March 29, 2020

Recovery check distribution amounts—Single taxpayers will receive $1,200 and joint taxpayers will receive $2,400. There is an additional $500 for each qualifying child. 

The recovery check is considered an advance credit for the 2020 tax return but paid in advance. When your 2020 tax return is prepared, your adjusted gross income on that tax return will determine the amount of credit repayment you may have, if any. Therefore, if your 2020 adjusted gross income is less than the thresholds shown below, you will not have any advance credit amount to repay.

The amount is reduced (but not below zero) by 5% of each dollar a person’s adjusted gross income (AGI) exceeds. Consider the following:

• Married filing joint: $150,000 (AGI over $198,000 does not qualify)
• Head of household: $112,500 (AGI over $146,500 does not qualify)
• Single: $75,000 (AGI over $99,000 does not qualify)
• Consider the following example: 

1. A married couple with no children has an AGI of $190,000.
2. $190,000 is $40,000 above the $150,000 amount shown above.
3. The couple’s check is reduced by 5% of $40,000, which is $2000.
4. Therefore, they would receive a check for $400. (i.e., $2400 - $2000 = $400)

Other key details for recovery check eligibility include:

• Nonresident aliens are not eligible for the rebate.
• If a taxpayer has an outstanding debt (which the IRS would typically offset a refund by paying that debt), recovery dollars will not be used to offset that debt.
• Amount will be direct deposited into the account on the last filed return. Every taxpayer will receive a letter indicating their recovery check was dispersed. If the letter is not received, there will be a specific phone number to call to have the check re-issued.
• AGI will be accessed from 2019 returns if filed at the time of determination. Otherwise, 2018 returns will be used. Taxpayers who have not filed a return will not receive a check unless they did not file because they only have SSA-1099 or RRB-1099 (social security). The Treasury Department will review those forms for 2019 and issue the appropriate amount via check. 

Update April 10, 2020

IRS launchs Economic Impact Payments website here.

March 31, 2020

The recently passed Coronavirus Aid, Relief, and Economic Security (CARES) Act provides individuals and businesses significant financial relief from the financial strain caused by the coronavirus epidemic.

Here is a snapshot of the unemployment benefits section of the bill and how it affects individuals and businesses.

WHO QUALIFIES TO RECEIVE STATE UNEMPLOYMENT BENEFITS? 

In addition to full-time workers who are laid off or furloughed, the Act provides individuals who are not already eligible for state and federal unemployment programs, including self-employed individuals and part-time workers, a set amount of unemployment compensation.

HOW MUCH WILL I RECEIVE?

There are two different components to the new law’s unemployment benefits:

• Each worker will receive unemployment benefits based on the state in which they work, and
• In addition to their state unemployment benefits, each worker will receive an additional $600 per week from the federal government.

HOW WILL BENEFITS FOR SELF-EMPLOYED WORKERS BE CALCULATED? 

Benefits for self-employed workers are be calculated based on previous income and are also eligible for up to an additional $600 per week. Part-time workers are also eligible.

HOW LONG WILL THE STATE UNEMPLOYMENT PAYMENTS LAST? 

The CARES Act provides eligible workers with an additional 13 weeks of unemployment benefits. Most states already provide 26 weeks of benefits, bringing the total number of weeks that someone is eligible for benefits to 39.

HOW LONG WILL THE FEDERAL PAYMENTS OF $600 LAST? 

The federal payment of $600 per week will continue through July 31, 2020.

HOW DO I APPLY FOR UNEMPLOYMENT BENEFITS? 

You must apply for unemployment benefits through your state unemployment office. Most state applications can now be filled out online. Workers who normally don't qualify for unemployment benefits, such as self-employed individuals, need to monitor their state's unemployment office website to find out when they can apply, as many states need to update their computer systems to reflect every type of worker who is eligible to collect unemployment benefits under the CARES Act.

What to do NOW!

If you have lost your job, you must file for unemployment with your state as soon as possible. State offices and websites are being slammed, so the sooner you get in the queue the better for you and your loved ones.

