As we have done with the information being issued by the Federal Government regarding the COVID-19 Emergency, we also would like to continue to keep everyone up to date on other changes and how we, the DentalCPAs team, are working with our clients.
We learned this morning that another piece of legislation has been passed and will move onto the President for his signature. The White House has indicated that the President is expected to sign this bill as it will help many of the taxpayers across the country along with small business owners as well. So once again, we ask that you be patient with us, allow us to receive, read, and digest the bill so we can issue a bulletin on its key points that will impact most of our clients.
We also would like to remind our clients that we are offering one-on-one calls this week with any of our clients who are interested in discussing their specific situation. While we have been asked to participate in multiple webinars occurring this week, which would provide a great marketing opportunity for us, we at DentalCPAS have decided to dedicate this week to these one-on-one calls so that we may focus on our clients and in return they can focus on their families, teams, and businesses so they might come out of this crisis prepared to ramp their practices up as quickly and painlessly as possible.
Since the IRS has delayed the April 15th tax filing and tax payment date to July 15th, over this past weekend the leadership of the firm strategized to prioritize our work over the next several weeks as follows: First & foremost, we will be focusing on the one-on-one client consultations regarding COVID-19 related business and personal matters, second, filing income tax returns where refunds are expected so we can get money back into our client’s hands quickly and third, the preparation of those returns with taxes owed that would have normally been due on April 15th which have been delayed until July 15th. As a reminder, if anyone is expecting to owe an April 15th 2020 estimated tax payment those too have been delayed until July 15th. As of today, June 15th 2020 estimated tax payments are still due on June 15th. Lastly, the due date for 2019 IRA contributions have also been delayed until July 15th.
The last page of this bulletin is a one-page summary of the legislation that was passed last week, the Families First act simply as a refresher from our earlier bulletin in this bill.
Lastly, many states have also modified the dates of their states filing deadlines as well, below is a summary of information from the Comptroller of Maryland regarding their filing due dates and we encourage everyone to continue checking their states websites for updates on filing deadlines as well. Drive/Suite 405/Timonium, MD 21093 410/453/5500 410/453/5522 Fax 800/772/1065 National
IMPACT OF COVID-19 ON MARYLAND TAX FILING
On March 5, 2020, Governor Lawrence J. Hogan, Jr. proclaimed a state of emergency and a catastrophic health emergency related to COVID-19.
The following addresses actions taken by the Governor and the Office of the Comptroller of Maryland due to the unprecedented situation caused by the COVID-19 pandemic.
Extension of Time for Income Tax Filing and Income Tax Payments
Since the federal government extended the deadline for filing 2019 income tax returns, submitting 2019 income tax payments and 2020 first quarter estimated tax payments by 90 days, to July 15, 2020, Maryland has afforded the same relief at the Maryland level and applies to all Maryland taxpayers. The due date for the April quarterly 2020 estimated payment is also extended to July 15, 2020. The extension to July 15, 2020 for filing of returns and payment of 2019 taxes is automatic; no filing or request is required to take advantage of the extended deadline.
Cessation of collection efforts
The Governor also issued an Order on March 12, 2020, Maryland is effectively suspending its collection efforts. This is effective immediately and shall continue until 30 days after the lifting of the state of emergency by the Governor. Pursuant to this action, the Comptroller’s office will not send out lien warning notices, issue liens, attach bank accounts, hold up the renewal of any license including Maryland driver’s licenses, or offset vendor payments for Maryland taxes. Taxpayers receiving notices from the Comptroller’s Office during the current COVID-19 crisis should contact the telephone number or email address on the notice for additional information. Furthermore, taxpayers who are currently on a payment plan for delinquent business and/or income taxes and are unable to make those payments due to the COVID-19 crisis should contact this office at the following email to discuss delaying payments:
To allow this office to respond quickly to requests for delaying payments, Comptroller Franchot suggests that the following information is provided:
Individual Taxpayers: Name, address, daytime phone number and the last four digits of the taxpayer’s social security number.
Business Taxpayers: Business name, contact name, daytime telephone number, central registration number (CR) or federal identification number (FEIN).
Extensions for Other Business Taxes
Sale and use tax
The Comptroller has extended the time to file sales and use tax returns for sales taking place in February, March, and April of 2020 to June 1, 2020. Sales and use tax returns, and their accompanying payments, are due no later than June 1, 2020. Do not combine sales for separate reporting periods into a single return. Instead, please file the separate returns reflecting the sales and the tax collected for each filing period as if they had been filed according to their original due dates.
Any withholding payments due for periods including February, March, and April 2020, may be submitted by June 1, 2020, without incurring penalties or interest. Do not combine withholding for separate reporting periods into a single return. Instead, please file the separate returns reflecting the tax withheld for each filing period as if they had been filed according to their original due dates.
FAMILY FIRST ACT LEGISLATION – SUMMARY
Please note the New IRS website specifically for covid19 www.irs.gov/coronavirus and frequently check it for the most recent updates.
- Effective April 2, 2020 & only for COVID-19 related issues, NOT lack of work due to general closures
- Employees who are NOT sick nor caring for a sick family member are NOT covered and can file for unemployment
- The Notice of this law MUST be posted & shared with ALL employees
- Eligible employees can receive up to 2 weeks of paid sick leave for:
- 80 hours for a full-time employee
- Equivalent to the average hours over a 2-week period for a part-time employee
- Eligible employees include those who experience any of the following circumstances:
- Is sick
- Caring for someone who is sick
- Showing signs of being sick or seeking diagnosis and care
- Caring for a child whose school has closed
- Those that are sick, isolated or seeking treatment can receive their full pay, up to $510/day for 10 days, max of $5,110
- Those that are caring for a child whose school or daycare has closed may receive 2/3rds of their pay up to $200/day for 10 days and a max of $2,000
- Businesses who pay these benefits are expected to receive a tax credit for the wages paid under this act and any health insurance premiums during this time period through payroll tax credits
- Employees can use earned sick leave before using benefits under this law
- This bill also permits up to 12 weeks of paid family leave for:
- Eligible employees – those who have worked at least 30 days
- First 10 days may be unpaid, however, employee may be eligible for sick leave pay during this time or any unpaid benefit time
- For those caring for children who’s school or childcare provider has closed ONLY
AND employees who are unable to work or telework
- Those that are caring for a child whose school or daycare has closed may receive 2/3rds of their pay up to $200/day for 10 weeks and a max of $10,000
- Pay for those without a regular schedule will be based on the average daily hours over past 6 months & if worked less than 6 months, expected daily hours
- Employers with fewer than 50 employees can file for an exemption if paying for this leave will jeopardize the viability of the business going forward
- Businesses who pay these benefits are expected to receive a full tax credit for the wage paid
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