On March 17, 2020 the White House announced, in correlation with The Treasury Department, a plan to provide working adults with a stimulus payment of $1000.00 within the next two of weeks, if not sooner. We are waiting for guidance from Congress as to what this looks like and who is to receive this stimulus. Please be advised that we have yet to understand if this is a taxable event.
The Treasury has also announced the use of CPFF (Commercial Paper Funding Facility) to provide short term credit to business affected by the COVID-19 pandemic. These funds are in place ensure funding for continue operations, to pay employees, etc. We are not yet aware of the APR associated with the short-term line of credit.
Another outcome of this announcement is the proposed deferral of tax liability payments for 90 days without penalty [expected due date set to July 15, 2020]. The deferrals equate to $1,000,000.00 per individual filing and $10,000,000.00 per large business filing. This is in response to the economic downturn to ensure Americans have the funds needed to maintain their daily needs. Prior to this announcement, California announced their initiative deferring tax liability payments to ensure California filers have the monetary means to maintain their daily needs.
At this time, the Internal Revenue Service has not extended the time to file extensions and/or tax returns. Please be advised, if you owe more than the stipulated deferral amounts, the excess needs to be paid timely.
The HUD announced that all foreclosures and evections that were in process will now be suspended until further notice while we, as a country, come together to fight this pandemic.
We extend ALL our clients as a precautionary measure, so rest assured you will be extended and have additional time to pay. We will process as many tax returns in a timely fashion ensuring quality and compliance.
We will continue to provide updates as they are available. So, please stay tuned.