A message to our clients about COVID-19
March 17, 2020 [updated June 1, 2020]
As we continue to monitor the impact of coronavirus (COVID-19) carefully, our hearts and prayers continue to go out to all those directly affected. We will continue to adjust our business operations and policies as needed.
As you all know, governments have been taking many precautionary measures to the rapidly changing COVID-19 pandemic. We understand these temporary actions impact many of our employees and clients. We want to ensure our clients that Tidwell Group has been long prepared for challenges such as these, and are proud to say you can expect uninterrupted services.
Tidwell Group’s network leverages a mix of both public and private cloud infrastructure while ensuring that all of our data is encrypted from end-to-end. This strategy has allowed our professionals to work efficiently and securely from anywhere, and you will continue to receive the same responsive and professional service that you have come to expect.
Once again, we want to assure you that Tidwell Group has the utmost safety of its clients and employees in mind as we navigate these difficult circumstances. If you have any concerns that you would like to discuss, please contact us directly.
J. Barry Tidwell, CPA, CVA
– National Managing Partner
We at Tidwell Group are continuing to monitor the impact of coronavirus (COVID-19) on our clients and analyzing daily information coming from Federal, State, and Local governments. In order to keep our clients informed of the constantly changing tax environment, Tidwell Group is providing our clients with a list of frequently asked questions and answers. This document will be updated as new verified information becomes available.
Q1: What do taxpayers need to know about the COVID-19 pandemic and the impact it is having on the upcoming tax filing and payment deadlines?
A1: In response to the COVID-19 pandemic the Department of Treasury, Internal Revenue Service has issued IRS Notices 2020-17 and 2020-18. These notices directly address the upcoming tax filing and payment deadlines.
Q2: Where can I find IRS Notices 2020-17 and 2020-18?
A2: IRS Notices can be found on the IRS website. Specifically, the IRS has created a page dedicated to information on COVID-19’s impact on the tax filing and payment due dates. The web address is https://www.irs.gov/coronavirus
Q3: What is the new date to pay our taxes this year?
A3: The Department of the Treasury and the Internal Revenue Service issued IRS Notice 2020-17 on March 18, 2020. IRS Notice 2020-17 provides relief for taxpayers that have a Federal income tax payment due April 15, 2020. The relief comes in the form of an automatic extension of time to pay the tax due without incurring any interest or penalties until July 15, 2020.
Q4: Is the extended payment date only for income tax due on your return?
A4: No, the relief extends not only to Federal income tax due on your return but also to self-employment tax and 1st quarter 2020 estimated federal income tax.
Q5: Are 2nd quarter estimated tax payments extended to July 15, 2020?
A5: No, the IRS has said the due date still remains June 15, 2020, for second-quarter estimates.
Q6: Is there a maximum limit on the number of tax payments we can defer until July 15, 2020?
A6: IRS Notice 2020-18 superseded Notice 2020-17 when it was released on March 20, 2020. While the extension of time to pay federal income and self-employment tax remains July 15, 2020, the notice removed the requirement that the tax due must be under $1M. Notice 2020-18 specifically states that “…there is no limitation on the amount of the payment that may be postponed…” until July 15, 2020.
Q7: Has the deadline to file your tax return been extended?
A7: IRS Notice 2020-18 also provides the taxpayer with an automatic extension of time to file their 1040 to July 15, 2020. The requirement to file Form 4868 by April 15, 2020, has been waived. (Please see the IRS FAQ Q3 for a list of tax forms numbers that have received the automatic extension. If you have questions, please contact your Tidwell Group representative)
Q8: If I need additional time to file my taxes after July 15, 2020, can I still file an extension until October 15, 2020?
A8: Yes. The IRS has indicated that taxpayers who can’t file by the July 15 deadline may request an extension to October 15 by filing Form 4868 or Form 7004 whichever is applicable.
Q9: Is it true that the government has passed a paid emergency leave?
A9: Yes, if you are considered a “qualified worker” you could be eligible for between two and 12 weeks of paid emergency leave (depending on your particular situation) if you or your family has been impacted by COVID-19.
Q10: Has the Department of Housing addressed potential eviction issues during this challenging time?
A10: Yes, the Department of Housing and Urban Development has placed a moratorium on evictions through May 16, 2020. This moratorium on evictions applies to Home Equity Conversion Mortgage borrowers and single-family mortgage borrowers.
Q11: Has the IRS addressed high-deductible health plans and the challenges faced by these accounts?
A11: The IRS issued Notice 2020-15 which expands the definition of preventive care. This expansion of the definition of preventive care will potentially allow individuals to receive COVID-19 related testing and treatment without losing the opportunity to contribute to their HSA.
Q12: What other information do I need to know from a State or Local government level?
A12: As a result of the quickly changing environment and the complexities in monitoring all State and Local government tax changes, please contact your Tidwell Group representative with your specific questions.
We appreciate our clients and are working diligently to keep them up to date with accurate information in this challenging time. Stay safe and please contact your Tidwell Group representative directly with any questions or concerns.