News & Tech Tips

Trump Signs Additional Small Business Coronavirus Relief Bill

Kathleen Hargrove on April 24, 2020

President Trump has just signed a $484 billion interim coronavirus bill into law that includes additional money for the small-business loan program, as well as more funding for hospitals and testing.

The bill passed the Senate earlier this week and was approved by the House yesterday.

It includes more than $320 billion for the Paycheck Protection Program, or PPP, created by the CARES Act, which was passed late last month.

The PPP, which provides forgivable loans to small businesses that keep their employees on the payroll, had quickly run out of money due to high demand

About $60 billion of the additional PPP funding will be set aside for businesses that do not have established banking relationships, such as rural and minority-owned companies.

The bill also provides $60 billion in loans and grants for the Small Business Administration’s disaster relief fund, $75 billion for hospitals and $25 billion for coronavirus testing.

Another expansive round of coronavirus legislation is expected to be released in the coming weeks. We will continue to monitor this and keep you updated on any new information.

If you think your business is eligible for assistance and has not already received funding through this program, we are happy to help guide you through the process.

 

As always, feel free to reach out to your Whalen advisor with any questions on this new bill or anything else you may have questions about during this time.

 

IRS Issues Warning About Coronavirus-Related Scams

Kathleen Hargrove on April 3, 2020

The IRS is urging taxpayers to be on the lookout for a surge of calls and email phishing attempts about the Coronavirus, or COVID-19. These contacts can lead to tax-related fraud and identity theft.
Taxpayers should watch not only for emails but, text messages, websites and social media attempts that request money or personal information.

“History has shown that criminals take every opportunity to perpetrate a fraud on unsuspecting victims, especially when a group of people is vulnerable or in a state of need,” said IRS Criminal Investigation Chief Don Fort. “While you are waiting to hear about your economic impact payment, criminals are working hard to trick you into getting their hands on it. The IRS Criminal Investigation Division is working hard to find these scammers and shut them down, but in the meantime, we ask people to remain vigilant.”

Don’t Fall Prey to Coronavirus Tricks

The IRS and its Criminal Investigation Division have seen a wave of new and evolving phishing schemes against taxpayers. In most cases, the IRS will deposit economic impact payments into the direct deposit account taxpayers previously provided on tax returns. Those taxpayers who have previously filed but not provided direct deposit information to the IRS will be able to provide their banking information online to a newly designed secure portal on IRS.gov in mid-April. If the IRS does not have a taxpayer’s direct deposit information, a check will be mailed to the address on file. Taxpayers should not provide their direct deposit or other banking information for others to input on their behalf into the secure portal.

The IRS also reminds retirees who don’t normally have a requirement to file a tax return that no action on their part is needed to receive their $1,200 economic impact payment. Seniors should be especially careful during this period. The IRS reminds retirees – including recipients of Forms SSA-1099 and RRB-1099 −  that no one from the agency will be reaching out to them by phone, email, mail or in person asking for any kind of information to complete their economic impact payment, also sometimes referred to as rebates or stimulus payments. The IRS is sending these $1,200 payments automatically to retirees – no additional action or information is needed on their part to receive this.

The IRS reminds taxpayers that scammers may:

  • Emphasize the words “Stimulus Check” or “Stimulus Payment.” The official term is economic impact payment.
  • Ask the taxpayer to sign over their economic impact payment check to them.
  • Ask by phone, email, text or social media for verification of personal and/or banking information saying that the information is needed to receive or speed up their economic impact payment.
  • Suggest that they can get a tax refund or economic impact payment faster by working on the taxpayer’s behalf. This scam could be conducted by social media or even in person.
  • Mail the taxpayer a bogus check, perhaps in an odd amount, then tell the taxpayer to call a number or verify information online in order to cash it.
Reporting Coronavirus-Related or Other Phishing Attempts
Those who receive unsolicited emails, text messages or social media attempts to gather information that appear to be from either the IRS or an organization closely linked to the IRS, such as the Electronic Federal Tax Payment System (EFTPS), should forward it to phishing@irs.gov.

Taxpayers are encouraged not to engage potential scammers online or on the phone. Learn more about reporting suspected scams by going to the Report Phishing and Online Scams page on IRS.gov.

 
SOURCE: IRS.gov

Families First Coronavirus Response Act

Kathleen Hargrove on March 21, 2020

The Senate passed the House Coronavirus Bill (The Families First Coronavirus Response Act) on Wednesday, and it has been signed into law by the President. This is the second package from Congress dealing with the Coronavirus outbreak.
 
