I sincerely hope you and your family are remaining healthy and safe despite the coronavirus’s continued spread.
The “new normal” — homeschooling your children, working from a laptop in the corner of your family room + only venturing out for a jog or quick trip the grocery store — is a BIG adjustment. But hopefully, you’re settling into a rhythm.
In the meantime, as I predicted, the flood of new information surrounding the coronavirus crisis is coming fast and furious. And I’ve collected more details on the latest financial news, aid packages, and government resources…
Income Tax Filing Date Extension
The IRS announced an extension on this year’s tax filing date. For individual taxpayers (earning less than $1 million) and corporations (reporting less than $10 million in annual income) the filing date is now set for July 15th.
On a related note, the 2nd quarter filing date (applicable to those who file quarterly taxes) is still set for June 15th. It doesn’t quite make sense that the quarterly filing date for this year would arrive BEFORE the annual filing date for the prior year. But as I’ve already mentioned, the situation is constantly evolving, and I fully expect additional changes.
If you need an extension on filing your taxes, you have until July 15th to file an extension request. And this grants you an extension until October 15th.
The California State Franchise Tax Board also announced a delayed payment and filling date. The deadline for most individuals and corporations filing taxes in California is now set for July 15th.
To keep abreast of these changes as they’re reported, I recommend checking the IRS coronavirus tax update website regularly.
IRA + Retirement Plan Contribution Extention
You also now have until July 15th to make annual contributions to your IRA(s), employer retirement plan, health savings accounts, and Archer medical savings accounts.
City of Los Angeles Small Business Emergency Micro-loan Program
Businesses based in the city of Los Angeles that provide low-income jobs are eligible for emergency micro-loans, with loan amounts ranging from $5,000 to $20,000.
If repaid in less than a year, these loans are available at a 0% interest rate. And if repaid within five years, interest rates range from 3% to 5%.
To qualify for a micro-loan, you must…
- Demonstrate a “reasonable and responsible” personal credit history
- Certify the loaned funds will be used strictly for working capital
- Prove your business is located within the City of Los Angeles
- Guarantee the loan if you own 20% (or more) of your business
To apply for a micro-loan, complete the online application and submit supporting documentation, which includes business and personal tax returns, three months of bank statements, and business and personal financial statements.
Facebook Small Business Grants Program
Facebook is offering roughly 30,000 small businesses $100 million in both monetary grants and Facebook advertising credits.
Visit Facebook’s small business grants program website to complete an online application.
Stay Tuned for Additional Updates!
As I noted in last week’s email, this situation is evolving quickly. New information is released constantly. And I’m doing my best to stay abreast of new developments. That said, if you have tax questions related to the growing crisis, please get in touch with me…
I’m here to help YOU!