Administration website.
Economic Injury Disaster Loan (EIDL) Advance program
The Small Business Administration announced the conclusion of the EIDL advance program. The full $20 Billion of funding has been expended. EIDL loan applications will still be processed even though the advance is no longer available. As a reminder, the loan portion of the EIDL program has a 3.75% interest rate for small businesses and 2.75% for non-profit organizations, a 30-year maturity, and an automatic deferment of one year before monthly payments begin.
Tax and Accounting Newsletter
Our firm will be launching a monthly newsletter to provide additional guidance throughout the year. It will include tax planning opportunities, bookkeeping tips, explanations of the services we offer, and other accounting and tax related guidance. If you would like to sign up for the newsletter, you can provide your information here: Caramagno + Associates Newsletter
All clients will continue to receive the actionable alerts we have been sending related to COVID-19, but the newsletter will provide more guidance year-round and be available to non-clients as well.