Statement Regarding COVID-19
In this time of uncertainty and change, we have been trying to keep from joining the din of messages flooding your inbox related to how the novel coronavirus-2019 could be impacting our services, so that you could focus on what really matters. However, as more changes sweep the country and our part of it, the following are a few important points we hope will help put you at ease.
First, Gilliland & Associates, P.C., values the health and safety of our clients and associates. Bearing that in mind, our office is still open for business. We will continue to monitor the COVID-19 situation, and should the facts & circumstances necessitate a change, our staff are fully capable of working remotely.
For those that prefer, we have secure methods for sending and receiving files electronically, and we are able to offer online meetings instead of visiting our office in-person.
Second, the national and local governments have been busy making changes to the annual tax deadlines. Here is where things stand now:
• All federal income tax returns and payments due on April 15, 2020 are now due by July 15, 2020. There will be no penalties or interest assessed for this period, and if you receive a notice later then you can request a waiver. However, any existing penalties (such as underpayment of estimates) will continue to run. While this postponement includes both the balances due on 2019 income tax returns and first- & second-quarter-2020 income tax estimates. Various other tax-years, types of returns, or due dates have also been deferred.
• Maryland and the District of Columbia have both matched the federal government by postponing their filing and payment deadlines by three months. Maryland has also extended other business- related filings (payroll, sales & use, etc.) for February through April until June 1, 2020. However, DC did not postpone the due dates for any of their 2020 estimates.
• Virginia has NOT changed their filing deadlines. Due to concerns over budget shortfalls, Virginia has only extended the deadline to pay balances due and first-quarter estimates by one month, to June 1, 2020. Additionally, this change does not provide extension relief, so you must still have paid at least 90% of your final 2019 liability by June 1st or be hit with extension penalties. Further, interest will still be charged for balances unpaid during the extra month.
Third, Congress has passed the Families First Coronavirus Response Act to ease the coronavirus’ monetary impact by providing paid leave for employees and payroll tax credits for employers. Additional legislation is still under consideration, and we will provide updates as more information becomes available.
Finally, small business owners can apply for economic injury disaster loans from the Small Business Administration. These have more advantageous terms than ordinary SBA loans, and provide working capital to substitute for the revenues lost during the commercial turmoil.
Please stay safe, follow official guidance from the CDC and local governments, and we will be here should you need to contact us with any questions related to your tax situation.
Please contact us if you have any questions.