Possible Penalty Relief For Those Who Missed Sept. 15 Corporate Tax Deadline
If your business’s fiscal year-end is June 30 and you missed the corporate tax filing deadline on September 15, you may be able to avoid paying penalties if you missed the deadline due to COVID-19 hardships. The IRS understands that people are impacted by coronavirus, and if you are really trying to be compliant, the IRS doesn’t want to penalize you. In other words, the IRS is flexible in granting penalty relief where taxpayers can demonstrate good-faith efforts in filing their returns
Apparently you simply have to write COVID-19 at the top of your tax return. According to an AccountingToday.com article, AICPA said that the IRS has said they would recognize that as an indication of needing penalty relief. Though it is not a blanket forgiveness. Good faith effort must be seen. https://www.accountingtoday.com/news/penalty-relief-may-be-available-to-taxpayers-who-miss-sept-15-tax-deadline-due-to-covid-19
A New Payroll Tax Credit Proposed To Help Protect Employees
On another front, COVID-19 has politicians scrambling to create programs that will help fuel economic recovery. One republican Congressman from Texas, Pete Olson, has introduced The Businesses Preparing for a Better Tomorrow Act, which, if passed would provide a payroll tax credit to employers for expenses used for qualified workplace best practices training associated with protecting employees from COVID-19. According to the new bill, qualified workplace training expenses would be defined as amounts paid or incurred by the employer for education and training with respect to industry best practices and recommendations made by the Centers for Disease Control and Prevention or the Occupational Safety and Health Administration, with the primary purpose of preventing the spread of COVID-19.
Every Business Needs Help Getting Back Up And Running Safely
Hopefully there will be many more initiatives and tax relief programs proposed to help hurting businesses regain their equilibrium and manage to survive this challenge. Though, not knowing how much longer the country is going to be in partial shutdown and how long millions of taxpayers will remain unemployed, it’s difficult to know what kind of programs to initiate.
Payroll tax credit for required paid family leave
Remember also that there are other tax credits for employers subject to certain limitations. Families First Coronavirus Response Act, P.L. 116-127, which was a general relief bill, but included among its many provisions are several tax credits for employers who provide paid sick leave or family or medical leave for their employees who miss work for various coronavirus-related reasons.
In addition, the U.S. Small Business Administration is offering all states and territories low-interest federal disaster loans for working capital to small businesses and non-profit organizations of any size suffering substantial economic injury as a result of the Coronavirus (COVID-19). There may be more disaster relief available to individuals and businesses who suffered losses due to hurricanes Laura and Sally.
There may not be relief in sight yet for the end of this pandemic, so it’s important to use every possible resource to keep your business above water. The IRS is providing some relief. Hopefully, there will be new programs and incentives to help us all survive.