Essential Updates for Businesses & Individuals Affected by COVID-19

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As each new day unfolds during the current COVID-19 crisis, we are continuing to keep you updated on important information that we believe is relevant.  

 

IRS Pushes Tax Date to July 15

 

At a press conference held late Friday, Treasury Secretary Steven Mnuchin announced that the in addition to the extension on the Federal tax payment deadline, the filing deadline has also been delayed by 90 days. 

  • This postponement applies to any individuals, trusts, estates, partnerships, associations,  and companies or corporations.
  • Taxpayers do not have to file Forms 4868 or 7004 for an extension.
  • There is no limitation on the amount of the payment that may be postponed. 
  • No interest or penalty is due during the 90 day extension.  
  • Interest & penalties on postponed Federal income tax filings and payments will begin to accrue on July 16, 2020.

 

State Filings

State filing information is still being updated for all states, including New York. For further information on State filing updates, check out the AICPA's (American Institute of CPAs) State Filing Guidance Page.

 

Duty Extensions

US Customs and Border Protection is accepting requests for a 7-day duty payment extension. Interested parties should send requests (name of importer and IOR#) to Director Randy Mitchell at randy.mitchell@cbp.dhs.gov.

 

The National Customs Brokers & Forwarders Association of America (NCBFAA), an industry group serving importers and exporters, has asked Customs for a 90 day tolling or deferral period, and Customs is considering the request.

 

Guide for Common Areas of Financial Concern

 

Many lenders and financial firms are offering assistance during the COVID-19 Crisis. Below is an outline of some of the more common financial areas of concern that everyone is facing during this time. We strongly suggest you contact all of the providers directly for further details on what is available to you.

 

Mortgage Payment Deferrals

  • Reach out to your mortgage holder about delaying payments
  • Most lenders have special waivers for COVID-19
  • Lenders have certain obligations to work with you
  • Last resort: Forbearance allows deferred payments but interest does accrue

 

Updated/Additional Info on Financial Assistance Programs

 

SBA Disaster Loan

 

This is a loan program that is providing low interest federal loans for working capital for small businesses suffering economic injury due to COVID-19. Loan amounts up to $2,000,000 to be used for fixed debts, payroll, accounts payable & other bills.

 

Here is an outline of the terms available:

  • 3.75% fixed interest rate on loans to for-profit companies 
  • 2.75% fixed interest rate on loans to non-profits
  • Can be paid for a term of up to 30 years

Documents/information needed for application:

  • Contact information
  • Social Security Number
  • Insurance information

More details on this program can be found at SBA Disaster Loan

 

These programs were mentioned in our news release last week: 

 

NYC Employee Retention Grant Program

 

The purpose of this grant is to cover 40% of payroll costs for two months to help retain employees. This grant is available is for businesses and non-profits that reside in the five boroughs of NYC, with four or less employees. To qualify for this grant, the business must be established for atleast 6 months, and have no outstanding tax liens or legal judgements. The business will need to demonstrate that the COVID-19 crisis has caused at least a 25% decrease in revenue.

 

More details on this grant can be found at NYC Employee Retention Grant Program

 

NYC Small Business Continuity Fund

 

This is a loan program, offering zero interest loans of up to $75,000 to help mitigate losses in profit. This program is for businesses that reside in the five boroughs of NYC, with ninety-nine or less employees. To qualify for this program, the business must not have any outstanding tax liens or legal judgements and be able to demonstrate that they are able to repay the loan. The business will need to demonstrate that the COVID-19 crisis has caused at least a 25% decrease in revenue.

 

More details on this program can be found at NYC Small Business Services.

 

During this crisis, your LMC professional is available if you have questions related to the latest updates on this topic.   All our prior Alerts are available on the Updates page of our website. 

 

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