Missouri Labor Department Website Click Here.

March 29, 2020

Ability to withdraw up to $100,000 retirement in 2020 for COVID-19-related purposes without 10% penalty—The distribution is taxable over a 3-year period unless electing to pay it back within 3 years. This essentially equates to a loan unless it is not paid back within the 

3-year timeframe. This rule applies to individuals:

• Diagnosed with COVID-19
• Who have family (spouse or dependent) who have been diagnosed with COVID-19
• Who have adverse financial consequences in relation to COVID-19
• Who include the distribution in taxable income (unless they elect the 3-year payback)
• Waived required minimum distributions (RMD) from individual retirement accounts—The required minimum distribution for 2020 has been waived. If a retiree elects to take an RMD, this must happen by April 1, 2020—otherwise, the same penalty for late withdrawal will be applied.

March 29, 2020

Above-the-line charitable contribution—For tax year 2020, if a taxpayer does not itemize deductions, they can deduct up to $300 in addition to standard deduction for cash charitable contributions (no stock contributions).

Charitable contribution limitation by AGI—The 60% adjusted gross income limitation has been removed for 2020 (other than from donor advised funds).

Deferral of the employer portion of payments of certain payroll taxes

The Act allows employers and self-employed individuals to defer payment of the employer share (6.2%) of the Social Security tax on wages through the end of 2020. Fifty percent of the deferred tax payments will be due by December 31, 2021, and the remaining portion due by December 31, 2022. Businesses who have debt forgiven from Payroll Protection Program loans (covered below) are not allowed to delay their payments.

March 31, 2020

Eligible employers can qualify for a refundable credit against, generally, the employer’s 6.2% portion of the Social Security (OASDI) payroll tax (or against the Railroad Retirement tax) for 50% of certain wages (below) paid to employees during the COVID-19 crisis. 

The credit is available to employers carrying on business during 2020, including non-profits (but not government entities), whose operations for a calendar quarter have been fully or partially suspended as a result of a government order limiting commerce, travel or group meetings. The credit is also available to employers who have experienced a more than 50% reduction in quarterly receipts, measured on a year-over-year basis relative to the corresponding 2019 quarter, with the eligible quarters continuing until the quarter after there is a quarter in which receipts are greater than 80% of the receipts for the corresponding 2019 quarter.

For employers with more than 100 employees in 2019, the eligible wages are wages of employees who aren’t providing services because of the business suspension or reduction in gross receipts described above.

For employers with 100 or fewer full-time employees in 2019, all employee wages are eligible, even if employees haven’t been prevented from providing services. The credit is provided for wages and compensation, including health benefits, and is provided for the first $10,000 in eligible wages and compensation paid by the employer to an employee. Thus, the credit is a maximum $5,000 per employee. 

Wages don’t include (1) wages taken into account for purposes of the payroll credits provided by the earlier Families First Coronavirus Response Act for required paid sick leave or required paid family leave, (2) wages taken into account for the employer income tax credit for paid family and medical leave (under Code Sec. 45S) or (3) wages in a period in which an employer is allowed for an employee a work opportunity credit (under Code Sec. 51). An employer can elect to not have the credit apply on a quarter-by-quarter basis. 

April 2, 2020

One of the small business measures in the bill is the Paycheck Protection Program(PPP)—here’s everything you need to know.

The Paycheck Protection Program is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This is a nearly $350-billion program intended to provide American small businesses with eight weeks of cash-flow assistance through 100 percent federally guaranteed loans. 

Key provisions

• There is no cost to apply.
• The funding is meant to help retain workers, maintain payroll, and cover rent/mortgage/utility expenses.
• The loan covers expenses dating back to February 15, to June 30 2020
• The loan can be forgiven and essentially turn into a non-taxable grant.

Qualifications: 

This program is more extensive than the SBA disaster loan. Small businesses, sole proprietorships, independent contractors, and self-employed individuals can all qualify.

