Did you know we have a Coronavirus Resource Center? The past few weeks have brought a lot of information our way, as people and businesses deal with the impact of this global pandemic. We’re here to shed light on some important FAQs. Let’s dive in.

Coronavirus FAQs

1. Are my taxes still due April 15?
   No, the IRS has extended the tax payment deadline by 90 days. All payments are due July 15.; most states are following suit.
2. How much can you defer?
   There are no longer payment caps. Previous guidance held that individuals could only defer up to $1 million in taxes and large corporations could defer up to $10 million.
3. Does the payment extension apply to businesses too?
   Yes, businesses have until July 15 to pay their taxes.
4. Wait, do I still have to file by April 15?
   No, the filing deadline has also been extended by 90 days.
5. Is the IRA contribution deadline changing?
   Yes. Contributions can be made to your individual retirement account (IRA) for a particular year at any time during the year or by the due date for filing your return for that year. Since the deadline has been extended for federal income tax returns, IRA contributions can be made until July 15^th as well.
6. Are gift tax returns impacted by the relief?
   The IRS has extended the due date for 709 gift tax returns that would have been due on 4/15 to 7/15.
7. Is the retirement contribution for C corps extended as well?
   Yes, the grace period is also extended to July 15, 2020 for c corporations.
8. Does the relief also apply to health savings accounts (HSA)
   Yes, the deadline to contribute to HSAs has also been extended to July 15, 2020.
9. Does the relief apply to payroll or excise taxes?
   No, under the notice, normal filing, payment and deposit due dates continue to apply to payroll and excise taxes.
10. Does the relief apply to estate and gift taxes?
    No, normal filing and payment due dates continue to apply to estate and gift taxes.
11. Does the relief apply to Section 965(h) installment payments?
    Section 965 installment payments are now due July 15, 2020.
12. Does the relief apply to estimated payments for a corporation required to make payments under Basis Erosion and Anti Abuse Tax (BEAT)?
    Yes, this has also been extended to July 15, 2020.
13. Does the relief apply to information returns?
    No, only federal income tax returns.
14. My business has suffered economic loss due to the outbreak…Is there any relief being offered?
    Yes, the Small Business Association is offering disaster loans to businesses affected by the coronavirus. These loans can provide up to $2 million for economic damage. Here’s where you apply: SBA Disaster Loan Assistance
15. I need updated technology to work more efficiently from home…what are some options?
    Virtual desktop hosting software is a secure platform for those who are not ready to transition to QuickBooks online or other cloud based software. Bill.com is a provider of cloud-based software that automates back-office financial operations for small and midsize businesses. KLR can get you set up with both.
16. I lost my job. How do I file for unemployment?
    Filing for unemployment varies from state to state.
17. How much do you receive on unemployment?
    Once you apply, you’ll find out your exact eligibility but in general most workers are eligible for 50% of their wages for up to 26 weeks. There is a weekly dollar limitation of $586 per worker in RI.
18. Is the FMLA amended at all due to the outbreak?
    The Families First Coronavirus Response Act, signed into law March 18, amends the Family Medical Leave Act for employees who work for employers with less than 500 employees and have been on the job at least 30 days. The act allows eligible employees to take up to 12 weeks of protected leave to comply with quarantine requirements.
19. I received an email from the World Health Organization with an attached document..should I open it?
    No! There is a malware-laced message going around that requests users to read an attached document with coronavirus precautions. It’s important to delete the email and not click on any links or attachments. Keep in mind that the WHO will never email attachments you didn’t ask for, request a login to view safety information or send you to a link outside of www.who.int.
20. Will this lead to an economic recession?
    Although there’s no way to know for sure, as a result of the massive compression of economic activity, there will no doubt be an economic recession of some form and fashion.

Further questions on the impact of the COVID-19 outbreak? Visit our Coronavirus Resource Center or contact us.