Barrett CPA PC

NY Governor has announced a change for tax day to July 15, but no details have been provided. Another way of looking at this is that it is now more than 3 months and three weeks before tax day. In a normal year three months and three weeks before tax day is the last week of December. So in three days, I will be wishing you Happy (Tax) New Year! We will be working on getting refund taxes done, as well as catching up with those of you who have not filed 2018 tax return, since t...hat would be needed to get you your $1,200+ government check. As guidance comes in, we will also be working on the 2 times monthly payroll (or self-employment income) Grant for almost all employers or self-employed individuals. The NY Tax website has not changed, and the Executive Order has not been published, so I will let you know when we get the details on the change in Tax Day.

In true Jeopardy! fashion I will only give answers, which will save time and space (See if you can figure out the questions): New York State has not extended any due dates at this time, but everyone has Reasonable Cause for any penalty abatement, should NY be so foolish as to not change due dates. $1,200 checks should be coming in a few weeks. If your bank account, address, or family size has changed, there will be a number to call (or a website to visit) at some point in ...the future to make corrections. If you have filed either 2019 or 2018 taxes or collect Social Security or Railroad Retirement, and are not a dependent, you will get a check. Otherwise please email the office. Mortgage forbearance is not automatic. You must contact your lender. Up to $300 donations to recognized charities, which are deductible for everyone even if they do not itemize, must be made in money not in kind or services. Corporations can now deduct 25% of their income for donations paid in money. Pretty much everyone in New York State has Economic Injury. You can withdraw up to $100,000 from pension or IRA without penalty, and without tax if you pay it back within three years. If you are over 70 you do not have to take RMD. Not all banks are currently set up for SBA loan yet for example, in Greene County it seems only Trustco is. $10,000 immediate advance on the pre-existing SBA loan program is not set up at this moment. (It’s the $10,000 you get to keep even if SBA loan is rejected.) Grant/loan of two and one half average monthly payroll is not set up yet, but expected within a week or so. Get all payroll and accounting data together. If you already laid off employees, you should hire them back sooner than 30 days from layoff. If you are self-employed, you can now collect Unemployment. If your business receipts will have dropped 50% for this quarter, you may not need to make 941 deposits. Email us. Federal Student loan non-payment for the next six months will not hurt your credit or cause you to incur extra charges. Federal debt collection is suspended. If not already sent, please email tax information, or mail to Barrett CPA PO Box 288 Catskill, NY 12414. If we don’t get everything we need, we will let you know. Family, friends, and neighbors. Taxes and other filings are at the bottom of the list.

Final pertinent provisions: FEDERAL STUDENT LOANS Federal Student loans payments suspended until 9-30-20, and no interest accrues... Monthly credit toward loan forgiveness continues, and credit reporting counts as paid Garnishment, tax refunds seizing, and any other Federal benefit reductions ends on any involuntary collection activity PAID LEAVE Rehired employees are eligible employees, if laid off after 2-29-20,and had been employed for 30 of last 60 days Waiver of employer deposit penalty if not made in anticipation of credit PENSION PLANS Return due dates can be extended Contributions required to plan can be delayed until 1-1-21 SUNSCREEN Expand and relax sunscreen ingredient requirements Sunset sunscreen requirement relief MUNICIPAL LOANS Up to $454 Billion for loans or Federal Reserve purchase of loans MORTGAGE FORBEARANCE Federally backed mortgage loan Up to 180 day forbearance upon request Attest to hardship Landlords cannot evict tenants if they have Federal backed mortgage loans Federally backed Multifamily more than 5 units mortgage loan borrower who is current at 2-1-20 can request 30 day forbearance 3 times PUBLIC HOUSING $1.25 Billion for tenant based rental expense for Housing Authorities for new activities, renewal funding, operating funds and other programs OTHER PROVISIONS There are many interesting provisions not germane to this communication Next step will be signing of the approved bill by the President. I will work on putting together a more organized presentation of the 880 page ACT, and the prior 2 COVID-19 ACTS

SOME MORE PROVISION OF INTEREST: EMPLOYEE RETENTION CREDIT 50% of qualified wages are allowed, maximum $5,000/employee ... Credit limited to Medicare and Social security employer match, balance is refunded Allowed for any business or tax-exempt organizations with receipts decline of 50%, based on certain benchmarks Based on pay to employees who did not work if over 100 employees, or all wages if employees less than 100 Apportioned qualified health plan costs are included in qualified wages Amounts paid under new Family or Medical Leave or Paycheck Protection Program do not get counted (or rather double counted) Limited to employee regular wages Governmental entities do not count PAYROLL TAX DEPOSITS DELAY Not counting taxes forgiven or credited due to other sections of the law Starting on date of enactment (3-27-20?) ending 12-31-20 is deferral period 50% of employer match of FICA and Med are not due until 12-31-21, 50% due by 12-31-22 For those individuals paying Self-Employment tax 50% payments are delayed - 25% not due until December 31,2021, 25% not due until December 31, 2022 NET OPERATING LOSS CARRYBACKS Corporate NOLs for years beginning after 12-31-17 and before 1-1-21 are carried back 5 years, with certain limitations Others have expanded provisions OTHER PROVISIONS-ALL WORK TO TAXPAYER ADVANTAGE Corporate Minimum Tax credit modification Excess business interest limitation modification Depreciation for certain assets improved No excise tax on alcohol used to make hand sanitizer That’s it for now. More to come later