CORONA
TAX & FINANCE By Scott Berson
the program provides capital loans of as much as $2 million to impacted businesses, according to the federal government. “As far as the next few weeks go, definitely go the SBA route. I would also get in touch with your banker to ask what each individual bank is doing, because banks are going to be offering different levels of assistance, whether that’s short term loan funds, or deferment of
t’s an anxious time and still very important for us to be Iblazes looking at our finances. As the COVID-19 pandemic through our economy, businesses are being forced
to lay off employees and shutter their doors indefinitely. We may not know all the answers for quite some time, but we can do what we can with the resources we have right now. With the help of local Certified Public Accountant Brad Clements (owner at Cedar Hill CPA & Advisors), we tracked down as much information as we could about what small business owners and individuals can do to navigate the tax and financial situation in this confusing time. WHEN ARE TAXES DUE? “Anybody that was supposed to file taxes by April 15, that has been pushed to July 15,” Clements said. Internal
due
July 15 Revenue Service offices are currently closed for in-person visits but are available by phone and online. I’ve heard about the government sending people checks. What’s going on with that? As of this writing, it’s unclear. “Until they actually pass the final bill, we don’t know,” Clements said. “The initial proposal was $1000 for individuals, plus $500 for each qualified child. There’s a lot of speculation as to what that income level will be. But until the final version passes, it really is speculation.” WHAT SHOULD SMALL BUSINESSES DO? Clements said to take advantage of programs from the
Small Business Administration, such as the Economic Injury Disaster Loan Program. With little to nothing interest rates LocaL
loan payments,” Clements said. Recent legislation also offers tax credits for employers who keep employees on payroll, at least for the first 10 days. Other legislation may expand unemployment benefits and provide extra tax credits to employers for sick leave, though the details were still being worked out at writing. Self-employed individuals may be eligible for many of those same benefits, depending on their individual tax situation, according to a Marketwatch report. “”What I would recommend doing is, as quickly as you can, go ahead and at least get a general idea of what your tax picture looks like, even if it’s a balance due. If nothing else it will help you with cash flow planning,” Clements said. WHAT ELSE SHOULD I KNOW? Public student loan interest accrual has been temporarily paused, and some states like New York are ordering banks to halt collection mortgage payments temporarily, which is something to keep an eye on. The HUD has also suspended evictions and foreclosures for those in public assistance. Fannie Mae and Freddie Mac have also suspended foreclosures for at least 60 days. Above all, the Consumer Financial Protection Bureau recommends contacting all your creditors and explaining how your situation has been impacted by the pandemic.
It is likely they will work with you in some way to provide assistance through lower payments, deferments, or other help. Clements said to stay safe above all, and to support small businesses as much as you can as an individual and that it is okay to keep your money in the bank. He also stressed keeping updated, as things are moving quickly. “Follow the Small Business Administration and IRS on social media,” Clements said. Whether it’s Twitter, Instagram, follow them because there’s a lot of information getting put out on social media. It can get out there quicker than a regular press release.”u 19
APR I L 2020
