Archive for Covid-19 Updates

2020 Social Security Tax Deferral Payments Due December 31st

By David Neuman, JD    The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, enacted in response to the COVID-19 pandemic, allowed employers to defer the payment and deposit of the employer’s share of Social Security tax.   Employers were able to take advantage of the deferral by…

IRS Provides Penalty Relief for Certain Late Filed Returns

By David Neuman, JD    The Internal Revenue Service (“IRS”) has provided penalty relief in Notice 2022-36 for certain taxpayers from failure to file penalties and certain international information return penalties with respect to tax returns for the taxable years 2019 and 2020. In order to be eligible…

NYS launches COVID-19 Capital Costs Tax Credit Program

By David Neuman, JD and Alan Wong, CPA   New York State has opened a “screening tool” for small businesses to determine if they qualify for the COVID-19 Capital Costs Tax Credit Program. This $250 million tax-credit program, which is being issued on a first come first serve…

New York State Pandemic Unemployment Assistance

In March of 2020, the federal government created the Pandemic Unemployment Assistance (“PUA”), a program that provided support for Americans who were unable to work due to the Coronavirus pandemic but did not qualify for traditional Unemployment Insurance (“UI”). Individuals who received PUA benefits on, or after December…

The Complex Rules Behind the ERC

The COVID-19 pandemic created unprecedented problems for businesses that were required to shut down or limit operations. The government responded by enacting the Coronavirus Aid, Relief, and Economic Security Act, which created the Employee Retention Credit. This program is intended to help businesses retain their employees during the…

Pandemic Leads to State Border Tax Complications

Do you run a company with an at-home workforce, leaving you with employees now working in another state? Are you such an employee yourself? You may be facing some tax confusion.   Having some basic understanding of what happens will help businesses make the right decisions about classifying…

A Sales-Tax Primer for Pandemic-Affected Businesses

COVID-19 has triggered many brick-and-mortar entities to to either strengthen or create their online presence. This, in turn, has forced them to address sales tax complexities they didn’t have to contend with when all sales were local. Understanding sales tax thresholds   The internet sales tax requirement is…

SBA Enhances COVID Economic Injury Disaster Loan Program

The U.S. Small Business Administration (“SBA”) has announced new enhancements to the COVID Economic Injury Disaster Loan (“EIDL”) program, a federal disaster relief loan designed to better serve and support small businesses still reeling from the pandemic, especially hard-hit sectors such as restaurants, gyms, and hotels. The COVID EIDL…

SBA Increases Maximum EIDL to $500,000 and Extends First Payment Date

The Small Business Administration (“SBA”) is increasing the maximum amount small businesses and nonprofits can borrow through its COVID-19 Economic Injury Disaster Loan (“EIDL”) program.  Starting the week of April 6, the SBA is raising the loan limit for the COVID-19 EIDL program from six months of economic…

IRS Announces Extension of Filing Deadline to May 17

The Internal Revenue Service (“IRS”) announced Wednesday evening that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. Individual taxpayers can also postpone federal income tax payments for the 2020 tax year…