• Sole proprietorships will need to submit schedules from their tax return filed (or to be filed) showing income and expenses from the sole proprietorship.
• Independent contractors will need to submit Form 1099-MISC.
• Self-employed individuals will need to submit payroll tax filings reported to the Internal Revenue Service.

Differences between PPP and Disaster Loan: 

• No personal or business collateral is required. The SBA disaster loan may require collateral for loan amounts over $25,000.
• It’s ok if you also have access to credit elsewhere. To receive a SBA disaster loan you generally need to have no other source of credit.
• The funding covers a more restrictive set of purposes (details below). The SBA disaster loan can cover most operating expenses.
• Your loan can be forgiven if you follow the terms. The SBA disaster loan requires repayment.

Similarities between PPP and Disaster Loan:

• You need to demonstrate your business was economically affected by COVID-19.
• It’s free to apply.
• Your loan is long-term (maximum 10 years) and low-interest (maximum 4%).
• You have an extended deferment period (6-12 months, depending on your lender) before you begin repayment.
• There is no prepayment penalty.

Funds usage:

You must acknowledge that the funds will be used to retain workers and maintain payroll or make mortgage payments, lease payments, and utility payments. Funds you use for other purposes will not be eligible for forgiveness.

The funds can be used for:

• Payroll and commission payments
• Group health care benefits/insurance premiums;
• Mortgage, rent, and lease payments
• Utilities
• Interest on any other debt obligations that were incurred before the covered period.

Amount of PPP Available:

The SBA will ask you to provide documentation on your business’s payroll, group health, and retirement benefits over the previous 12-month period. They will calculate the monthly average cost of those expenses. The maximum amount they can offer is 2.5 times (250%) that monthly average cost, but no more than $10 million.

If you are a seasonal employer, the monthly average cost will be calculated differently. The SBA will use a 12-week period beginning either February 15, 2019 or March 1, 2019, and ending June 30, 2019.

If your business did not exist before June 30, 2019, the SBA will look at your costs in January and February 2020.

There are important restrictions regarding the payroll calculation. Do not include:

• Any salaries above $100,000 per year;
• Employer payroll and income taxes such as FICA and FUTA;
• compensation for an employee with a principal place of residence outside the United States; and
• Any qualified sick leave wages for which a tax credit is allowed under Section 7001 or 7003 of the Families First Coronavirus Response Act.

Do independent contractors count as employees for purposes of PPP loan calculations?

No, independent contractors have the ability to apply for a PPP loan on their own so they do not count for purposes of a borrower’s PPP loan calculation. 

Note that if you receive a loan under the Paycheck Protection Program, you may no longer be eligible for an EIDL SBA loan for the same purpose of covering payroll.

Qualification for Forgiveness:

In the 8 weeks following your loan origination date, all expenses related to the following can be forgiven:

• Payroll—salary, wage, vacation, parental, family, medical, or sick leave, health benefits
• Mortgage interest—as long as the mortgage was signed before February 15, 2020
• Rent—as long as the lease agreement was in effect before February 15, 2020
• Utilities—as long as service began before February 15, 2020

Documents Required for Application:

You must also submit such documentation as is necessary to establish eligibility such as payroll processor records, payroll tax filings, or Form 1099-MISC, or income and expenses from a sole proprietorship. For borrowers thatdo not have any such documentation, the borrower must provide other supporting documentation, such as bank records, sufficient to demonstrate the qualifying payroll amount. 

Conditions for Loan Forgiveness:

The purpose of the Paycheck Protection Program is to protect paychecks. You must commit to maintaining an average monthly number of full-time equivalent employees equal or above the average monthly number of full-time equivalent employees during the previous 1-year period.

The amount that can be forgiven will be reduced…

• In proportion to any reduction in the number of employees retained.
• If any wages were reduced by more than 25%.
• If you rehire employees that were previously laid off at the beginning of the period, or restore any decreases in wage or salary that were made at the beginning of the period, you will not be penalized for having a reduction in employees or wages, as long as you do this by June 30, 2020.

