News and Analysis
The federal government’s “phase three” COVID-19 emergency aid package — known as the CARES Act — included $2.2 trillion in economic relief for individuals and businesses affected by the pandemic. It includes the Paycheck Protection Program for small businesses.
Here is valuable insight on the CARES Act from selected OMA Connections Partners:
- Clark Schaefer Hackett’s summary of the CARES Act.
- RSM’s summary of CARES Act’s loans for businesses.
- Benesch’s summary of business tax provisions in the CARES Act.
- GBQ Partners’ summary of the CARES Act.
- Frantz Ward’s summary of the CARES Act.
Also, here are summaries of the “phase two” legislation — the Families First Coronavirus Response Act (FFCRA) — which included provisions on paid sick leave and expanded unemployment benefits. 4/1/2020
Today, April 3, at 11:30 a.m. (EDT), OMA Connections Partner GBQ Partners will host a free webinar on the tax provisions in the federal CARES Act — Washington, D.C.’s “phase three” response to the COVID-19 pandemic. Topics to be discussed include employee retention credit and employer payroll tax payments, as well a net operating loss provisions and excess business loss limitations. Register here. 4/3/2020
OMA Connections Partner RSM has shared this insight, which examines the short-term and intermediate effects that state and local taxation could have on manufacturers during the COVID-19 outbreak. 4/2/2020
OMA Connections Partner Clark Schaefer Hackett is offering an on-demand webinar that covers the fast-changing legislative response to the coronavirus. Topics include the federal Families First Act and the CARES Act, liquidity and financial assistance, and state and federal tax filing updates. Watch at your convenience. 4/1/2020
The IRS has posted filing and payment deadline questions and answers to address the new July 15 federal filing and payment extension. The IRS also has created this page to provide updates on mission-critical functions of the IRS. It includes an overview of changes related to IRS operations and guidance for taxpayers during this period. 3/25/2020
Late last week, the IRS and U.S. Department of Labor announced that employers subject to the Families First Coronavirus Response Act (FFCRA) will be eligible for two new refundable payroll tax credits that will “immediately and fully reimburse them” for complying with its paid leave mandate. Analysis by HR Dive says the credits are designed to grant 100% reimbursement for paid leave pursuant to the FFCRA, and that health insurance costs are included in the credit. Read the article. 3/25/2020
The U.S. Treasury Department has pushed back the April 15, 2020 tax payment deadline by 90 days. Specifically, individuals can defer tax payments of up to $1 million for 90 days, while corporations can defer up to $10 million of tax payments for 90 days. However, there is no extension for the April 15 filing deadline. See this summary from OMA Connections Partner GBQ Partners, as well as this guidance from CliftonLarsonAllen.
Also, the IRS has published this site for coronavirus-related tax guidance. 3/19/2020
On Thursday, Lt. Gov. Jon Husted announced that the U.S. Small Business Administration (SBA) has qualified Ohio for the Economic Injury Disaster Loan program. As a result, Ohio businesses that have been economically impacted by the COVID-19 outbreak may now apply for a low-interest loan of up to $2 million to help pay for fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact.
Businesses can apply for the loan online, which is recommended, or by calling (800) 659-2955 to have an application mailed. To expedite the application process, applicants should have copies of their most recent federal income tax return and a completed and signed IRS Form 4506T, which authorizes the release of tax information. Also have handy a schedule of liabilities, personal financial statement, monthly sales figures, a current year-to-date profit-and-loss statement, and a year-end profit-and-loss statement and balance sheet for that tax year — if the most recent federal income tax return has not been filed.
Here’s guidance from OMA Connections Partner Roetzel. 3/19/2020
OMA Connections Partner Huntington National Bank has announced it will offer payment deferrals of up to 90 days for consumers and small businesses facing pandemic-related financial problems. Such deferrals will not lead to any negative credit report impacts. The bank is also working directly with governors’ offices to facilitate a disaster declaration from the SBA for businesses to be eligible for federal Economic Injury Disaster Program loans. 3/18/2020
Ohio’s combined state and local income tax collections per capita are 16th highest in the nation, according to a revised report from the Tax Foundation. As of FY 2017 (the latest year available), state and local income taxes in Ohio were $1,207 per person, not much more than the U.S. average of $1,198. However, collections varied widely from state to state, ranging from $2,877 per person in New York to zero or nearly zero in nine states. 3/10/2020