As many of you are aware there have been significant tax changes due to the Covid-19 virus cases across the country. I am sending out this e-mail to help sort out fact, and what has actually passed into law, from fiction and proposed legislation.
First, the tax deadline and payment deadline have been moved from April 15th to July 15th. This means you do not have to file your individual tax returns or make a payment. This includes your first quarter estimated tax payment. There will be no penalties or interest assessed between the dates of 4/15 and 7/15. At this time, if you plan on filing after July 15th, you will still need to file an extension before April 15th for the October deadline date.
A bill has been passed which requires small business owners, with 50 to 500 employees, to pay up to 80 hours of sick time to eligible employees who have been affected by the virus. Employers will be reimbursed 100% for these payments. This sick pay will be offered as a credit to self-employed business owners. We do not have IRS guidelines as of today on exactly what documentation will be needed for proof, so make sure you keep any available documentation. We also do not have guidelines on exactly how these reimbursement offsets will occur.
Many people have talked about a stimulus package and receiving a check. As of today, this is still just a proposal and nothing has been passed into law. I expect some version will be passed this week, but until then I can not speculate on what will be in that bill.
Things are very fluid at this time and change by the hour. I will do my best to keep you informed as information becomes available.