COVID-19
Dear Friends, Clients and Colleagues,
In these uncertain times for all of us around the world, we wanted to take a moment to reassure our clients and friends that we remain open for business so you can count on us to support you, perhaps now more than ever.
We feel for our many friends, neighbors, and clients who are experiencing substantial disruption to their respective jobs and businesses lately, and we know firsthand how difficult these times must be for you and your staff. Like you, many of our own staff will be figuring out how to help their children stay engaged with schoolwork from home for the next handful of weeks, caring for other loved ones in need, juggling more unexpected responsibilities, and navigating other challenges and uncertainty in things that we all used to take for granted.
To all our doctors, nurses, and others in healthcare, ‘THANK YOU’ for your tireless efforts to face this disease given the inherent dangers. THANK YOU!
Social Distancing
Our team at Daniel Island CPAs has the ability to continue to serve our clients from home and will be rescheduling most in-person meetings to conference calls. We will do our part of maintaining social distancing and we strongly encourage compliance by all.
We thank you in advance for your patience and understanding of any irregularity in our team’s accessibility and responsiveness over the coming weeks as we all adjust to this temporary interruption of normalcy.
With all this uncertainty, we want to take this opportunity to answer some questions you may have and keep you as informed as possible. Here is what we know as of today, Sunday, March 22, 2020.
Tax Deadline FAQs
When do I need to file my 2019 federal income taxes by?
The Treasury Department and Internal Revenue Service announced yesterday (3/21) that the 2019 federal income tax filing due date is automatically extended from April 15, 2020 to July 15, 2020.
What if I owe, when do I need to pay my 2019 federal income taxes?
Federal income tax payments due on April 15, 2020 are now deferred until July 15, 2020 without penalties and interest, regardless of the amount owed. The deferment applies to all taxpayers (individuals, estates, trusts, corporations, etc.).
What about filing and payment deadlines for my 2019 State of South Carolina (SCDOR) income taxes?
The South Carolina Department of Revenue (announced Saturday, March 21st) that the deadline to file tax returns in the state is extended to July 15, 2020, without penalties and interest.
What about filing and payment deadlines in another state?
Contact Us! We anticipate extensions in all states that have income taxes (42 states plus D.C.).
What about my 1st Quarter 2020 federal income tax payment? Originally it was due April 15th.
Federal relief includes estimated tax payments for tax year 2020 that are due on April 15, 2020. These payments are now due July 15, 2020.
How is Daniel Island CPAs managing the tax returns deadlines after the COVID-19 Outbreak? Will my tax return will be filed on time (4/15 or 7/15)? What is the status of my return currently? How are Daniel Island CPAs team prioritizing preparation and filing of returns?
We are confident that we can prepare and be able to file all returns for which we already have substantially all tax information by the original April 15th deadline. We welcome all clients to communicate any flexibility they have given our prioritization plan below.
Communication is key! Return Status – You are always welcome to contact any member of our team! We review the ‘status’ of all clients / all returns every Monday at 9am. While socially distant, technology permits us to do the same! We welcome our clients to contact our Client Relations Manager, Aileen Maeltzer (aileen@dicpas.com). Aileen can communicate your return status as well as understand your desired timing and/or any flexibility you may have given this crisis.
Workload Prioritization
Please know that we recognize this is a time of uncertainly and possibly constricting cash flows. Many of our clients will be relying on their tax refunds now more than ever. We are certainly ALL effected by this crisis, however some of our clients are effected more than others. We welcome you to communicate your urgency and welcome those that can communicate any flexibility! It will help us better serve everyone!
Here is our current Workload Prioritization Plan:
1.) Tax Refunds (Client Need)
We are prioritizing clients that we anticipate will be due a refund with an urgent need.
2.) Tax Return (Financing Purposes)
We understand that despite a client being due a refund or not, their filing may be urgent due to the need for loan financing purposes for that they can borrow capital to help fund this downturn. Let us know how we can help. Note that we have identified some resources below.
3.) Tax Due (Another 90 Days)
Clients that we anticipate will have a tax liability have an extra 3 months to file (and pay!).
Again, we welcome clients to communicate their need. We will prioritize all refunds and expedite any client that has an urgent need!
