Deferring Tax Payments – 2020

Resources for Families and Business Owners 

In trying times like these, we hope many are turning to unforeseen disruptions of the COVID pandemic into opportunities to care for their teams, families, and communities while still advancing their businesses.

In an effort to offer some guidance, good news and valuable resources, Jeanine Hemingway CPA, and her team have curated a list of resources below to get you answers. For our business clients, these resources are aimed to help your company during an economic slowdown.  We are so grateful for all of our clients and employees.

• Guidance & debt vehicles by the US Small Business Administration
• OSHA requirements for employers
• Families First Coronavirus Response Act – Implications for sick leave and FMLA from the Education & Labor Committee
• Applying for SBA Disaster Assistance Loans
• Information on preventing layoffs by cutting employee hours or furloughing workers, shared work programs.
• Texas Workforce Commission FAQ’s and guidance for businesses & employers impacted during Covid19
• Texas Workforce Commission guidance & resources for employees impacted during Covid 19
• Follow the Centers for Disease Control and Prevention guidelines on social distancing, cleaning and disinfecting frequently and providing teleworking options when available.
• Information about managing multiple layoffs

Employers To Use Payroll Tax Credits for Paid Leave 

Small and midsized employers can start taking advantage of two new refundable payroll tax credits aimed at immediately reimbursing them, dollar for dollar, for the cost of providing coronavirus-related leave to their employees.

U.S. businesses with fewer than 500 employees can use the funds to provide employees with paid leave, either for the employee’s own health care needs or to care for their family members. Eligible employers will be able to claim these credits based on qualifying leave they provide between the effective date and Dec. 31, 2020. Equivalent credits are available to self-employed individuals based on similar circumstances. More Q&A HERE–>

IRS Guidance on Deferring Tax Payments
New Tax Day July 15th

Existing Installment Agreements –For taxpayers under an existing Installment Agreement, payments due between April 1 and July 15, 2020 are suspended. Taxpayers who are currently unable to comply with the terms of an Installment Payment Agreement, including a Direct Deposit Installment Agreement, may suspend payments during this period if they prefer. Furthermore, the IRS will not default any Installment Agreements during this period. By law, interest will continue to accrue on any unpaid balances.

New Installment Agreements – The IRS reminds people unable to fully pay their federal taxes that they can resolve outstanding liabilities by entering into a monthly payment agreement with the IRS. See IRS.gov for further information.

Offers in Compromise (OIC) – The IRS is taking several steps to assist taxpayers in various stages of the OIC process:

• Pending OIC applications – The IRS will allow taxpayers until July 15 to provide requested additional information to support a pending OIC. In addition, the IRS will not close any pending OIC request before July 15, 2020, without the taxpayer’s consent.
• OIC Payments – Taxpayers have the option of suspending all payments on accepted OICs until July 15, 2020, although by law interest will continue to accrue on any unpaid balances.
• Delinquent Return Filings – The IRS will not default an OIC for those taxpayers who are delinquent in filing their tax return for tax year 2018. However, taxpayers should file any delinquent 2018 return (and their 2019 return) on or before July 15, 2020.
• New OIC Applications – The IRS reminds people facing a liability exceeding their net worth that the OIC process is designed to resolve outstanding tax liabilities by providing a “Fresh Start.” Further information is available at IRS.gov

Non-Filers –The IRS reminds people who have not filed their return for tax years before 2019 that they should file their delinquent returns. More than 1 million households that haven’t filed tax returns during the last three years are actually owed refunds; they still have time to claim these refunds. Many should consider contacting a tax professional to consider various available options since the time to receive such refunds is limited by statute. Once delinquent returns have been filed, taxpayers with a tax liability should consider taking the opportunity to resolve any outstanding liabilities by entering into an Installment Agreement or an Offer in Compromise with the IRS to obtain a “Fresh Start.” See IRS.gov for further information.