Corona Tax & Finance

CORONA TAX & FINANCE

with Certified Public Accountant Brad Clements

UPDATED: 4.26.20

By Scott Berson

It’s an anxious time and still very important for us to be looking at our finances. As the COVID-19 pandemic blazes through our economy, businesses that have been forced to lay off employees and shutter their doors are starting the first phase of reopening. We still 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 their 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 Revenue Service offices are currently closed for in-person visits but are available by phone and online, although take note that you can expect extended wait times if you choose to call.”

New Date to File for Businesses is July 15

I’ve heard about the government sending people checks. What’s going on with that?

The stimulus checks are being sent out now. For single people making less than $75,000, they can expect $1,200. For married taxpayers that file jointly that collectively made less than $150,000, their stimulus check should be $2,400. There is also $500 per child under 17. If you have not received yours yet, don't worry. There could be several reasons as to why. The most common is that the 2018 return did not include direct deposit information. “If you haven't received your check, and you're eligible, I would suggest filing your 2019 return as soon as possible and including your checking account information with that filing,” Clements said. The IRS has online tools to check the status of your stimulus payment at www.irs.gov.

WHAT SHOULD SMALL BUSINESSES DO?

The two most popular loan programs have been the Economic Injury Disaster Loan Program (EIDL) and the Payroll Protection Program (PPP). The first round of PPP money ran out in less than two weeks. The additional funding is expected to open up at 10:30 a.m. on Monday, April 27. That does NOT mean that loan funds will start being distributed at that time, it means that the SBA will begin approving loans and allocating funds to approved loans. The EIDL also ran out of appropriated funds, but it's been refunded through the most recent bill and should have funds available for application again very soon. ”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.

The Pandemic Unemployment Assistance (PUA) program has expanded benefits to cover many of those that were initially denied benefits.

What’s the latest on unemployment benefits?

Recent legislation has introduced some new concepts and also expanded the state unemployment programs to include workers that would historically have been denied benefits. If employees have had hours cut, or been furloughed due to COVID-19, they can place their employees on “partial unemployment”. Self-employed people are eligible for unemployment benefits for the first time. The maximum amount of unemployment benefits per week has been raised in each state as well. If you, or your employer, has applied for benefits and you’ve been denied, be sure to check out http://dol.georgia.gov/pua. The Pandemic Unemployment Assistance (PUA) program has expanded benefits to cover many of those that were initially denied benefits.

Do you have any ideas for best use of the stimulus payment?

“There are so many unknowns. I would save it for now (if possible) pay your most important bills if not. Definitely use it to keep your power on if you’re in those types of dire circumstances.”

Any advice cost/benefit of opening the business? Is there a risk of negative publicity for a business if they reopen and someone gets sick?

“It’s an individual decision as to the social and the financial factors that play into that decision. I have clients going both ways. The only thing I will say is that the form in which the governor has allowed people to open forces the process of examining the cost of operations on a limited basis and an individual determination of whether it is economically feasible to open back up,” Clements said. “I know people that are opening up because, psychologically, of the need to feel some sense of normalcy. This is so much more than a financial decision. It’s an emotional decision and one that I don’t think anyone is taking lightly. I saw a post on Facebook that paraphrased the Mother Teresa famous quote. It said, ‘some people will choose to open and some will choose to remain closed, be kind anyway.’ If we truly are in this “together” we can’t keep finger pointing and telling the other side why they are wrong. We don’t know each other’s battles or struggles.”

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.”