The legislation would give small businesses more time to use emergency loans under the program by extending the eight-week period in which they must use the money to qualify for loan forgiveness to 24 weeks.The bill would also give small businesses more flexibility by changing the so-called 75/25 rule, which requires recipients of funds under the program to use three-quarters of the money for payroll costs and to limit other costs to no more than 25% in order to be eligible for loan forgiveness. The new ratio would be at least 60% on payroll and no more than 40% on other costs.
Due to COVID-19, the IRS is providing relief on a variety of issues as part of the People First Initiative. The IRS is modifying certain activities through the filing and payment deadline, Wednesday, July 15, 2020. Here’s what people need to know about relief related to IRS exams or audits
Field, office and correspondence audits – Generally, the IRS won’t start new field, office and correspondence audits. The agency will continue to work refund claims, where possible, without in-person contact.
However, the IRS may start new audits if needed to preserve the statute of limitations.
• In-person meetings – In-person meetings for current field and office audits are on hold. However, examiners will continue their work remotely, where possible. Taxpayers should respond to any requests for information during this period, if possible.
• Unique situations – Corporations and businesses may want to begin a previously scheduled audit while people and records are available. When it’s in the best interest of both parties and appropriate people are available, the IRS may move forward with an audit. COVID-19 developments could slow activities.
• General requests for information – Taxpayers should reply to all IRS correspondence, if requested.
Earned income tax credit and wage verification reviews – Taxpayers have until July 15, 2020, to respond to the IRS and verify that they qualify for the earned income tax credit or to verify their income. These taxpayers should submit all requested information. If they can’t contact the agency and explain why the information is not available, the IRS won’t deny these credits for a failure to provide information until July 15, 2020.
Independent Office of Appeals – Appeals employees will continue to work their cases. They aren’t currently holding in-person meetings, but conferences may be held by phone or video. Taxpayers should respond to any requests for information form the Independent Office of Appeals.
Statute of limitations – The IRS will continue to protect all statutes of limitations. If statute expirations might be jeopardized during this period, taxpayers are encouraged to cooperate in extending these statutes. Otherwise, the IRS will issue Statutory Notices of Deficiency and pursue similar actions to protect the interests of the government.
Share this tip on social media — #IRSTaxTip: IRS People First Initiative provides relief to taxpayers. https://go.usa.gov/xvstn
Due to COVID-19, the IRS’ People First Initiative provides relief to taxpayers on a variety of issues from easing payment guidelines to delaying compliance actions. This relief is effective through the filing and payment deadline, Wednesday, July 15, 2020.
• Existing Installment Agreements – Under an existing Installment Agreement, payments due between April 1 and July 15, 2020 are delayed. Those currently unable to meet the terms of an Installment Payment Agreement or Direct Deposit Installment Agreement may cancel payments during this period with no default. By law, interest will continue to accumulate on any unpaid balances.
• New Installment Agreements – People who can’t pay all their federal taxes can establish a monthly payment agreement.
• Pending Offer in Compromise applications – Taxpayers have until July 15, 2020, to provide additional information for a pending OIC. The agency generally won’t close any pending OIC request before July 15 without the taxpayer’s consent.
• OIC payments – Taxpayers can delay all payments on accepted OICs until July 15, 2020. Interest may accrue, and missed payments are due when the suspension period ends. Taxpayers can call the number on their acceptance letter to address their needs.
• Delinquent return filings – The IRS will not default an OIC for taxpayers who are delinquent in filing their tax return for 2018. However, they should file any delinquent 2018 return and their 2019 return by July 15, 2020.
• Non-filers – More than 1 million households who haven’t filed tax returns in the last three years are owed refunds. The deadline to get refunds on 2016 tax returns is July 15, 2020. Those who owe taxes on delinquent returns may visit IRS.gov for payment options. The longer the debt is owed, the more penalties and interest accrue.
• Field collection activities – IRS stopped field revenue officer enforcement actions, such as liens and levies. Revenue officers will continue to pursue high-income non-filers and perform other similar activities where necessary.
• Automated liens and levies – IRS delayed issuing new automated and systemic liens and levies. Taxpayers experiencing a hardship due to a levy should reach out to their assigned IRS contact or fax their information to (855) 796-4524.
• Certifications to the State Department – IRS has delayed new certifications of taxpayers who are considered seriously delinquent. This affects a person’s ability to receive a new or renewed passport. Existing certifications will remain in place unless their tax situation changes.
• Private debt collection – IRS will not forward new delinquent accounts to private collection agencies during this period.
Share this tip on social media — #IRSTaxTip: IRS People First Initiative provides relief to taxpayers facing COVID-19 issues. https://go.usa.gov/xvstN
WASHINGTON – With a variety of steps underway to speed Economic Impact Payments, the Treasury Department and the Internal Revenue Service urged people to use Get My Payment by noon Wednesday, May 13, for a chance to get a quicker delivery.
The IRS, working in partnership with Treasury Department and the Bureau of Fiscal Services (BFS), continues to accelerate work to get Economic Impact Payments to even more people as soon as possible. Approximately 130 million individuals have already received payments worth more than $200 billion in the program’s first four weeks.
Starting later this month, the number of paper checks being delivered to taxpayers will sharply increase. For many taxpayers, the last chance to obtain a direct deposit of their Economic Impact Payment rather than receive a paper check is coming soon. People should visit Get My Payment on IRS.gov by noon Wednesday, May 13, to check on their payment status and, when available, provide their direct deposit information.
“We’re working hard to get more payments quickly to taxpayers,” said IRS Commissioner Chuck Rettig. “We want people to visit Get My Payment before the noon Wednesday deadline so they can provide their direct deposit information. Time is running out for a chance to get these payments several weeks earlier through direct deposit.”
After noon Wednesday, the IRS will begin preparing millions of files to send to BFS for paper checks that will begin arriving through late May and into June. Taxpayers who use Get My Payment before that cut-off can still take advantage of entering direct deposit information.
How Get My Payment works
The Get My Payment tool provides eligible taxpayers with a projected Economic Impact Payment deposit date. The information is updated once daily, usually overnight. There is no need to check more than once a day. Taxpayers who did not choose direct deposit on their last tax return can use this tool to input bank account information to receive their payment by direct deposit, expediting receipt.
Non-Filers portal remains available
For those not required to file a federal tax return, the Non-Filers: Enter Payment Info Here tool helps them submit basic information to receive an Economic Impact Payment quickly to their bank account. Developed in partnership between the IRS and the Free File Alliance, this tool provides a free and easy option for those who don’t receive Social Security retirement, survivor or disability benefits (SSDI), Railroad Retirement benefits, Supplemental Security Income (SSI) and VA Compensation and Pension (C&P) benefits. The Non-filers tool is also available in Spanish.
Eligible taxpayers who filed tax returns for 2019 or 2018 will receive the payments automatically. Automatic payments will also be sent to those receiving Social Security retirement, disability benefits, Railroad Retirement benefits, Veterans Affairs benefits or Supplemental Security Income soon.
Watch out for scams related to Economic Impact Payments
The IRS urges taxpayers to be on the lookout for scams related to the Economic Impact Payments. To use the new app or get information, taxpayers should visit IRS.gov. People should watch out for scams using email, phone calls or texts related to the payments. Be careful and cautious: The IRS will not send unsolicited electronic communications asking people to open attachments, visit a website or share personal or financial information.
Stay informed with Economic Impact Payment FAQs; Social Media platforms
Taxpayers should check the Frequently Asked Questions (FAQs) for more information.
There’s a lot of attention right now on programs like the Paycheck Protection Program and disaster loans offered by the Small Business Administration. Those options were meant to help business owners receive immediate funding as a crisis management strategy resulting from COVID-19. But there’s another big federal benefit that may apply to you: The Payroll Tax Credit (also known as the Employee Retention Credit).
1. The credit is part of the federal response to the pandemic.
As part of one of the numerous pandemic-related stimulus bills passed by Congress in March, the Payroll Tax Credit, otherwise known as the Employee Retention Credit, is a way to receive funding from the government. Eligible businesses must have been impacted by COVID-19 between March 12, 2020 and January 1, 2021. The intention of this credit is to help keep employees on the payroll for as long as possible by providing some tax incentives to employers. Non-profits also qualify, but self-employed individuals do not.
2. The credit only applies if you don’t take money from the Paycheck Protection Program.
Because the credit is intended to provide additional subsidies to help employers maintain payroll levels, you can not apply for it if you’ve already opted in to the Paycheck Protection Program, which offered low cost forgivable loans that also cover payroll expenses. You are, however, eligible to apply for other types of loans, like the Economic Injury Disaster Loans, from the SBA.
3. The credit is in addition to the tax credit for Emergency Family Medical Leave.
This credit is not to be confused with the tax credit under the Families First Coronavirus Response Act (which includes Emergency Family Medical Leave provisions). This article is not intended to go into detail on that legislation, but know that if you’re paying for your employees to take time off for themselves or their families as a result of COVID-19, you’re also entitled to an additional credit to help you afford those expenses. You can use both tax credits, but just not for the same wages. You can learn more about the Families First Legislation on The Hartford’s Paid family and Medical Leave Resource Center.
4. You must show your business has been significantly harmed by the pandemic.
To be eligible for the credit, you must demonstrate that either your business had to shut down during a payroll quarter because of the pandemic (as a result of a government order), or that your business suffered a 50% or greater loss of revenue during the quarter when compared to the previous year.
5. The credit is quite generous.
The credit is 50% of up to $10,000 of each employee’s wages (including healthcare premiums) each quarter through December 31, 2020. In other words, it’ll likely be $5,000 per employee each quarter, assuming they make more than $10,000 that quarter. So, if you have ten employees, you’ll get a $50,000 credit against your payroll taxes that quarter. If you had more than 100 full time employees in 2019, you include only full time workers. If you had less than 100 full time employees in 2019, you can include both full time and part time workers.
6. The credit is taken on your payroll tax returns.
This is not an income tax credit. It’s a payroll tax credit. That means you can take it against the employer’s share of FICA you owed during the eligible quarter when you do quarterly Federal 941 payroll tax returns.
7. The big news: it’s refundable!
More importantly, it’s refundable, which means that whatever portion of the credit you don’t need will be considered an over-payment of payroll taxes and will be returned back to you as cash.
8. You can also reduce your tax deposits.
If you think that you’ll be qualifying for the credit during a quarter, the IRS will allow you to hold back on your tax deposits so that you’ll have more cash available, rather than waiting for them to send you the cash back after you file your 941.
This payroll tax credit may not be for everyone, but it’s certainly applicable for your business if you’re not receiving any other aid. If that’s the case, it could be a substantial cash infusion from the government and may make the difference for your company’s survival. Talk to your accountant and payroll company to make sure you’re taking advantage!
|Important IRS Update!|
|The IRS published Notice 2020-32 indicating that expenses paid to qualify for loan forgiveness under the Paycheck Protection Program (such as payroll costs, rent, utilities, and interest on mortgage obligations) will not be deductible. This seems contrary to the intent of the original legislation, and it is possible the next COVID-19 bill (assuming there is one) could clarify that such expenses are, in fact, deductible. At this time, businesses should prepare for these amounts to be non-deductible. We will be sure to update you if this changes.|
Form 941 – added clarification
The note added and attached to Form 941 and its instructions clarifies that, to claim the employee retention credit, employers that paid qualified wages during the period from March 13, 2020, through March 31, 2020, are to include 50% of those wages together with 50% of any qualified wages paid during the second quarter of 2020 on the employer’s second quarter Form 941, Form 941-SS or Form 941-PR.* The release explicitly states that employers are not to include the credit on the first quarter Form 941, Form 941-SS or Form 941-PR.
*Form 941-SS is used to report social security and Medicare taxes for workers in American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands. Form 941-PR is used by employers in Puerto Rico to report income taxes, social security tax, or Medicare tax withheld from employees’ paychecks and to pay the employer’s portion of social security or Medicare tax.
CARES Act – Employee retention credit
The employee retention credit was established as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (Pub. L. No. 116-136) signed into law by the president on March 27, 2020.
The employee retention credit allows a refundable tax credit equal to 50% of qualified wages (including qualified health plan expenses) paid
corresponding taxes imposed on railroad employers.
- Eligible employers: The credit is generally available to employers that carry on a trade or business during calendar year 2020 that either: (1) is fully or partially suspended due to orders from a governmental authority limiting commerce, travel, or group meetings due to COVID-19; or (2) has a significant decline in gross receipts (i.e., gross receipts for a calendar quarter are less than 50% of gross receipts for the same quarter in the prior year).
- Qualified wages: For employers that averaged more than 100 full-time employees in 2019, qualified wages includes wages paid to employees for time that they are not providing services due to one of the two reasons described above—full or partial suspension, or significant decline in gross receipts. For eligible employers with an average of 100 or fewer full-time employees in 2019, qualified wages includes wages paid to any employee during one of these periods.
- Effective dates: The credit applies with respect to qualified wages paid from March 13, 2020, through December 31, 2020.
Additional considerations and limitations on the ability to claim the employee retention credit may apply. Employers that may be eligible to claim the employee retention credit need to consider the criteria for eligibility and measuring qualified wages, as well as how to properly report and claim the credit.
|Clarification of recent guidance extending April 15 due date for individuals and corporationsThe previously issued Important Notice, N-20-2, Announcement Regarding Relief from Certain Filing and Payment Deadlines due to the Novel Coronavirus, COVID-19, that extended the April 15, 2020, due date to July 15, 2020, for New York State personal income tax and corporation tax returns originally due on April 15, 2020, has been updated. The update clarifies that the relief applies to personal income taxes administered by the Tax Department that are reported on your New York State personal income tax return, such as:New York City resident tax,Yonkers resident income tax surcharge,Yonkers nonresident earnings tax, andmetropolitan commuter transportation mobility tax (MCTMT) on net earnings from self-employment.To view the updated guidance, visit N-20-2, Announcement Regarding Relief from Certain Filing and Payment Deadlines due to the Novel Coronavirus, COVID-19. For additional information, visit Tax Department response to novel coronavirus (COVID-19).|
첨부된 내용 참조하시기 바랍니다.
연방정부에서 몇가지 조건을 충족 시키면 원금도 탕감해 주는 장기 저리 융자 프로그램 두 가지를 제공하고 있습니다. 이 두가지 융자는 소상인 및 중소기업 (Small Business), 501(c) 501(d) 501(e) 허가를 받은 교회, 비영리단체 등이 신청할 수 있습니다.
• 경제적 피해 재난 융자 (SBA Economic Injury Disaster Loan)
• 급여 보호 융자 (SBA Paycheck Protection Loan).
재난이 발생할 때 연방정부에서 제공하는 “경제적 피해 재난 융자 (SBA Economic
Injury Disaster Loan)” 가 있고 또 하나는 3월26일에 새롭게 제정된 “급여 보호 융자 (SBA Paycheck Protection Loan)” 입니다.
두 가지 융자 프로그램이 혼동 되고 있고 새로운 융자 프로그램인 “급여 보호 융자 (SBA Paycheck Protection Loan)”에 대해서는 아직 자세한 정보가 시중 금융기관에 전달이 되지 않아 일시적인 혼선이 가중 되고 있습니다. 이에 두 가지 융자 프로그램을 소개하는 안내문을 보내 드리오니 경제적 어려움을 극복하는데 참고 하시기 바랍니다.
두가지 융자를 모두 신청 하실 수도 있으며 두가지 중에 한가지만 신청 하실 수도
있습니다. 두가지 융자를 모두 신청 하실 경우에는 융자액을 서로 다른 용도로 사용
하셔야 합니다. “급여 보호 융자 (SBA Paycheck Protection Loan)” 는 “경제적 피해 재난 융자 (SBA Economic Injury Disaster Loan)”를 상환하는데 사용할 수도 있습니다.
각 사업체, 교회, 비영리단체가 처한 상황을 고려 하셔서 선택 하시기 바랍니다.
융자는 연방정부가 각 융자 프로그램에 책정한 예산의 한도 내에서 선착순으로 제공됩니다. 신속히 융자 신청을 하시기 바랍니다. “경제적 피해 재난 융자 (SBA Economic Injury Disaster Loan)”은 2020년12월31일까지 “급여 보호 융자 (SBA Paycheck Protection Loan)”은 2020년6월30일까지만 제공 됩니다.
“경제적 피해 재난 융자 (SBA Economic Injury Disaster Loan)”
연방정부가 재난이 발생할 때마다 제공하는 융자 프로그램.
아래 웹싸이트에서 연방정부 Small Business Administration (SBA)에 간단한 융자신청서 작성. 아래 웹싸이트 융자 신청서는 10분 – 20분이면 어렵지 않게 작성 가능.
위의 웹싸이트에서 간단한 융자 신청서를 작성한 후 3일 이내에 1만불이 먼저 긴급지원됨. 긴급 지원 1만불은 신청서 심사가 끝나지 않은 상태에서 먼저 송금되며 나중에 융자 심사에 탈락하여 융자 허가를 받지 못하는 경우에도 긴급 지원 1만불은 상환하지 않음. 위의 웹싸이트에서 융자 신청서 작성 후에 융자 심사를 위한 추가 서류 제출 요청이 있을 수 있으나 융자 심사 결과와 무관하게 긴급 지원 1만불은 먼저 송금되며 상환 의무 없음.
