US Senate Passes Bill to Help Individuals and Businesses
Last night, the US Senate passed a huge bill to help those in economic distress both individually and for businesses. Following are some highlights. Click here for the full article:
• Based upon income levels checks will be mailed to individuals in the next few weeks based upon their 2018 filed tax returns. There are income phase outs as shown on the attached article.
• The filing deadlines have been extended to July 15th. This now dovetails with the due dates of payments as previously discussed. On a similar note both Connecticut and New Jersey have announced they will follow Federal guidelines, as have many other states. As of the writing of this New York has still not decided. However, we believe it will do so.
• If you were also concerned about estimated tax payments for 2020; any payment is now extended until October 15th, 2020. This applies to both individuals and Corporations.
• New rules have been put in place regarding distributions from qualified retirement plans. More on this in the attached article.
• For those businesses with payroll there is now a delay in required payments of the employer portion of Social Security tax.
• There are also new modifications for the use of Net Operating Losses.
Separately NYS Governor Cuomo announced a moratorium for 90 days on the payment of mortgages. We are currently gathering the facts around this and will report on this as soon as possible.
There are additional more specific provisions which you can view on the attached. If you have any questions as to how these provisions will affect you, please let us know. In the coming weeks we will be working on reviewing our clients specific situations as amended returns may be warranted since some of these provisions have prior year effect. Even though the deadlines have been extended we are still preparing tax returns as refunds will be processed quickly.