One of the tax provisions in the CARES Act designed to give businesses immediate help with their cash flow allows them to defer payment of the employer’s Social Security tax of 6.2% (OASDI) of employee wages (up to an annual limit) incurred from March 27, 2020 through December 31, 2020. One half of the deferred amount will be due on December 31, 2021, and the other half will be due on December 31, 2022.
On April 9, 2020 the IRS issued Notice 2020-23 which significantly broadens its relief to taxpayers in response to the ongoing coronavirus pandemic. All taxpayers with a federal filing or payment deadline (original or pursuant to a valid extension) on or after April 1, 2020, and before July 15, 2020, have until July 15, 2020 to file the returns and make payments without penalties or interest.
The Coronavirus Aid, Relief and Economic Security Act (CARES Act) was signed into law on March 27, 2020. This $2.2 trillion legislation is the largest emergency relief bill ever passed in the U.S. It injects funds into the economy and provides direct relief to individuals, states, businesses and nonprofit organizations that are experiencing hardship due to the COVID-19 pandemic.
On Monday, April 6, the U.S. Department of the Treasury provided an update to its frequently asked questions on the Small Business Administration’s Paycheck Protection Program loans. The newly released FAQs address common questions and provide further guidance to borrowers and lenders concerning the implementation of the PPP.
Late Thursday, April 2, the Treasury Department released new guidelines from the Small Business Administration for the Paycheck Protection Program (PPP) to assist small businesses to submit their loan applications in a timely basis. We are continuing to monitor developments and updates that affect your business and will provide you with alerts on a regular basis to ensure you are informed on how to respond to tax and regulation changes as they occur.
With many COVID-19 legislative measures and related resources available, Bennett Thrasher is dedicated to providing you with the information your business needs. Our team of accounting and consulting professionals are continuously monitoring developments as they occur in real-time order, in order to provide you with important updates on legislation and relief efforts that affect you and your business.
As the coronavirus (COVID-19) pandemic rapidly spreads throughout the U.S. and the world, nonprofit organizations are facing unprecedented challenges to their operations, staffing and fundraising. Many nonprofits serve vulnerable clients such as the elderly, the ill and the homeless, and these organizations will be strained to continue to provide services during the crisis. Arts and cultural organizations have closed and canceled programs in response to directives to limit public gatherings.
On Friday, March 20, Treasury Secretary Steven Mnuchin tweeted that the April 15, 2020 tax filing deadline will be postponed until July 15. Later that evening the IRS issued Notice 2020-18, making Mnuchin’s announcement official. Notice 2020-18 supersedes Notice 2020-17 which was issued on March 18. The new notice affirms that the IRS will automatically treat July 15 as the new deadline for filing federal income tax returns and making federal income tax payments for all taxpayers, including individuals, corporations trusts and estates.
In response to the ongoing coronavirus public health crisis, the federal government has taken unprecedented steps to provide economic relief to individuals and businesses. Since the beginning of March, Congress has approved $8 billion in emergency funding and passed the Families First Coronavirus Response Act to help combat the effects of the coronavirus pandemic. The third and most impactful phase of this relief is the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), a momentous $2 trillion infusion into the economy which was signed into law on March 27th.
In response to the current economic conditions and pandemic, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was unanimously passed by the Senate on Wednesday, March 25 and by the House on Friday, March 27. It is expected to be signed into law by President Trump shortly.