Dear Client:

The Federal Government of the United States passed the following legislation last week:

Corona Virus Aid, Relief and Economic Stimulus Act aka CARES ACT
Families First Corona Virus Response Act

CARES ACT

Provides several different types of loans. We are going to address two (2) of the loans below:

Loan #1:
Paycheck Protection Program (aka PPP): Provides small businesses with the funds to pay up to eight (8) weeks of payroll costs (including benefits), interest on mortgages, rent and utilities.

Administered through Banks
Apply beginning April 3, 2020 if you are a small business or sole proprietorship
Apply beginning April 10, 2020 if you are an independent contractor and/or self-employed individual
Apply through your existing SBA lender OR your bank

Please find the link to the US Department of the Treasury for overview of the program, lender information, borrower information and an application:

https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses

In response to many questions regarding the loan application and its completion, our office can provide assistance. If you would like our office to complete the application for you, then please contact Claudia Garcia at Claudia@StreitfeldAccounting.com. Our fee to complete the loan application for you is: $500.

Loan #2:
Economic Injury Disaster Loan Application (aka Emergency EIDL Grants): Includes a provision that makes it easier for a small business to apply for an amount UP TO $10,000 in working capital without having to go through a number of the requirements that are customary when applying for a conventional small business loan.

Link for eligibility and for the application for the Economic Injury Disaster Loan: https://covid19relief.sba.gov/#/

FAMILIES FIRST CORONA VIRUS RESPONSE ACT

Provides immediate relief starting April 1, 2020 to employees and employers through:

Mandatory Paid Sick Leave
Mandatory Paid Family Leave
Employer Payroll Tax Credits
Expanded Unemployment Benefits

For a detailed chart of each program available, please navigate directly to the Labor & Workforce Development Agency website: https://www.labor.ca.gov/coronavirus2019/#chart

OTHER IMPORTANT INFORMATION AFFECTING TAXPAYERS

Federal:

Filing Extensions:
The IRS has announced that the Federal Income Tax Filing due date is automatically extended from April 15, 2020 to July 15, 2020 (if you are a Fiscal Year taxpayer, then your due date has not been extended).

Payment Extensions:
A Taxpayer with a Federal Income Tax Payment due April 15, 2020, who is affected by the COVID-19 emergency is eligible to defer all income tax liabilities until July 15, 2020.

Year 2019 Federal Balance due – Extended to July 15th

Year 2020 Federal Estimated Tax Payments:

April 15th – Now due July 15th
June 15th – NO CHANGE
Sept 15th – NO CHANGE
Jan 15th – NO CHANGE

Important: If you did not make your required estimated payments in Year 2019, then you are still exposed to penalties and interest.

If you have already filed your Federal tax return and have a payment scheduled to be paid electronically that you would like to change, then please call: (888) 353-4537 to change your scheduled tax payment.

California State:

Filing Extensions:
The CA FTB has announced that the State Income Tax Filing due date is automatically extended from April 15, 2020 to July 15, 2020 (if you are a Fiscal Year taxpayer, then your due date has not been extended).

Payment Extensions:
A Taxpayer with a State Income Tax Payment due April 15, 2020, who is affected by the COVID-19 emergency is eligible to defer all income tax liabilities until July 15, 2020.

Year 2019 CA State Balance due – Extended to July 15th

Year 2020 CA State Estimated Tax Payments:

April 15th – Now due July 15th
June 15th – Now due July 15th
September 15th – NO CHANGE
January 15th – NO CHANGE

If you have already filed your California State tax return and have a payment scheduled to be paid electronically that you would like to change, then please call (916) 845-0353 to change your scheduled tax payment.

OTHER STATES’ RESPONSES TO COVID-19

https://www.caltax.com/FILES/2020/COVID19RESPONSE.PDF

CALIFORNIA UNEMPLOYMENT

The Pandemic Unemployment Assistance is a brand-new program. Please click on the link below to find out more about this assistance and California’s response to COVID-19.

https://www.edd.ca.gov/about_edd/coronavirus-2019.htm
https://www.edd.ca.gov/Unemployment/Filing_a_Claim.htm

CDTFA – SALES AND USE TAXES AND FEES

Extensions are available through May 11, 2020.

https://www.cdtfa.ca.gov/services/#Request-Relief