Additional details:

Mnuchin said in a press conference that these loans should be available Friday, April 3, 2020.

Any FDIC insurance bank or federally insured credit union will be able to provide these loans. These loans will be SBA loans, but you do not need to go through an SBA bank or the SBA website to access these loans. At this time we know US Bank, Arvest Bank, First State Bank of Purdy, Community National Bank and Freedom Bank are participating, please contact your bank to see if they are part of this program.

We are still awaiting the list of documentation which will be required. But, be prepared to have payroll tax returns and payroll reports from 2019 and YTD 2020 available to calculate your eligibility and the amount of the loan. We recommend that you start getting your payroll records together so you can get in front of the line once this program starts.

Update: For a checklist to assist in preparing for this loan see this checklist from the US Chamber of Commerce.

Additionally, there is no personal guarantee required on any of the loans. They are 100% insured by the Federal Government

BREAKING NEWS 3/31/2020

Treasury Issues Guidelines, Application Form for SBA Paycheck Protection Program

Small businesses and sole proprietorships—generally, those with 500 or fewer employees—may apply for PPP loans starting on Friday, April 3; independent contractors and self-employed workers can apply starting April 10. PPP loans will be fully forgiven when used for payroll costs, interest on mortgages, rent and utilities, with at least three quarters of the forgiven amount being used for payroll; forgiveness is based on employers maintaining headcount or quickly rehiring and maintaining salary levels.

Read the information sheet for borrowers. 

View the application form. 

Learn more at treasury.gov/cares. 

UPDATE 4/2/2020 10:16PM

Example spreadsheet to calculation PPP average payroll cost

March 30, 2020

The Coronavirus Aid, Relief, and Economic Security (CARES) Act temporarily expands eligibility for SBA economic injury disaster loans (EIDL) and provides an emergency advance of up to $10,000 to small businesses and private non-profits harmed by COVID-19 within 3 days of applying for an SBA Economic Injury Disaster Loan (EIDL).  To access the advance, you first apply for an EIDL and then request the advance.  The advance does not need to be repaid under any circumstance, and may be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent, and mortgage payments. 

Eligibility

In addition to the entities that are already eligible for SBA disaster loans (small businesses, private non-profits, and small agriculture cooperatives), eligibility is temporarily expanded to include:

• Business entities with 500 or fewer employees
• Sole proprietorships, with or without employees
• Independent contractors
• Cooperatives and employee owned businesses
• Tribal small businesses
• Private non-profits of any size.

Additionally, you must have been in business as of January 31, 2020.  Expanded eligibility criteria and the emergency grants are only available between January 31, 2020 and December 31, 2020.

How to Apply

• You can apply for an EIDL online with the SBA at https://covid19relief.sba.gov/.
• When you apply, you can request an emergency grant of $10,000.
• The SBA will provide the grant within 3 days of receiving your application.
• You will not have to repay the grant, even if your application for a loan is denied.
• You can visit an SBA resource partner who can help guide you through the loan application process.  You can find your nearest Small Business Development Center (SBDC) or Women’s Business Center here.

Can I apply for other SBA loan programs?

If you apply for an EIDL and the grant, you can still apply for a Paycheck Protection loan.  However the amount forgiven under a Paycheck Protection loan will be decreased by the $10,000 grant.

More Information

For more information about SBA loan programs, please visit the Small Business Administration.  

March 27, 2020

Under the recently enacted Coronavirus Preparedness and Response Supplemental Appropriations Act (the Act), small businesses that have suffered substantial economic injury as a result of COVID-19 can apply for low-interest federal disaster loans through SBA. Small businesses and nonprofits can apply for working capital loans of up to $2 million.

We’ve highlighted the following key details of the Act for you here, but you can also learn more by visiting the COVID-19 disaster assistance page on SBA’s website.

