COVID-19 Information - Federal Rules
Stay current with changes to federal and state tax laws and assistance programs for businesses affected by the outbreak of coronavirus.
Before listing URLs and discussing some of the technical matters, it’s important to state that the most important thing to focus on is the health and safety of you and your family and friends. Taxes and finance are important, but life and health come first.
The coronavirus has put severe strain on our nation’s medical resources, and has severely impacted our economy at all levels.
The federal government has enacted several changes as a result. The most well publicized one, and the least understood was the 90 day extension for filing business and personal returns that would ordinarily be due on April 15th. The IRS recent published updated guidance in Notice 2020-18 which clarified that this 90 day extension applied solely to filing individual and business returns for tax year 2019, and for first quarter estimates for 2020. Contributions to HSAs, IRAs (Traditional and SEP), and other elements of our tax laws that are not specifically referenced above continue to be due at their normal times.
This has created a situation where the 1st quarter estimate for tax year 2020 will be due AFTER the 2nd quarter estimate, which as of this posting continues to be due at its normal time of June 15th.
Additionally, the federal government recently enacted the Families First Coronavirus Response Act (FFCRA) which contains several provisions for employers. There are no carve outs for small businesses. As this is new legislation, there is a good deal of uncertainty about how to comply with it. The IRS, along with other branches of government, just released Notice IR 2020-57 which aims to assist employers and employees with understanding these new rules.
IRS Press Release on Notice IR 2020-57
These changes, both the responsibilities and credits, are at the federal level. Many states, including Maryland, has stated that they would follow along with whatever relief was provided by the federal government.
Comptroller of Maryland - Revised Due Dates for Tax Year 2019
The government has determined that accounting firms are deemed as ‘essential businesses’ and as such, we are continuing to operate. However, due to the danger presented by this illness, it is not business as usual. We have instituted a quarantine on incoming mail, we have closed our office to both clients and employees, and we will not take in-person meetings. Because we have taken steps to modernize our firm over the past several years, we have the resources to continue serving you during these times. Please check out our apps on our Tools page. If you’re not already setup on our firm’s secure portal, please email us.