Below is a link to a chart being updated by the American Institute of Certified Public Accountants with regard to tax policy being implemented by individual states as it relates to the corona virus.
Thank you to all of our clients and friends for your cooperation and understanding during this difficult time for everyone. We are continuing to service our clients virtually while maintaining the safety and health of our staff and the public in general. We are sorry for any inconvenience this has caused.
Link to Governor Whitmer's executive order for the State of Michigan.
March 27, 2020 - 2 TRILLION DOLLAR STIMULUS PACKAGE SIGNED INTO LAW
The CARES Act was passed by the House today and quickly signed by the President into law. See link to right for full text of the act. Have fun.
Some of the highlights
1) Payments going out to most Americans -- those earning up to $75,000 will receive $1,200, plus an additional $500 per qualifying child (16 and under). The amount received will gradually phase out for people making more than $75,000, with support ending at $99,000. Joint filers making less than $150,000 will receive $2,400. Treasury Secretary Steve Mnuchin said on Wednesday that the money would arrive for most Americans within three weeks. You do not need taxable income to receive a check; however, IRS will be using info on tax filings to issue checks. If you have not filed 2019, they will use 2018. If you have not filed either due to not having a filing requirement due to your income level or for other reasons, you will not be issued a check until a return is filed. Simple returns can be done for free on IRS site. See button on right side of this page. This will be the quickest method for simple returns. For other filing situations, please call or email us.
2) Legislation adds 13 weeks of unemployment payments to the usual duration (normally 20 weeks in MI, expanded to 26 by Governor Whitmer), and adds an extra weekly $600 on top of the usual payments for four months. It also extends benefits for the first time to freelancers and gig workers.
3) $350 billion in federally guaranteed loans to small businesses and establish a $500 billion lending program for distressed companies. We have no details yet of how this will be rolled out or timing. Part of this loan package will be for small businesses that agree to use the loan proceeds for specific purposes and substantially maintain workforce. The loans would be available during an emergency period ending June 30, and would be 100% forgivable if conditions of loan met. No collateral or personal guarantees required.
Helpful Links Related to Covid-19
We are available to assist clients with gathering financial and tax information for potential loans and grant opportunities available from the State of Michigan and Federal. A qualified SBA lender can assist you with how to apply for small business assistance, including forgivable loans. I have links to various MI and SBA opportunities to the right. Details of the forgivable loan application process have not been released. Go to SBA.gov for additional updates.
Existing Installment 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.
March 27, 2000
Michigan has followed the Federal changes and extended the filing deadlines for Michigan returns. Returns originally due 4/15/20 are now due 7/15/20 and returns due 4/30/20 are now due 7/31/20. Extensions are not required to be filed. https://content.govdelivery.com/attachments/MIEOG/2020/03/27/file_attachments/1413344/EO%202020-26.pdf
The tax filing due extension announced eliminates the need for individuals and corporations to file extensions or make payments by April 15th. This includes first quarter estimated payments.