• State governors must first request access to the Economic Injury Disaster Loan program. Once the declaration is made, information on the application process for disaster loan assistance will be made available to affected small businesses within the given state.
• Loans carry an interest rate of 3.75% for small businesses and 2.75% for nonprofits.
• Loans can be used to cover accounts payable, debts, payroll and other bills.
• Loans can be offered with long-term repayments in order to keep payments affordable—up to a maximum of 30 years. Terms are determined on a case-by-case basis.
• Businesses will apply for loans online and select “Economic Injury” as the reason for seeking assistance.
• SBA offers disaster assistance via its customer service center. If you have questions or want to check if your state is eligible, contact U.S. Small Business Administration via phone at 800-659-2955 (TTY: 800-877-8339) or e-mail disastercustomerservice@sba.gov.

The SBA has created the "Coronavirus (COVID-19): Small Business Guidance & Loan Resources" website located here.

The coronavirus situation is changing rapidly, as are the updates to various relief efforts. We will continue to monitor news and keep you updated as clarification is provided.

If you have questions, be sure to reach out to us. Our entire team is here to support and guide you!

March 27, 2020

“The Families First Coronavirus Response Act” (FFCRA), which goes into effect April 1, 2020 and expires December 31, 2020, responds to the coronavirus outbreak by providing additional assistance in the areas of COVID-19 testing, sick leave, food assistance and more. We’ve compiled key details of FFCRA that we believe you need to know.

In summary, the Act:

• Requires private insurance plans to provide free COVID-19 testing.
• Requires employers to provide emergency paid sick leave to workers affected by COVID-19 and expands family and medical leave.
• Offers increased funding for state unemployment insurance, food stamp and nutritional programs.

More specifically, here’s what FFCRA means for both business owners and employees in the areas of sick leave and expanded family and medical leave.

• Employees are eligible for up to two weeks of sick leave (full pay for self, 2/3 pay for family care) for illness, quarantine or school closures.
• Employees are eligible for up to 12 weeks of FMLA leave for school closures (10 days unpaid and then up to 10 weeks at 2/3 pay).
• FMLA expansion covers:

1. Employers with fewer than 500 employees.
2. Employees who have been employed for at least 30 calendar days (some exclusions may apply).
3. Employees who must care for children under the age of 18 in the event of school and place-of-care closures or if care provider is unavailable due to a public health emergency with respect to COVID-19.

• Emergency paid sick leave covers:

1. Employers with fewer than 500 employees.
2. All employees no matter the length of employment (some exclusions may apply).

• Small businesses with fewer than 50 employees may qualify for exemption from the requirement to provide leave due to school closings or child care unavailability if the leave requirements would jeopardize the viability of the business as a going concern.

The coronavirus situation is changing rapidly, as are the updates to various relief efforts. We will continue to monitor news and keep you updated as clarification is provided.

Update March 31, 2020

Paid Sick Leave Credit: 

For an employee who is unable to work because of Coronavirus quarantine or self-quarantine or has Coronavirus symptoms and is seeking a medical diagnosis, eligible employers may receive a refundable sick leave credit for sick leave at the employee's regular rate of pay, up to $511 per day and $5,110 in the aggregate, for a total of 10 days. For an employee who is caring for someone with Coronavirus, or is caring for a child because the child's school or child care facility is closed, or the child care provider is unavailable due to the Coronavirus, eligible employers may claim a credit for two-thirds of the employee's regular rate of pay, up to $200 per day and $2,000 in the aggregate, for up to 10 days. Eligible employers are entitled to an additional tax credit determined based on costs to maintain health insurance coverage for the eligible employee during the leave period. A similar credit is available for self-employed individuals.

Child Care Leave Credit: 

In addition to the sick leave credit, for an employee who is unable to work because of a need to care for a child whose school or child-care facility is closed or whose child care provider is unavailable due to the Coronavirus, eligible employers may receive a refundable child care leave credit. This credit is equal to two-thirds of the employee's regular pay, capped at $200 per day or $10,000 in the aggregate. Up to 10 weeks of qualifying leave can be counted towards the child-care leave credit. Eligible employers are entitled to an additional tax credit determined based on costs to maintain health insurance coverage for the eligible employee during the leave period. A similar credit is available for self-employed individuals.

