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COVID-19 Updates

May 29th: 

The SBA and Treasury have released a PPP loan forgiveness application. 

You can access the application here. Even if you still have several weeks before you need to apply for loan forgiveness, it would be a good idea to take a look at the information that you will need to provide so that you can be prepared when the time comes.

May 22nd: 

Some taxpayers may recieve their Economic Impact Payments through a Prepaid Debit card. 

If you receive one of these cards, do not throw it away, it is not a scam. The IRS has confirmed that they will be sending out a small portion of the Economic Impact Payments using this method. According to the FTC, if you get your payment in this form, the envelope wil be from "Money Network Cardholder Service" and the cards will be VISA-branded prepaid cards issued by MetaBank.

The cards will need to be activated to be used, and the mailer should give you instructions on how to do this. You can go online here to get help if you have trouble using the card.

See this handy guide from the Consumer Financial Protection Bureau for more tips on how to use the cards and avoid paying fees for accessing, cashing or transferring the funds. They even explain how to get some of the money issued as a check if you need to pay something like rent that will not take a debit card.

The IRS has not been clear about who is likely to get these cards vs. getting a check, but it does look like direct deposit will still be the default for all taxpayers who have provided them with bank information.

Remember though, than unless you've asked for assistance, no one will ever call you about the EIP card. And no one will text, email, or ask you to click on a link they sent to activate this card or to get your money. If someone does, it's a scam. 

April 17th:

Action may be needed to recieve your economic impact payment:

If you do not normally file a tax return, and cannot be claimed on someone else's tax return, you can go here to provide basic tax information to get your economic impact payment. If you receive social security benefits, you do not need to provide any more information to get the payment (unless you have a dependent child under age 17- then you need to fill out the form to get an extra $500 for each child).

The new IRS web app is now available here that will allow taxpayers who have not provided direct deposit information on their last filed tax return to enter bank information for direct deposit of their economic impact payment. If the IRS does not have direct deposit information at the time of processing your payment, they will mail a check to the last known address they have on file for you.

This app will not allow taxpayers to update direct deposit information that has already been provided. Nor will it allow for direct deposit information to be added after the payment has been sent.

If you have changed bank accounts since you last filed a return, don't panic. If your account is closed, the IRS will simply issue a paper check.

If you have both moved and changed bank accounts since you last filed your 2018 return, the only way to update your information for the payments is to file your 2019 tax return.

April 7th:

The application form for a Paycheck Protection Program loans is now available. To see what information is required and to prepare for applying with an SBA approved lender Preview it here.

The SBA has resources for finding a participating lender here.

The Department of the Treasury has also put together a borrowers guide to the program here.

April 2nd:

Economic Impact Payments: What you need to know

US Chamber Commerce resources for small businesses

Important New Credits and Tax Provisions for Small Businesses
 
The recent Families First Coronavirus Relief Act (FFCRA) and the Coronavirus Aid, Relief, and Economic Security (CARES) Act, contain a number of provisions that may be helpful for your business during these challenging times.
 
We have summarized many of the most prominent features in these bills that you many want to take advantage of below. Some of these items are still awaiting detailed guidance on implementation, and we will continue to provide updates on them through our website and emails as we receive more information.
 
The MN DEED website also has an excellent factsheet describing the various resources available to small businesses.
 
 
New paid sick leave requirements- and credits to reimburse the associated expense:
 
  • The FFCRA requires many employers to provide 2 weeks of paid sick leave and up to 10 weeks of paid expanded family and medical leave to their employees who have been impacted by COVID-19.
 
  • The government will reimburse you 100% through refundable payroll tax credits for all wages paid under this regulation.
 
Read more about sick leave
 
Forgivable loans available through the Paycheck Protection Program:
 
  • Eligible small businesses can receive subsidies for up to 8 weeks of payroll costs in order to keep paying their employees and to cover some other specific expenses.
 
  • The loans are forgivable to the extent that the funds were used for the intended purposes, and provided that the employer does not lay off their workers.

Read more about the Paycheck Protection Program here

 

Employee Retention Credit

  • This credit is available for employers who have either had to reduce operations due to COVID-19 shut downs or who have lost at least 50% of their income.
 
  • The credit covers 50% of certain employee wages (up to a maximum of $5000 per employee) to help employers keep their employees on their payroll.

Read more about the Employee Retention Credit

 

Delayed payment of payroll taxes

  • To help small businesses in need of immediate cash flow, the government is allowing for deferral of the employer portion of payroll taxes until the end of the year, though there are a few exceptions.

Read more about delayed payment of payroll taxes

 

Other busiess tax law changes that may be of interest

The CARES Act also made a number of changes (some retroactive) to the tax law. Some are specifically targeted to help with the COVID-19 pandemic, and some are technical corrections to previous bills.

Learn more about business tax law changes

 

March 25th:

The IRS has clarified that the extended deadlines for filing mean that IRA and HSA contributions for 2019 may also be made up until July 15th.

 

March 25th:

With the COVID-19 outbreak, we are continuing to provide services while at the same time working to understand all of the changes that are taking place.  While we will continue to send updates and provide information, the following is a list of links to primarily tax and other government related information that has been posted related to COVID-19.  Please continue to check these sources for ongoing updated information as it may relate to your business.

IRS Coronavirus Information 

U.S. Treasury coronavirus page 

US Small Business Administration

SBA small business loan resources

MN DEED emergency loan program

MN  Unemployment Employer link

MN Revenue COVID-19 Updates 

WI Revenue COVID Updates

WI Unemployment 

United States Government Coronavirus page

 

March 24th:

The IRS, MN & WI have all extended the individual deadline to file and pay taxes due until July 15, 2020.

 

Taxpayers will automatically receive an extension of time to both file and pay their 2019 Federal, MN & WI taxes until July 15th, 2020. This applies to amounts usually due on April 15th for the 2019 tax returns.

In addition, the IRS and WI have extended the deadline for the first estimated tax payment until July 15th. The remaining estimated payments are still due on the normal dates in June, September and January.

MN has not changed the due dates for estimated payments, and the deadlines remain April 15th, June 15th, September 15th, and January 15th (2021).

The rules for business and trust returns are a bit more complicated, so feel free to contact us for more details about those entities.

 
We are still working hard to complete your returns, but many will be completed after April 15th.

 

With all the challenges that have occurred recently, many of the returns that we are working on will not be completed by April 15th. That said, we are still doing our best to complete the returns that we have received as soon as we are able, so that our clients can get their refunds quickly or know their amounts due with plenty of time to pay.

We continue to watch for additional guidance and updates from the taxing agencies and we will do our best to keep you informed as we receive information.