Summary of Relevant Events Related to COVID-19

By Nate Miller, CPA, MS

March 23, 2020

First of all, we hope this message finds you and your family in good health and spirits. We know how troubling and disrupting this current situation is to businesses around the country and, especially, in California right now. As the government works its way through its responses, we want to let you know of some changes that have been signed into law and are effective right now.

Federal and California Tax Filing and Payment Deadlines

As mentioned in a previous email, both Federal and California tax filing and payment deadlines have been moved to July 15 for individuals and businesses. The IRS announced that there will no longer be payment limits that were earlier set in place. 

Estimated Tax Payment Due Dates
Estimated tax payment due dates have also been delayed. For federal purposes, any estimated taxes due on April 15 are extended to July 15. For California purposes, any estimated taxes due prior to July 15 are now due on July 15. This includes the first two quarters’ estimated tax payments.

SBA Loan EIDL Program
A new SBA loan program (the Economic Injury Disaster Loan program) is now accepting applications. All small businesses in California are eligible under this program. The purpose of the loan program is to help businesses pay fixed debts, payroll, accounts payable, and other bills that can’t be paid because of the current disaster. The exact amount of each loan will be determined by an SBA loan officer based on your projected monthly cash shortfall. The interest rate is 3.75% and offers long-term repayments with no prepayment penalty. Even if you have another SBA loan in place, you are still eligible for this program. For a more thorough explanation of the SBA loan program (EIDL), please click here. or visit the SBA site.

Families First Coronavirus Response Act 
The Families First Coronavirus Response Act has been signed by the President and is intended to ease the economic consequences caused by COVID-19. It provides family and medical leave and sick leave to employees and provides tax credits to employers and self-employed individuals. For a more thorough explanation of the Families First Coronavirus Response Act, please click here.

Although our team members are working from home, we still have the resources we need in order to serve your business and accounting needs. As we continue to get more information, we will pass on to you those resources that may ease your mind and cash flow during these tough times. Please reach out to any of us with questions or concerns you may have.