New Tax and Loan Legislation: Answering Your Questions
First and foremost, I hope you are all staying healthy and calm during these unprecedented times. I want to start by sincerely thanking all of our front-line workers in the medical field, logistics and delivery fields, grocery store employees, waste management workers, IT employees, and all other professions currently keeping the world moving during these times.
There is a lot of uncertainty in the world right now regarding taxes, government loans, and stimulus checks. We at Draus and Associates have been working countless hours and attending numerous webinars to understand the new legislation passed by the government. Please follow our Twitter account @DandAcpas where we will be posting information from reliable sources regarding the government changes due to COVID-19.
Small Business Administration Paycheck Protection Program
The idea behind this SBA loan from the government is to subsidize small businesses and help them keep their employees on the payroll. The goal is to help the over-flooding of state unemployment agency applications and get people back to work. There are specific requirements you need to meet to obtain these loans and for potential forgiveness of this money from the government.
CARES Act Stimulus Checks
The Department of Treasury has begun to issue the CARES Act stimulus checks as of the week of April 13th. The amount you may receive is based on either your filed 2018 or 2019 income tax return. If you are on Social Security and are not required to file an income tax return, you will still receive your stimulus check. Please go to the following website for more information regarding your CARES Act stimulus checks and any questions you may have: https://www.irs.gov/coronavirus/economic-impact-payments
New Tax Day
The IRS has changed the due date for income taxes from April 15th to July 15th for tax year 2019 (calendar year 2020), with no additional penalty or interest to be accrued in this timeframe. The easiest way to incorporate this change is to replace any due date of April 15th with July 15th. Most states (including Illinois) have also made this change.
Through these unprecedented times, laws are literally changing by the day and there is a lot of unverified news out there. Please cite a reliable source when inquiring about changes. As noted above, follow our Twitter account @DandAcpas for new law changes cited by reliable sources.
Lastly, we are here for you. If you have any questions or need help, please email us at nick@drausandassociates.com or reach out to our office at 224-985-3000.
