March 31, 2020
Dear All,
Please note these important IRS due dates and payment information for 2019 taxes. To summarize:
The Individual and C Corporation tax deadline has been moved to July 15th for both the IRS and the State of Colorado. If you have other states attached to your income taxes, please see those individual states for the updated filing deadlines as each state is different.
Payment of taxes has also been delayed until July 15, 2020 and will not be subject to interest or penalties if paid by then. If you still want to take advantage of filing by October 15, 2020, we will need to file an extension for you in late June/early July to give you a 3-month extension for filing by the fall deadline. Remember the same rules will apply for extensions as if we were doing them in April. It is an extension to file your taxes, not the paying of your taxes. If you owe money and file by October 15, 2020, you will owe interest and penalties from July 15th until you file in the fall.
S Corps and Partnerships that were due on March 16, 2020 are not affected by this and all clients who haven’t filed by those deadlines have been extended by our office until September 15, 2020.
IRA and Health Savings Account (HSA) Contributions have also been extended to the July 15th deadline. If you want to put money into an IRA or HSA, you have a 90-day extension to do so. Please let us know if you would like to take advantage of this when submitting your paperwork to our office for preparation of your taxes.
Please refer to the following link from the IRS for all FAQ’s on the new extended deadline for taxes and payment of taxes:
https://www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers
UNEMPLOYMENT INFORMATION
For Colorado specifically, please refer to this link: https://www.colorado.gov/pacific/cdle/information-and-resources-coronavirus same as federal, but any business (even your 1-Man S Corps) can file unemployment on themselves, and will NOT have their rate affected. You can apply online, but if you are having difficulty you may want to contact the unemployment office directly at (303) 318-8000.
SBA LOAN INFORMATION – PROGRAM SUMMARY
Purpose/Use of Funds:
Payroll support, mortgage interest, rent, utilities
Eligible Borrowers:
Businesses and non-profit organizations with fewer than 500 employees and that were in operation on February 15, 2020.
Sole proprietors, independent contractors, and self-employed individuals.
Must certify that they have been impacted by COVID-19.
Loan Amount:
Maximum loan amount is 2.5 times eligible payroll costs, but proceeds can be used for other qualifying purposes. Compensation of individual employees in excess of $100,000 must be deducted from payroll cost.
Certain expenses are forgivable (see below).
Loan amount may be increased to the maximum loan amount above, but more traditional underwriting will be required.
Forgiveness:
Eligible payroll costs, rent, mortgage interest payments, and utilities expenses over some period of time will be forgiven.
It appears the forgivable portion of expenses will be no more than 8 weeks of qualifying expenses, beginning on the date the loan is made.
Forgivable amount may be reduced if number of employees is reduced.
Forgiveness of debt under this program will not be considered taxable income.
Terms:
Payments deferred for up to 12 months.
No prepayment penalty.
No SBA Fees
Collateral/Personal Guaranties:
Collateral not required
Personal guaranty not required
This program will provide significant benefit to our borrowers and our communities. Funds will be limited, though, so it is important that you act fast.
Here is some additional information regarding the CARES Act passed by Congress on March 27, 2020, provided by the Basalt Chamber:
https://www.basaltchamber.org/2020/03/29/small-business-owners-guide-to-the-cares-act/
You can reach out to your local bank for assistance or speak with Chris Dunkin at ANB Bank in Willits as he looks to be streamlining this for our clients. You don’t have to be a customer of ANB Bank to get assistance or qualify for this expedited application process. You can reach him at 970-279-0534 or via email Chris.Dunkin@anbbank.com. I don’t receive anything from him for each referral; I am posting his information as he is the only one who has reached out to our office to assist our clients.
OFFICE INFORMATION
We are still open and deemed an essential business to assist our clients as needed. We are still not allowing clients inside the office at this time, but have put out a basket in front of our office door to drop off or pick up information. If you have any questions when you pick up items, please call the office and Robyn will be available by phone to assist as she will be in the office during the week. Our office hours are Monday through Friday 8:30am - 4:30pm. Email will probably be the best way to reach any of us as Brian, Meghan and Cyndi are working from home. Our email addresses are the following:
Brian – bsmith@basaltcpa.com
Meghan – mkirkland@basaltcpa.com
Cyndi – cspeedy@basaltcpa.com
Robyn – rforeman@basaltcpa.com
ADDITIONAL RESOURCES
Please reference the following links for information regarding small businesses and restaurants: