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Coronavirus (COVID-19): Tax Relief for Small Businesses

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Businesses across the country are being affected by the coronavirus (COVID-19). Fortunately, Congress recently passed a law that provides at least some relief. In a separate development, the IRS has issued guidance allowing taxpayers to defer any amount of federal income tax payments due on April 15, 2020, until July 15, 2020, without penalties or interest.

New law
On March 18, the Senate passed the House’s coronavirus bill, the Families First Coronavirus Response Act. President Trump signed the bill that day. It includes:

  • Paid leave benefits to employees,
  • Tax credits for employers and self-employed taxpayers, and
  • FICA tax relief for employers.

Tax filing and payment extension

In Notice 2020-18, the IRS provides relief for taxpayers with a federal income tax payment due April 15, 2020. The due date for making federal income tax payments usually due April 15, 2020 is postponed to July 15, 2020.

Important: The IRS announced that the 2019 income tax filing deadline will be moved to July 15, 2020 from April 15, 2020, because of COVID-19.

Treasury Department Secretary Steven Mnuchin announced on Twitter, “we are moving Tax Day from April 15 to July 15. All taxpayers and businesses will have this additional time to file and […]

By |March 23rd, 2020|extension, extensions, New Tax Laws, tax deadlines|0 Comments

2019 Q4 Tax Calendar: Key Deadlines for Businesses and Other Employers

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Here are some of the key tax-related deadlines affecting businesses and other employers during the fourth quarter of 2019. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact your Linkenheimer CPA to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements.

October 15

  • If a calendar-year C corporation that filed an automatic six-month extension:
    • File a 2018 income tax return (Form 1120) and pay any tax, interest and penalties due.
    • Make contributions for 2018 to certain employer-sponsored retirement plans.

October 31

  • Report income tax withholding and FICA taxes for third quarter 2019 (Form 941) and pay any tax due. (See exception below under “November 12.”)

November 12

  • Report income tax withholding and FICA taxes for third quarter 2019 (Form 941), if you deposited on time (and in full) all of the associated taxes due.

December 16

  • If a calendar-year C corporation, pay the fourth installment of 2019 estimated income taxes.
By |September 11th, 2019|extension, tax deadlines|0 Comments

California Grants Disaster Relief to Certain Employers

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California grants disaster relief to certain employers. The CA Employment Development Dept. is giving affected employers extra time to file state payroll reports and to deposit state payroll taxes without penalty or interest. This applies to employers in Amador, Glenn, Lake, Mendocino and Sonoma Counties who were directly affected by storms that began on 2/25/19. These employers may request a 60-day extension of time to accomplish these tasks. Requests must be received within 60 days of the original payment or return due dates. If you have questions about this or other filing deadlines, please contact your Linkenheimer CPA. For details: https://bit.ly/2LyrD38

By |March 13th, 2019|business, california, employer, extension|0 Comments

Victims of the Pawnee Fire in Lake County Get Tax Relief

Victims of a California wildfire, dubbed the Pawnee Fire in Lake County, get tax relief from the CA Employment Development Dept. (EDD). Employers directly affected by the fire (which started on 6/23/18) may request a 60-day extension to accomplish some tax-related tasks. The tasks include filing state payroll reports and paying state payroll taxes. No penalty or interest will be charged to employers that are granted extra time. A written request for an extension must be received by EDD within 60 days from the original delinquent date for payments and returns.

By |July 12th, 2018|ca, extension, Fire Relief Info, tax|0 Comments

New PATH Act Provides Major Benefits to Businesses in 2015

With only two weeks remaining until the end of the year, Congress passed the Protecting Americans from Tax Hike (PATH) Act of 2015, which reinstates a large number of tax provisions that had expired in 2014, many of which were not just renewed, but made permanent, while some of the other provisions are extended through 2016, and in some cases, 2019. This gift from Congress comes just in time for the holidays and will have a significant impact on tax payers and businesses. Below are some of the major provisions worth noting. And because California does not conform to some of these tax breaks, please contact us so we can help with your individual and year-end tax planning.

Highlights of the PATH Act:

  • $622 Billion Tax Break Package
  • Over 100 Separate Provisions
  • Permanent Research Tax Credit, Code Sec. 179 Expensing and AOTC (American Opportunity Tax Credit)
  • Five-Year Extension for Bonus Depreciation
  • Delay of Excise Tax on “Cadillac” Plans
  • Moratorium on Medical Device Excise Tax
  • Overall Major IRS Reform

Permanent Extensions for Individuals

  • Earned income tax credit
  • American Opportunity Tax Credit
  • Child tax credit
  • Option to to deduct state and local sales and use taxes instead of state and local income taxes
  • Teachers classroom expense deductions
  • Charitable distributions for IRAs
  • Qualified […]
By |December 29th, 2015|congress, extension, extensions, irs|0 Comments

IRS Automatically Extends Filing for Certain Estates Electing Portability

In estate planning, the concept of “portability” of a deceased spouse’s unused exclusion (DSUE) amount is relatively new. For decedents dying after December 31, 2010, if a first-to-die spouse has not fully used the estate tax exclusion, the DSUE amount can be transferred to the surviving spouse. This was originally passed as a two-year temporary provision until it was made permanent in the American Taxpayer Relief Act of 2012. Estate tax returns are usually required to be filed within 9 months of death to make the deceased spousal unused exclusion election. The IRS released Revenue Procedure 2014-18, providing an automatic extension for certain estates of decedents dying in 2011, 2012 and 2013 to elect portability. The extension applies to estates that would otherwise not have had a filing requirement, and allows the estates to file a return to elect portability until December 31, 2014. It includes the estates of same-sex decedents who were not eligible to elect portability until after the Windsor decision (United States v. Windsor recognized same-sex marriages for purposes of determining marital status of taxpayers under the Internal Revenue Code, the IRS has issued Revenue Procedure 2014-18 to grant limited relief for late elections).

This revenue procedure applies only […]

By |October 28th, 2014|estate, extension, tax|0 Comments

Highlights of the New Tax Deal

  • 39.6% Tax Rate for Incomes Above $400,000 ($450,000 for Families)
  • All Other Bush-Era Tax Rates Extended
  • 20% Maximum Capital Gains/ Dividend Tax Rate
  • Maximum 40% Estate/ Gift Tax Rate
  • Permanent AMT Patch
  • Five-Year Extension of Enhanced Education Credit
  • One-Year Extension of Many Business Extenders
  • Over 30 Extenders Retroactive to Start of 2012