Congress and the Administration are now working on a third phase to further stem the impact of the outbreak on families and the economy which would include stimulus checks.
This bill responds to the coronavirus outbreak by providing paid sick leave and free coronavirus testing, expanding food assistance and unemployment benefits, and requiring employers to provide additional protections for health care workers.
It also provides FY2020 appropriations to the Department of Health and Human Services for nutrition programs that assist the elderly.
The supplemental appropriations provided by the bill are designated as emergency spending, which is exempt from discretionary spending limits.
The bill modifies USDA food assistance and nutrition programs to:
  • Allow certain waivers to requirements for the school meal programs
  • Suspend the work requirements for the Supplemental Nutrition Assistance Program (SNAP, formerly known as the food stamp program)
  • Allow states to request waivers to provide certain emergency SNAP benefits
In addition, the bill requires the Occupational Safety and Health Administration to issue an emergency temporary standard that requires certain employers to develop and implement a comprehensive infectious disease exposure control plan to protect health care workers.
The bill also includes provisions that:
  • Establish a federal emergency paid leave benefits program to provide payments to employees taking unpaid leave due to the coronavirus outbreak
  • Expand unemployment benefits and provide grants to states for processing and paying claims
  • Require employers to provide paid sick leave to employees
  • Establish requirements for providing coronavirus diagnostic testing at no cost to consumers
  • Treat personal respiratory protective devices as covered countermeasures that are eligible for certain liability protections
  • Temporarily increase the Medicaid federal medical assistance percentage (FMAP)

We are continuing to monitor these rapidly changing situations, and will keep you updated on any developments.

As always, if you have any questions about how these announcements may affect you or your business, please contact your Whalen Advisor.  We are always ready and available for you during this unprecedented time.

Tax Deadline Extended

Kathleen Hargrove on March 21, 2020

Treasury Secretary Steven Mnuchin announced Friday that President Trump has directed him to move Tax Day to July 15, giving taxpayers more time to file their taxes in the midst of the coronavirus pandemic.

 

All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.

In addition, the IRS released IR-2020-58 on Saturday which has additional updates regarding this extended due date and the payment of federal income tax returns. Highlights from the notice include:

  • Due date will automatically extend from 4/15 to 7/15  – no extension forms are needed.
  • Payment, regardless of the amount, can also be deferred until 7/15, without penalties and interest.  There is no longer a $1 million or $10 million limit. This applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax.
  • The period beginning on 4/15/20 and ending on 7/15/20 will be disregarded in the calculation of any penalty, interest or addition of tax for failure to file the federal income tax returns or pay the federal income tax postponed by the Notice.
  • Individuals who need an additional extension beyond 7/15 will need to file the proper extension form and pay the tax by 7/15.
  • Currently, this extension is only for those taxes due 4/15.  This means the second quarter estimates due 6/15 will still be be due by that date.
The IRS still urges those individuals who have refunds to file as soon as possible and to file electronically.  The IRS is continuing to accept tax returns and send refunds.
Please note that this extended due date is for federal returns only. Ohio and it’s municipalities have yet to announce extensions yet, but we will continue to keep an eye on this and notify you should this change. 

Precautions Due To Virus Concerns

Kathleen Hargrove on March 12, 2020

The World Health Organization declared Wednesday that the spread of Coronavirus is now classified as a “global pandemic.”  Here in Ohio and across the country, many cities, schools, and businesses are taking necessary steps to help further prevent the spread of this and other viruses.
One of the best ways to prevent the spread of viral illness is to minimize circumstances in which individuals may interact and transmit illness. In alignment with this, our team at Whalen & Company is putting a plan in place to ensure the safety of all of our clients, staff, and community members.
Client Precautions:
We are asking for your cooperation to please refrain from in-person meetings and in-person acceptance or returning of any documents if you are currently:
  • Showing symptoms of a virus
  • Recently been in contact with anyone showing symptoms of a virus 
  • Returning from travel to a high risk area
  • Known to have a weakened immune system or health condition
In addition, we will be halting all monthly client workshops held in our office for the foreseeable future. We will keep you updated as to when these will resume, and will of course continue sending any urgent information on pressing topics via email.
We understand that these proactive measures may cause minor inconvenience, but your assistance and collaboration with this effort will help to ensure the safety of all. 
 
Proposed Solutions:
 
If you are unable to meet in-person for any of the reasons above, we would recommend utilizing one of the options below to ensure the completion of your deliverable:
  • Detailed phone conversation
  • Email correspondence
  • Submissions via our client portal
  • Provision of completed engagements via electronic means
  • Rescheduling in-person meeting to a later date
  • Filing an extension with applicable taxing agencies
We are, of course, happy to have a discussion with you regarding your personal situation to conclude which option would be best for you.
If you have any questions or concerns about these precautions, please contact your Whalen Advisor. 
We thank you for your continued loyalty and for your understanding and assistance with this matter.
-Your Whalen Team

Whalen CPAs
250 W. Old Wilson Bridge Rd., Suite 300
Worthington, OH 43085-2215
(614) 396-4200

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