COVID-19 Webinar on Friday, April 3, at 1 PM (ET) – Unpacking the Economic Stimulus Plan: Impacts on Your Dental Practice

Tarlow Invites You: COVID-19 Webinar
Unpacking the Economic Stimulus Plan: Impacts on Your Dental Practice

On Friday, April 3, 2020, at 1:00 PM to 2:00 PM (ET), our CPA channel affiliate partner, Aprio, will host a complimentary webinar to unpack the historic $2 trillion Coronavirus Aid, Relief, and Economic Security Act and what it means to dental practices and their owners.

During the webinar, you will learn about the following topics: 

  • Final interpretations of legislation and how they affect your practice
  • Leveraging SBA loan opportunities to reopen your business
  • Understanding 15-year qualified improvement property options
  • Breaking down 401k clauses and options
  • Steps you can take today to maximize your tomorrow

Speakers on the panel include: 

  • Brad Mckeiver, Partner and Dental Accounting Expert at Aprio
  • Tommy Lee, Partner-In-Charge of Retail, Franchise, and Hospitality at Aprio
  • Andrew Shaul, Dental Legal Counsel at The Shaul Law Firm, PC
  • Evelyn Horne, Dental Practice Management Expert at Evelyn Home, Inc.

Register Today

COVID-19 Webinar on April 2, 2020 at 3:00 PM (ET) – Get Your SBA Loan Questions Answered

Tarlow Invites You: COVID-19 Webinar
Get Your SBA Loan Questions Answered

On Thursday, April 2, 2020, at 3:00 PM to 4:00 PM (ET), our CPA channel affiliate partner, Aprio, will host a complimentary webinar to address your most pressing questions related to SBA loans amid the COVID-19 crisis and the steps you can take to get your refunds faster.

Panelists will discuss:

  • SBA Disaster Relief Loans vs. Payroll Protection Program vs. traditional SBA loans;
  • Eligibility for each loan type and how/if you can benefit from each;
  • How funds from each loan type can be used; and
  • How we can help you get your money faster.

Experts on the panel include:

  • Tommy Lee, Partner-In-Charge of Retail, Franchise, and Hospitality at Aprio
  • Saeed Moghadam, Partner, Aprio Strategic Partners, LLC

Register here

Join Us for a COVID-19 Webinar Series

Tarlow Invites You: COVID-19 Webinar Series

In these unprecedented times, Tarlow’s top priority is to provide clients with the business advice and guidance they need to navigate COVID-19. We invite you to the COVID-19 Webinar Series hosted by Aprio, our CPA channel affiliate partner. 

The COVID-19 Webinar Series covers important information related to the crisis and how it will affect individuals and businesses. Additional information and registration links are below. 


Unpacking the Massive Economic Stimulus Package – How You Will Benefit

Monday, March 30, 2020 at 1:00 PM – 2:30 PM (ET)

We will unpack the historic $2 trillion Coronavirus Aid, Relief, and Economic Security Act, the largest economic stimulus package in modern history and what it means to businesses and individuals.

Register

 

COVID-19 Cyber Security Fundamentals – Minimizing Risks to Your Business and Employees

Tuesday, March 31, 2020, at 9:00 AM – 10:30 AM (ET)

COVID-19 means our employees are working remotely, expanding the cyber-attack footprint, and hackers have been busy crafting ingenious COVID-19-themed lures to successfully launch cyberattacks. During our webinar, you’ll gain a greater perspective on the most significant and emerging cyber threats, and the steps you need to take to protect your business and your remote employees.

 

How New Payroll Tax Credits Can Help You Keep More Employees on the Job During COVID-19

Wednesday, April 1, 2020, at 3:00 PM – 4:00 PM (ET)

We will discuss how the recently announced coronavirus-related paid leave and payroll tax credits for businesses will enable you to subsidize employee payroll and keep more of your employees in their jobs throughout the COVID-19 crisis.

 

Get Your SBA Loan Questions Answered

Thursday, April 2, 2020, at 3:00 PM – 4:00 PM (ET)

We will address your most pressing questions related to SBA loans amid the COVID-19 crisis and the steps you can take to get your refunds faster.

