We have been contacting our business clients to assist them in receiving stimulus funds. Every industry, whether directly or indirectly, is being severely impacted by the effects of COVID-19. Frankly the law changes and various programs can seem overwhelming, but do not get lost in the deluge of misinformation that is being released.

Here are three steps you have to do *now* in order to receive the first wave of business stimulus:

At @realDonaldTrump<’s direction, we are moving Tax Day from April 15 to July 15. All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.

— Steven Mnuchin (@stevenmnuchin1<)

As stated before, we are strongly encouraging clients, who have the ability, to send their tax information. Many state returns will not match the extended federal due date.

As part of Coronavirus relief, President Donald Trump announced a 90-day extension for Individuals and Corporations to pay certain tax payments. Critically: at this time, it may be that this is only an extension to pay, and not an extension to file. There is much that is unknown, and we are seeking guidance from the IRS. However, it was announced that the IRS will not invoke penalties and interest on tax payments under $1 million for individuals and $10 million for corporations.

It is our recommendation that taxpayers make their best efforts to get us relevant 2019 tax year information as soon as possible.

The US House of Representatives approved Families First Coronavirus Response Bill could provide $15 million to worth of tax credits for paid sick, family, and medical leave. Treasury Secretary Steven Mnuchin stated that "this bill will provide significant relief to small businesses that cannot afford the employee costs associated with coronavirus.... The bill provides a dollar for dollar reimbursement for coronavirus related sick leave costs. To protect businesses concerned about cash flow, the Treasury will use its regulatory authority to advance funds to employers in a number of ways," Furthermore he added. "Employers will be able to use cash deposited with the IRS to pay sick leave wages. Additionally, for businesses that would not have sufficient taxes to draw from, Treasury will use its regulatory authority to make advances to small businesses to cover such costs."

Note, as of March 17, 2020 this bill has not passed the US Senate.

In summary the bill provides the following tax credits:

Taxpayers who use their home for business may be eligible to claim a home office deduction. It allows qualifying taxpayers to deduct certain home expenses on their tax return. This can reduce the amount of the taxpayer’s taxable income. Here are some things to help taxpayers understand the home office deduction and whether they can claim it:

As the end of 2019 approaches, more and more information and guidance is released by the IRS relating to the Tax Cuts and Jobs Act, as well as guidance relating to a number of different areas not impacted by the landmark tax reform act. While one of the claimed benefits of tax reform was the simplification of filing and the lowering of income tax rates, there are still many steps that individuals can take that can lower their tax bills. Planning during the final weeks and months of this year involves much more–both in terms of traditional year-end strategies and strategies developed in response to developments that have taken place over the last couple of years. Here are some points to consider:

As year-end approaches, each business should consider the many opportunities that might be lost if year-end tax planning is not explored. A business may want to consider several general strategies, such as use of traditional timing techniques for delaying income recognition and accelerating deductions. A business should also consider customized strategies tailored to its particular situation.

For existing clients who wish to request an extension, please fill out the following document:

The Tax Cuts and Jobs Act was signed by President Trump on December 22. The Act makes sweeping changes to the U.S. tax code and impacts virtually every taxpayer. For businesses, tax benefits include a reduction in the corporate tax rate, increase in the bonus depreciation allowance, an enhancement to the Code Sec. 179 expense and repeal of the alternative minimum tax. Owners of partnerships, S corporations, and sole proprietorships are allowed a temporary deduction as a percentage of qualified income of pass-through entities, subject to a number of limitations and qualifications. On the other hand, numerous business tax preferences are eliminated.