Resources
While this email predominately addresses the tax return deadlines, we know that our clients and colleagues rely on us for far more. We want to continue to support you and your business and provide you with as many resources as we can as we get through this crisis and return to normal life.
Accessing Additional Capital / Financing
Our friends at Finemark Bank, First Citizens Bank, South State Bank, and Synovus among others shared their advice and programs to help our clients. We are happy to make introductions. Here are some general guidelines / programs:
Payment Deferrals
Contact your banker / lender. Many financial institutions are offering payment deferrals for worker hardships.
Small Business Administration (SBA) Disaster Loan Assistance
We helped a client apply for a loan, application received today, 3/22.
We understand that loans can be funded within 2 weeks of application.
Hint: Use Internet Explorer!
You will need to provide a recent tax return! (2018 should suffice)
Business Lines of Credit
A line of credit will allow you to borrow (generally short term,
Home Equity Line of Credit
Use the equity in your home to help with personal / business cash flow.
Government Stimulus Plan
Who is eligible for the $1,200 stimulus payments I’ve been hearing about?
We cannot confirm exact details at this time. This is the bill proposed by Senate Republicans that needs approval by Democrats before heading to the President.
Something is very likely coming!
These payments will be structured as income tax rebates of up to $1,200 for single filers and $2,400 for taxpayers who filed a joint return, plus $500 more for each child claimed on the return. The payments begin to phase out for single filers with 2018 adjusted gross income over $75,000 and $150,000 for joint filers, and completely phase out at AGIs of $99,000 and $198,000, respectively.
Employer Payroll Tax Credit (Paid Family Leave)
Payroll Tax Credit for Required Paid Family Leave
Requires employers with more than 50 but less than 500 employees to provide public health emergency leave when an employee is unable to work or telework due to a need for to care for children under the age of 18 because schools and childcare facilities are closed.
Provides an employer payroll tax credit that equals 100% of the qualified family leave wages paid by the employer.
The credit is available for eligible wages paid during a period that begins within 15 days of enactment and goes through December 31, 2020.
The credit is generally available for up to $200 in wages a day an employee receives qualified family leave wages.
A maximum of $10,000 per employee limit also for the whole period.
If less than 50 employees only eligible if you choose to pay employee wages while not able to work.
Self Employed Individuals
Eligible self-employed individuals could receive a credit against income tax for qualified leave amounts.
Eligible self-employed individuals are an individual who regularly carries on any trade or business and would be entitled to receive paid leave under the Emergency and Medical Leave Expansion Act if they were an employee.
Payroll Tax Credit for Required Paid Sick Leave
Provides an employer payroll tax credit that equals 100% of the qualified sick leave wages paid by the employer.
The Emergency Paid Sick Leave Act requires employers with fewer than 500 employees to provide up to 80 hours of paid sick time through the end of this year if the employee is unable to work due to being quarantined or self-quarantined or having COVID-19 or because the employee is caring for someone who is quarantined or self-quarantined or has COVID-19 or if the employee is caring for children whose school has been closed because of COVID-19 precautions.
If you have less than 50 employees, you are exempt from this.
The credit is available for eligible wages paid during a period that begins within 15 days of enactment and goes through December 31, 2020.
The credit if available for up to $511 in wages who are quarantined or self-quarantined and wages up to $200 for other workers for day an employee receives qualified sick leave.
The credit would be available for up to 10 days per quarter.
Self Employed Individuals
Eligible self-employed individuals could receive a credit against income tax for qualified leave amounts.
Eligible self-employed individuals are an individual who regularly carries on any trade or business and would be entitled to receive paid leave under the Emergency and Medical Leave Expansion Act if they were an employee.
Commercial Real Estate
Our friend, attorney Jeff Vinzani of Graybill, Lansche & Vinzani, LLC, shared the following announcement with George and Clyde this morning. Important information for both tenants and landlords with regard to condemnation, co-tenancy, business interruption, lease/contract concessions, evictions, foreclosures, etc. Please note the link to the full article below:
https://glvlawfirm.com/covid-19-announcements/
We will continue to communicate with all of you. We welcome your feedback and any information that you can share.
Please stay safe and let us know how we can help. Together, we've got this!