CARES Act and SBA Program

CARES Act

We have intentionally avoided disseminating information about the relief bill, known as the CARES Act, until it was in its final form. As of Friday March 27th, both the Senate and the House have approved the bill, and President Trump has signed it into law. As such, we can now begin to provide reliable information.

Individuals
The bill contains provisions that will provide relief to qualifying individuals in the form of recovery rebates ranging from $1,200 for individuals to $2,400 for couples, and with an additional $500 rebate for each qualifying child. In addition, there are relaxed rules for retirement plan withdrawals and loans, expanded unemployment benefits, and an “above the line” charitable contribution deduction of up to $300 in qualified charitable contributions. And, the law provides for a penalty free deferral of quarterly estimated taxes until October 15, 2020 for the first through third quarter estimated tax payments. This is in addition to the relief already announced by Secretary of the Treasury Mnuchin last week, allowing payment of taxes due on April 15, 2020 to be deferred to July 15, 2020 without penalty or interest.

Businesses
Relief for businesses will take the form of credits against payroll taxes in certain instances, deferral of payroll tax deposits and estimated tax payments without interest, and a temporary restoration of the net operating loss carryback. In addition, there are Act provisions that loosen some of the restrictions on the deduction for business interest.

One of the biggest provisions of the Act, is a broad SBA loan expansion that will allow many businesses to obtain SBA loans to fund operations, including a provision that will allow some of that borrowing to be forgiven if certain requirements are met. There are many details to come as the regulations to implement the Act are fully developed. We expect to release a separate communication devoted solely to the SBA program very soon.

Over the next few days, we will continue to provide detailed information about the law in its final form.

Even during these challenging times, we look forward to continuing to provide you and your business the client service you have come to expect and deserve from Manley Garvin. At this time, our lobby does remain closed to the public, but our associates are continuing to work remotely to serve you. We thank you for your patience and wish you all good health and safety during these unsettled times. Please do not hesitate to contact us if you have any questions or concerns.

Tax Deadline Extension and COVID-19

Treasury Secretary Steven Mnuchin announced today that the April 15th tax filing deadline for Federal returns has been pushed back to July 15th. We are awaiting announcements from state governments that they are following suit.

While our lobby is closed to the public at this time, our staff are continuing to work (most remotely from home). We encourage you to reach out to us with any questions via email or by calling 864-229-4951.

If you are a client that has already gotten your tax information to us, please know that we are working diligently on getting your return(s) to you.

If you are a client that has not yet given us your tax information for 2019, we encourage you to do so as soon as it is practical.

We do not have any indications at this time that there has been a delay in the processing of refunds at either the Federal or state levels, so if you anticipate a refund we encourage you to file as soon as possible.

If you anticipate that you will owe a balance due with your return(s), you have the option of filing as soon as you can and waiting until the extended deadline to pay.

We understand that there is uncertainty regarding the stimulus checks that were announced earlier this week. While we do not yet have definitive guidance on the impact that your tax returns may have on how these checks are calculated, we will continue to monitor this and hope to be able to better answer your questions soon.

Even during these challenging weeks, we look forward to continuing to provide you and your business the client service you deserve. We thank you for your patience in any delay in response or turnaround times.

Tax Cuts and Jobs Act (TCJA) overview

Many of our clients have asked about the recently enacted Tax Cuts and Jobs Act (TCJA) tax package. The links below will direct you to letters that give an overview of some important elements of the new law.

Click here for more information on the impact to Individual clients.

Click here for more information on the impact to Business Clients.

New Filing Process for SC Form PT-100

If you file a South Carolina Business Personal Property Tax Return (Form PT-100), the filing process has changed as of August 2016. If you haven’t already, you will receive a letter from the SCDOR with important account information. You will need to provide this letter to your accountant as the letter contains a new file […]

Due Dates for Partnership and C Corporation Returns Revised

P.L. 114-41 was Signed Into Law on July 31, 2015

On July 31, 2015, President Obama signed into law P.L. 114-41, the “Surface Transportation and Veterans Health Care Choice Improvement Act of 2015.” This new law includes a number of important tax provisions, including revised due dates for Partnership and C corporation returns. This post provides an overview of these provisions, which may have an impact on you, your family, or your business.

Revised Due Dates for Partnership and C Corporation Returns

Under the new law, in a major restructuring of entity return due dates, effective generally for returns for tax years beginning after December 31, 2015:

  • Partnerships and S corporations will have to file their returns by the 15th day of the third month after the end of the tax year. Thus, entities using a calendar year will have to file by March 15 of the following year. In other words, the filing deadline for partnerships will be accelerated by one month; the filing deadline for S corporations stays the same. By having most partnership returns due one month before individual returns are due, taxpayers and practitioners will have more time to prepare the returns of individuals who are partners in partnerships.
  • C corporations will have to file by the 15th day of the fourth month after the end of the tax year. Thus, C corporations using a calendar year will have to file by April 15 of the following year. In other words, the filing deadline for C corporations will be deferred for one month.

Keep in mind that these important changes to the filing deadlines will go into effect in 2017 when the 2016 returns have to be filed.

We hope this information is helpful. If you would like more details about these changes or any other aspect of the new law, please do not hesitate to contact us.