08 May Coronavirus Economic Relief Issues
The IRS is now sending citizens the first wave of economic impact payments, aka stimulus checks, via direct deposit and mail. With so much money in the pipeline, people have a lot of questions. How is eligibility determined? Do I need to apply to receive a payment? Does my business qualify for a PPP (paycheck protection program) loan?
Where to Find Help
For those who haven’t received an economic impact payment yet, here’s what you should know. Further answers can be found at the special section of the IRS site that’s focused on helping taxpayers, businesses, and others affected by the coronavirus. You may also read the site’s updated FAQ page for the latest information.
- Eligibility. For people who filed tax returns for 2018 and 2019, there’s nothing they need to do. If you’re required to file for those years but haven’t, you should do so right away. Low-income taxpayers, seniors, some veterans, and individuals with disabilities who typically do not file tax returns will need to apply.
- Prior liability. Individuals who owe back taxes and who otherwise qualify for the stimulus relief will not have their payment held against those prior-tax year liabilities.
- Net operating loss. The CARES Act Stimulus Package temporarily suspends TCJA disallowances and allows corporations to utilize NOL carrybacks and carry forwards for NOLs generated in 2018, 2019, and 2020.
- PPP. The CARES act also provides assistance to small businesses in the form of a paycheck protection program that enables them to hire back employees and cover payroll and other overhead expenses. These loans are also available to self-employed individuals and independent contractors. In some cases, the loans may be 100% forgiven. If they have not yet filed a 2019 tax return, borrowers must file Schedule C info to apply.
There’s also good news for Florida’s corporations. The deadline to make corporate income tax payments or request an extension was just extended from May 1 to June 1 as part of the state’s response to the pandemic. The emergency order also pushed the May, June, and July deadlines for filing returns to August 3. June 1 payments must still be paid on that date.
Awaiting a Stimulus Payment
It would appear that patience is going to be needed in some cases as problems tracking stimulus payments online and other problems with the IRS tracking tool have been reported. To learn more about the stimulus program and how it applies to your situation, contact KEGA CPAs online today or call us at 772.231.6902 to schedule a consultation.