Eligible employers who pay qualifying sick or child-care leave can retain an amount of the payroll taxes equal to the amount of qualifying sick and child-care leave that they paid, rather than deposit them with the IRS. The payroll taxes that are available for retention include withheld federal income taxes, the employee share of social security and Medicare taxes, and the employer share of social security and Medicare taxes with respect to all employees. If there are not sufficient payroll taxes to cover the cost of qualified sick and child care leave paid, employers will be able file a request for an accelerated payment from the IRS.

Post this notice! - Employers MUST post a notice of the Families First labor requirements in a conspicuous place on its premises. Click here to download and print this notice.

E-mail the notice! - An employer may satisfy the posting requirement by e-mailing or direct mailing the notice to employees, or by posting this notice on an employee information internal or external website. If your employees are working from home, this may be the only way to let them know the benefit exists.

Keep detailed records! - Be prepared to defend your request for federal assistance. Keep good records of who's asked for paid time off because of COVID-19 related circumstances. Ask your employee to provide a doctor's note when appropriate, along with a narrative written by the employee describing who in their family is infected or suspected of being infected with COVID-19 along with symptoms. Make sure the note is dated and relates to an approved reason for leave.

You may also view important FAQs from the Department of Labor here.

If you have questions, be sure to reach out to us. Our entire team is here to support and guide you!

March 27, 2020

The Treasury Department and the IRS have announced special payment relief in response to the COVID-19 pandemic. This information is contained in Notice 2020-18. Below, you will find a list of frequently asked questions in reference to the Internal Revenue Service’s (IRS) Notice 2020-18 (PDF). In this Notice, the Treasury Department and the IRS announced special Federal income tax return filing and payment relief in response to the ongoing COVID-19 emergency.

You can review the IRS page for additional information here:

https://www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers.

Frequently Asked Questions

Question 1: Who is eligible for relief under the Notice? 

Answer: Any person with a Federal income tax return or payment due on April 15, 2020 is eligible for relief under the Notice. “Person” includes any type of taxpayer such as an individual, a trust, an estate, a corporation or any type of unincorporated business entity. The payment due refers to both 2019 Federal income tax payments (including payments of tax on self-employment income) and 2020 estimated Federal income tax payments (including payments of tax on self-employment income)—regardless of the amount owed. The return or payment must be due on April 15, 2020—this relief does not apply to Federal income tax returns and payments due on any other date.

Question 2: Do I have to actually be sick, quarantined or have any other impact from COVID-19 to qualify for payment relief?

Answer: No, you do not have to be sick, quarantined or have any other impact from COVID-19 to qualify for relief. You only need to have a Federal income tax return or payment due on April 15, 2020 as described above.

Question 3: I am a fiscal year filer. My Federal income tax return for fiscal year 2019 is due on April 15, 2020. Am I an “Affected Taxpayer” eligible for relief under the Notice?

Answer 3: Yes, the relief provided in the Notice applies to Federal income tax returns and payments in respect of an Affected Taxpayer’s 2019 taxable year and postpones those 2019 return filings and payments due on April 15, 2020 until July 15, 2020. If your Federal income tax return for your fiscal year ending during 2019 is due on April 15, 2020, whether that is the original due date or the due date on extension, your due date is postponed to July 15, 2020.

Question 4: Does this relief apply to state tax liabilities? 

Answer: No, this relief applies only to Federal income tax payments. State filing and payment deadlines vary and are not always the same as the Federal filing and payment deadline. We urge you to check with your state tax agencies for those details. More information is available at https://www.taxadmin.org/state-tax-agencies.

Question 5: I haven’t filed my 2019 income tax return yet (that would have been due on April 15), but I expect to file it by July 15. What do I need to do?

