March 25, 2020
Georgia Tax filing update – now officially July 15th.
www.gscpa.org/content/Home/News/Professional-News/GEORGIA-INCOME-TAX-AND-TAG-RENEWAL-DEADLINES-EXTENDED.aspx
(This is link is provided by Georgia Society of CPA’s)
This is from the IRS website in the Q&As on tax relief - The IRA contribution date is 7/15.
https://www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers
IRAs
A17. Yes. Contributions can be made to your IRA, for a particular year, at any time during the year or by the due date for filing your return for that year. Because the due date for filing Federal income tax returns has been postponed to July 15, the deadline for making contributions to your IRA for 2019 is also extended to July 15, 2020. For more details on IRA contributions, see Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs).
HSAs
A21. Yes. Contributions may be made to your HSA or Archer MSA, for a particular year, at any time during the year or by the due date for filing your return for that year. Because the due date for filing Federal income tax returns is now July 15, 2020, under this relief, you may make contributions to your HSA or Archer MSA for 2019 at any time up to July 15, 2020. For more details on HSA or Archer MSA contributions, see Publication 969, Health Savings Accounts and other Tax-Favored Health Plans.
March 23, 2020 - Potential SBA Loan Source for Business Owners
NOTE - We are not promoting nor have we reviewed the various loan terms and lending sources but are sharing information as it becomes available so you can perform your own research to see what might best assist you through your specific circumstances and needs.
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As many of you are aware CSRA Business Lending is a non-profit Certified Development Company of SBA serving businesses and banks throughout Georgia and South Carolina by offering SBA-504 loans. In an effort to keep you updated on the availability SBA Disaster Loans related to Corona Virus (COVID-19) we wanted to provide this update.
Updated 4:20 EST - SBA just held a conference call with its lending partners and provided additional detail on the SBA Economic Injury Disaster Loan Program and provided this additional detail on the parameters they have established for the business working capital loans now available relating to Corona Virus COVID-19. All businesses in the two states we serve (Georgia and South Carolina) are now eligible to apply online. These will be direct loans from SBA and will be repaid directly to SBA. The details on the loans and eligibility provided a little while ago:
- Loan amounts will be up to $2.0 million for a business applicant and all its affiliates.
- They will use credit scores in their decisions for approval.
- Rates for businesses will be 3.75% fixed for 30 years.
- All loans will have a repayment term of 30 years. Payments can be deferred for the first 12 months.
- In a Phase I application (which will be most businesses) the maximum loan amount will be 50% of their gross profit from their last completed year. In other words off last years tax returns... Sales - Cost of Goods Sold = Gross Profit x 50% = Maximum Loan Amount.
- Larger businesses can proceed to a Phase II application that will require additional documentation if they need more than $500,000.
- Loans will be collateralized if over $25,000 if collateral is available with real estate being the preferred collateral.
- All 20% or more owners will fully personally guaranty the loan. Changing ownership prior to application to lower an individuals ownership to avoid a personal guaranty could jeopardize eligibility.
- Proceeds may be used for working capital for business expenses only including supplies and materials, payroll, debt payments, utility, and other operational costs. Essentially any expense that appeared in the business expenses in their financials in the past 12 months is likely eligible. Anything else such as expanding or renovating a facility or making capital equipment purchases (vehicles or other equipment) is not.
- No debt consolidation will be allowed. The exception would be temporary or interim loans that were taken out since the crisis started for operational expenses may be refinanced. The business can pay regular monthly debt payments as they become due
- Non-profits can apply but not churches, agriculture production, gambling, or sin businesses.
- Timeline is expected to take less than a week for approval using the scoring system after a business applies directly online (they will use tax return transcripts as well to verify applications). Targeting 30 days to close.
- They expect 300,000 to 500,000 applications depending on the length of the Corona Virus Crisis and encourage patience.
- Businesses will be required to retain receipts and evidence of what they spent the proceeds on for a period of 3 years and may be subject to SBA Audit to insure only eligible business expenses were paid.
