An update for our clients…
The information below is up to date as of the afternoon of March 18, 2020. We anticipate future announcements and guidance from the Federal government and the IRS. We will send out future correspondence with any updates as they become available.
At SBF, we serve our small/medium sized businesses in an advisory role. As a small/medium sized business ourselves, we understand the stress that all business owners are going through as the impacts of COVID-19 quickly ripple through the economy. We continue to keep an optimistic outlook that the economic impact will be short-term, and will provide for a quick recovery.
Our team is constantly monitoring local, state, and federal agencies for any news that may assist our clients through this difficult time. As that news is available to us, we will communicate it to you.
Here are the recent items we are monitoring:
Tax Filings
“We encourage those Americans who can file their taxes to continue to file their taxes on April 15,” Treasury Secretary Steven Mnuchin said. “Because for many Americans, you will get tax refunds.”
- The filing date (or requirement to file an extension) for all tax returns with an original due date of 4/15/20 remains unchanged.
- The deadline to pay a tax liability due on a 2019 Individual Income Tax Return, Form 1040, if under $1M, is extended to 7/15/20.
- The deadline to pay a tax liability due on a 2019 U.S. Corporate Income Tax Return, Form 1120, if under $10M, is extended to 7/15/20.
- Regarding Estimated Tax Payments, this extension only applies to Individuals and not corporations
- There is no extension to pay if you owe more than the above amounts.
- It is expected that some states will likely follow suit regarding State Income Tax Returns; however, this has not yet been confirmed.
- We strongly encourage clients to send us their data as soon as possible so that we can continue to file on or before 4/15/20.
- The above changes has no effect on clients who have previously filed their 2019 tax returns.
State Emergency Loans
Florida Governor Ron DeSantis took a step this week to implement one measure that might offer some temporary relief to the roughly 2.5 million small businesses in Florida – activating the Florida Small Business Emergency Bridge Loan Program.
Through this loan program, which is usually activated in response to hurricanes and other natural disasters, for-profit businesses can apply for short-term loans of up to $50,000 (and up to $100,000 for special cases).
To be eligible for the program, a business must:
- employ 2-100 people
- be located in Florida
- have been established prior to March 9, 2020
- be able to demonstrate economic damage as a result of COVID-19
Businesses meeting the above criteria must apply by May 8, 2020 to be eligible for the loans, which are interest-free for one year. The state has made $50 million available for these short-term loans. More information can be found at https://floridadisasterloan.org/
Items we continue to monitor and will discuss in future communications:
- Federal disaster loans (updates expected later this week)
- Federal stimulus payments (pending)
- Payroll companies allowing use of credit cards
Our team at SBF is available to assist you through this challenging time. Please reach out to us at any time to discuss the above or any other concerns you may have – (727) 888-9200 or info@sbfcpa.com.