융자 허가가 나오는 경우에는 긴급 지원된 1만불 중에 다음 조건에 부합하는 액수 만큼만원금이 탕감되며 상환하지 않아도 됨. (최대 원금 탕감액은 1 만불) 급여, 유급휴가, 모기지, 렌트비, 판매 감소로 감당할 수 없는 채무액, 공급망 교란으로 인한 원가 상승 융자액을 매상 감소 충당, 채무 재금융, 다른 연방기관 채무 상환, 세금 벌금, 수리 비용, 주주 배당금 지급 목적으로 사용할 수 없음.
Small Business 용 이자: 3.75%, 비영리단체 용 이자: 2.75%
최대 2백만불 융자 / 최장 30년 상환 / 융자 후 1년 뒤 상환 시작
융자 대상: 직원 500명 이하 2020년1월31일 이전에 개업한 Small Business, 501C3 교회, 비영리단체, Independent Contractor, Sole Proprietor
크레딧 스코어로만 융자 승인 가능, 융자 상환 능력이나 세금 보고 실적 없이도 융자 승인 가능. 이전 파산 기록 있어도 융자 승인 가능.
위의 웹싸이트에서 융자 신청서를 접수하고 나중에 융자 승인을 받지 못하는 경우 먼저 지급 받은 긴급 지원 1만불은 상환하지 않음.
2십만불 이하 융자는 개인 보증 (Personal Guarantee) 불필요, 담보 제공 불필요. 다른 곳에서 융자 받을 수 없음을 증명 하지 않아도 됨. 즉, 다른 Credit Line 이 있어도 융자 가능
“급여 보호 융자 (SBA Paycheck Protection Loan)”
이번 코로나바이러스 사태로 인한 경제 위기 극복을 위해 특별히 제정된 융자 프로그램. 아직 시중 금융기관들도 이 융자에 대한 자세한 정보가 없음. 2 주일 내로 시중 금융기관에서 실제 융자를 시작할 것으로 예상.
이 융자 프로그램은 은행 등 시중 융자 기관에 신청. (연방정부 Small Business
Administration 에 직접 신청 하는 것이 아님)
원금 탕감 조건: 아래 목적으로 8주 동안 사용된 액수는 원금을 탕감.
급여 (10불 이상 급여 수여자의 급여는 비례계산) / 모기지 이자 / 2020년2월15일
이전에 작성된 임대 계약서에 따른 렌트비 / 2020년2월15일 이전에 시작된 전기,
개스, 수도, 교통, 전화, 인터넷 비용 / 직원 건강보험 비용 원금 탕감을 받으려면 융자 시작일로부터 8 주 동안은 평균 직원 수자를 유지해야 함.
평균 직원 수자는 2019년2월15일 – 2019년6월30일 기간 혹은 2020년1월 1일
– 2020 년 2 월 15 일 기간의 평균 직원 수자로 계산함. 평균 직원 수자를 유지 하지
못하면 원금 탕감액 감소. 10만불 이하 급여 수여자의 급여가 25% 이상 삭감되면 원금 탕감액 감소.
2020년2월15일 – 2020년4월26일 기간에 발생한 직원 수자 감소와 급여 삭감은
직원들을 2020년6월30일 이전에 다시 채용하면 원금 탕감이 줄어들지 않음.
융자 대상: 2020년2월15일 이전에 개업한 직원 500명 이하 Small Business, 501C3교회, 비영리단체, 자영업 (Self Employed), Sole Proprietor, 프리랜서, 우버드라이버와 같은 Gig Worker
융자 액수: 지난 1년간 월평균 급여 지급액의 2.5배까지 융자 가능 (최대 천만불까지)월평균 급여 계산에는 십만불 이하 임금 수여자만 포함 되며 유급병가, 건강보험 등 기타 직원 복지 비용도 포함.
이자 4% 이하 / 최장 10년 상환 / 융자금 상환은 6개월 뒤 시작
담보 제공 불필요, 개인 보증 (Personal Guarantee) 불필요
위에 설명된 융자와 별도로 Payroll Tax 에 관한 혜택도 있음.