Relief Efforts: Stimulus Payments/Loans, IRS/FTB Collections, Rent/Mortgage/Property Tax
April 2nd, 2020
We have assembled some information and links to help provide guidance on the various relief efforts available to you. Additionally, although our physical office is temporarily closed, we will continue to support you through phone and video conference appointments.
Please review the following information and call or e-mail us with ANY support questions.
Tax Day Postponed from April 15th to July 15th.
All taxpayers and businesses will automatically have additional time to file 2019 IRS and CA FTB filings and make payments without interest or penalties.
Congress has approved a one-time payment of $1200 (Single) or $2400 (married) plus $500 per child to be distributed in the weeks ahead. The payment will be based on the filing of a 2018 or 2019 tax return. It is critical that you file a 2018 or 2019 return at minimum to qualify for the payment. The payment will be direct deposited to the bank account disclosed on your filings or mailed to the address of record on the latest filing. Since the IRS is not taking calls right now, call us for advice if your address has changed. The stimulus payment will begin to phase out at $75,000 AGI single, $150,000 joint and $112,500 head of household.
Benefits for Workers impacted by COVID-19
Refer to the chart below for Support Services such as Unemployment, Disability, Sick Leave, and more.
- Disaster loans are available for businesses that need emergency funding. This link provides a useful list of resources by state:
- Disaster loans include an SBA $10000 Economic Injury Disaster Loan Advance which according to the SBA site “will not have to be repaid”. Apply on the link here.
“In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.”
The Coronavirus Aid, Relief, and Economic Security (CARES) Act includes The Paycheck Protection Program, which is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. The Paycheck Protection Program will be available through June 30, 2020. Loan payments will be deferred for 6 months. There is a funding cap, so the Treasury Department recommends applying as soon as possible.
Link to U.S Chamber of Commerce Q&A.
Apply through an approved lender such as your bank or credit union or apply online yourself. Visit www.sba.gov for a list of SBA lenders. You can apply here. Individual loan assistance isn’t yet available through FEMA, but the SBA may extend loans to individuals who do not own businesses.
Rent, Mortgage, & Property Tax Relief:
- For rent and mortgage relief tracking by state, see here.
- Relief for California
- Gov. Newsom issued an executive order halting evictions through May 31st. Payment is still due, but evictions and foreclosures for non-payment is stopped. Work with your individual bank or landlord for specific relief.
- Property Tax Relief
Tax Relief – State & Federal Collections/Agreements:
- For taxpayers under an existing Installment Agreement, payments due between April 1 and July 15, 2020 are suspended. Taxpayers who are currently unable to comply with the terms of an Installment Payment Agreement, including a Direct Deposit Installment Agreement, may suspend payments during this period if they prefer. Furthermore, the IRS will not default any Installment Agreements during this period. By law, interest will continue to accrue on any unpaid balances.
- The Independent Office of Appeals is not closing cases for failure to respond during this period.
- Collections/compliance activities remain ongoing for cases in which a statute of limitations is pending, but may be extended.
- FTB: the FTB hasn’t issued guidance on relief for payments due under installment agreements or suspension of collection actions.
- Executive Order N-25-20: “The Franchise Tax Board, the Board of Equalization, the Department of Tax and Fee Administration, and the Office of Tax Appeals [OTA] shall use their administrative powers where appropriate to provide those individuals and businesses impacted by complying with a state or local public health official’s imposition or recommendation of social distancing measures related to COVID-19 with the extensions for filing, payments, audits, billing, notices, assessments, claims for refund, and relief from subsequent penalties and interest.” In response to this March 12, 2020, executive order, OTA issued Legal Notice 2020-01, indicating that it will grant an automatic 60-calendar-day extension of the deadline for appeals that have a briefing or other deadline that falls between March 1, 2020, and May 18, 2020.
- CDTFA: Executive Order N-25-20:
- “In order to quickly provide relief from interest and penalties, the provisions of the Revenue and Taxation Code that apply to the taxes and fees administered by the Department of Tax and Fee Administration [CDTFA], requiring the filing of a statement under penalty of perjury setting forth the facts for a claim for relief, are suspended for a period of 60 days after the date of this Order for any individuals or businesses who are unable to file a timely tax return or make timely payment as a result of complying with a state or local public health official’s imposition or recommendation of social distancing measures related to COVID-19.”
- The CDTFA published a corresponding statement on its website indicating that sales tax relief may be available to taxpayers upon request. The CDTFA further indicated that it has the authority to grant return and payment extensions, to provide relief from penalties and interest, and to provide assistance related to refund claims. Taxpayers may request assistance by contacting the CDTFA in writing or via email. Requests for relief of interest and penalties must be made through the CDTFA’s online services portal.
- California Employment Development Department: Emergency and Disaster Assistance for Employers:
- “Employers statewide directly affected by the new coronavirus (COVID-19) may request up to a 60-day extension of time from the EDD to file their state payroll reports and/or deposit payroll taxes without penalty or interest. This extension may be granted under Section 1111.5 of the California Unemployment Insurance Code (CUIC). A written request for an extension must be received within 60 days from the original delinquent date of the payment or return.” (March 2020)
We have switched to working exclusively by phone or video conference with great results! Call or e-mail to review our virtual tax process and we’ll minimize your taxes remotely.
Please contact Izaira@taxplus.com or call 310.398.3231 to request a phone or video conference with one of our Enrolled Agents. Our San Diego office number is 858.279.1640.
We look forward to working remotely with you!