Answer: Nothing, except file and pay any tax due with your return by July 15. You don’t need to file any additional forms or call the IRS to qualify for this automatic Federal tax filing and payment relief. If you expect a refund, you are encouraged to file your return as soon as you can so that you can receive your refund. Filing electronically with direct deposit is the quickest way to get refunds. If you need more time beyond July 15 to file your return, request an automatic extension of time to file as described next.

Question 6: What if I am unable to file my 2019 income tax return (that would have been due on April 15) by July 15, 2020?

Answer: If you are an individual, you can request an automatic extension to file your Federal income tax return if you can’t file by the July 15, 2020 deadline. The easiest and fastest way to request a filing extension is to electronically file Form 4868 through your tax professional, tax software or using the Free File link on IRS.gov. Businesses, including trusts, must file Form 7004. 

You must request the automatic extension by July 15, 2020. If you properly estimate your 2019 tax liability using the information available to you and file an extension form by July 15, 2020, your tax return will be due on October 15, 2020. To avoid interest and penalties when filing your tax return after July 15, 2020, pay the tax you estimate as due with your extension request.

Question 7: I already filed my 2019 income tax return (that would have been due on April 15) and I owe taxes, but I haven’t paid yet. What do I need to do to avoid interest and penalties?

Answer: To avoid interest and penalties, pay your taxes in full by July 15, 2020. If you filed Form 1040 or Form 1040-SR, the tax payment amount can be found on line 23. If you filed Form 1040-NR, the tax payment amount can be found on line 75. For a corporation filing Form 1120, the tax payment amount can be found on line 35.

Interest and penalties will begin to be charged after July 15 for any amount remaining unpaid by that date.

Question 8: I already filed my 2019 income tax return that would have been due on April 15 and scheduled a payment of taxes for April 15, 2020. Will this payment be automatically rescheduled to July 15, 2020?

Answer: No, the payment will not be automatically rescheduled to July 15, 2020. If you do nothing, the payment will be made on the date you chose. Here is information on how to cancel and reschedule your payment:

• If you scheduled a payment through IRS Direct Pay, you can use your confirmation number from the payment to access the “Look Up a Payment” feature. You can modify or cancel a scheduled payment until two business days before the payment date. The email notification you received when you scheduled the payment will contain the confirmation number.
• If you scheduled a payment through the Electronic Federal Tax Payment System (EFTPS), click on “Payments” from the EFTPS home page, login, click “Cancel a Tax Payment” from the left menu and follow the instructions. You must do so at least two business days before the scheduled payment date.
• If you scheduled a payment as part of filing your tax return (authorizing an electronic funds withdrawal), you may revoke (cancel) your payment by contacting the U.S. Treasury Financial Agent at 888-353-4537. You must call to make a payment cancellation request no later than 11:59 p.m. ET two business days prior to the scheduled payment date.
• If you scheduled a payment by credit card or debit card, contact the card processor to cancel the payment.

Question 9: The Notice postpones the deadline for first quarter 2020 estimated income tax payments due on April 15, 2020. What about second quarter estimated tax payments due on June 15? Have they been postponed as well?

Answer: No, second quarter 2020 estimated income tax payments are still due on June 15, 2020. First quarter 2020 estimated income tax payments are postponed from April 15 to July 15, 2020.

Question 10: Does this relief provide me more time to contribute money to my IRA for 2019?

Answer: Yes. Contributions can be made to your IRA for a particular year at any time during the year or by the due date for filing your return for that year. Because the due date for filing Federal income tax returns has been postponed to July 15, 2020, the deadline for making contributions to your IRA for 2019 is also extended to July 15, 2020. For more details on IRA contributions, see Publication 590-A - Contributions to Individual Retirement Arrangements (IRAs).

Update April 9, 2020

IRS extends more tax deadlines to cover individuals, trusts, estates corporations and others

Click for chart of extended payments and returns.

If you have questions, be sure to reach out to us. Our entire team is here to support and guide you!