- Everyone is encouraged to apply online at https://disasterloan.sba.gov/ela (Be aware with peak times the site may be difficult loading. If this happens check back at off peak times).
For additional information please contact the SBA disaster assistance customer service center. Call 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail disastercustomerservice@sba.gov.
Please be aware all Georgia Counties were listed in Georgia's disaster deceleration; however, a portion of South Carolina's counties were included in the North Carolina and Georgia deceleration.
CLICK HERE - TO GO TO THE SBA DISASTER APPLICATION WEBSITE AND APPLY ONLINE NOW
CLICK HERE - FOR SBA CORONAVIRUS (COVID-19) DISASTER APPLICATION DETAILS AND OVERVIEW AND APPLICATION INSTRUCTIONS
Please once again distribute this information to all your contacts inside your organization and out so that those businesses being impacted impacted by COVID-19 may benefit from these loans.
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For more information on this or our SBA-504 Program contact:
Randy Griffin, President (rgriffin@csrardc.org) - 706-210-2010
Cody Shepherd, Loan Officer (cshepherd@csrardc.org) - 762-333-8045
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CSRA BUSINESS LENDING
Georgia Office (HEADQUARTERS)- 3626 Walton Way Extension, Suite 300, Augusta, Georgia 30909
South Carolina Office (Appointments Only) - 1237 Gasden Street, Suite 200C, Columbia, South Carolina 29201
www.csrabusinesslending.com
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March 20, 2020 – The Treasury Secretary has announced Federal returns do not have to file extensions even until July 15th.
Stay tuned for formal Treasury Department notice. See March 18th notice information below.
March 18, 2020 - The Treasury Department released the following notice - https://www.irs.gov/pub/irs-drop/n-20-17.pdf
The following information was included therein – “No extension is provided in this notice for the payment or deposit of any other type of Federal tax, or for the filing of any tax return or information return. As a result of the postponement of the due date for making Federal income tax payments up to the Applicable Postponed Payment Amount from April 15, 2020, to July 15, 2020, the period beginning on April 15, 2020, and ending on July 15, 2020, will be disregarded in the calculation of any interest, penalty, or addition to tax for failure to pay the Federal income taxes postponed by this notice.
Interest, penalties, and additions to tax with respect to such postponed Federal income tax payments will begin to accrue on July 16, 2020. In addition, interest, penalties and additions to tax will accrue, without any suspension or deferral, on the amount of any Federal income tax payments in excess of the Applicable Postponed Payment Amount due but not paid by an Affected Taxpayer on April 15, 2020.
Affected Taxpayers subject to penalties or additions to tax despite the relief granted by this section III may seek reasonable cause relief under section 6651 for a failure to pay tax or seek a waiver to a penalty under section 6654 for a failure by an individual or certain trusts and estates to pay estimated income tax, as applicable. Similar relief with respect to estimated tax payments is not available for corporate taxpayers or tax-exempt organizations under section 6655.”
March 18, 2020 - News Release from Georgia Department of Labor:
The Georgia Department of Labor (GDOL) has adopted an emergency Rule 300-2-4-0.5 Partial Claims, effective March 16, 2020. The rule mandates all Georgia employers to file partial claims online on behalf of their employees for any week during which an employee (full-time/part-time) works less than full-time due to a partial or total company shutdown caused by the COVID-19 public health emergency. Any employer found to be in violation of this rule will be required to reimburse GDOL for the full amount of unemployment insurance benefits paid to the employee. Download the How Employers File Partial Claims Desk-Aid found on the GDOL Alert Page and follow the step-by-step instructions.
Filing partial claims results in your employees receiving unemployment insurance (UI) benefit payments faster, usually within 48 hours for claims filed electronically. Employees for whom you file a partial claim are NOT required to report to a Georgia Department of Labor career center, register for employment services, or look for other work.
Please continue to monitor our website at gdol.ga.gov for any updates to these guidelines.