Panelists will discuss:

  • SBA Disaster Relief Loans vs. Payroll Protection Program vs. traditional SBA loans;
  • Eligibility for each loan type and how/if you can benefit from each;
  • How funds from each loan type can be used; and
  • How we can help you get your money faster.

 

Unpacking the Impact of COVID-19 Legislation on Non-Profits

Tuesday, April 7, 2020, at 10:00 AM – 11:00 AM (ET) 

We will unpack the impact of the Families First Coronavirus Response Act and CARES Act on nonprofit organizations, and how these new rules offer planning opportunities for nonprofits to prepare for the upturn. 

Panelists will discuss:

  • Tax relief for nonprofit organizations and individuals;
  • SBA loan options and how to get started; and 
  • New payroll tax credits and how they can help you keep more employees on the job. 

 

Tarlow CARES Act Update

The Senate passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), to provide additional financial assistance to individual and business taxpayers due to the coronavirus pandemic. As of this writing, the House just passed the CARES Act and it is now being sent to President Trump for signature.

Amendments to the Families First Coronavirus Response Act

The CARES Act changes sections of the Families First Coronavirus Response Act (FFCRA), enacted on March 18, 2020. One update is that employers subject to the FFCRA may elect to provide even more paid leave than stated by the FFCRA.  Note, the related payroll tax credits are capped at the FFCRA’s mandatory paid leave wage amounts.

In addition, the CARES Act expands eligible employees under the paid leave provisions of the FFCRA to workers who were laid off not earlier than March 1, 2020, had worked for the employer for at least 30 of the last 60 calendar days prior to being laid off, and were rehired by the employer.

Employers subject to the FFCRA may receive an advance, including any refundable portions, of FFCRA payroll credits to help cover the expense of providing the required paid leave under the FFCRA.

CARES ACT INDIVIDUAL PROVISIONS

Recovery Checks

Individual taxpayers will receive a recovery rebate check of $1,200 per individual and $2,400 for married couples filing jointly, plus $500 for each qualifying dependent child. The recovery rebate phases out for taxpayers whose adjusted gross income exceeds $150,000 for joint returns, $112,500 for head of household, and $75,000 for all other taxpayers.

The amount a taxpayer receives is based on information from the taxpayer’s 2019 tax return; if the taxpayer has not yet filed a 2019 return, the amount is based on the 2018 tax return.

Retirement Plans

The bill liberalizes the retirement plan rules, for 2020, for premature distribution penalties, plan loans and required minimum distributions (RMDs).

The 10% premature early withdrawal penalty is waived for distributions of up to $100,000 from qualified retirement accounts and individual retirement accounts for coronavirus-related purposes. In addition, the federal income tax on such distributions can be paid over a three-year period. The law also provides that these distributions can be recontributed back to the plan within a three-year period without affecting that year’s contribution cap.

The bill provides more flexible rules concerning loans from certain retirement accounts for coronavirus-related relief. The maximum amount of loans (when combined with existing loans) which can be taken from the plan is the lesser of $100,000 (up from $50,000) or 100% of the participant’s accrued benefit (up from 50%).

Charitable Contributions Deduction Modifications

Taxpayers who do not otherwise elect to itemize deductions are allowed an above-the-line deduction in 2020 for up to $300 for charitable contributions made in cash (not stock) to any qualifying Section 501(c)(3) public charity, excluding donor-advised funds.

In addition, for individuals who itemize, the CARES Act temporarily increases limitations on deductions for charitable contributions made in 2020. For individuals, the 60 percent of adjusted gross income limitation is suspended for 2020 for cash contributions to qualifying organizations, excluding donor-advised funds. For contributions of food inventory, the limitation is increased from 15 percent to 25 percent. Excess contributions may be carried forward to future years based on the existing charitable contribution carryforward rules.

Employer Payments of Student Loans Assistance Program

Through December 31, 2020, employers may provide a student loan repayment benefit of up to $5,250 annually to employees tax-free. This extends to both new student loan repayment benefits and other educational assistance provided by an employer under current law.

Expanded Unemployment Insurance Benefits

The CARES Act provides increased unemployment insurance benefits for individuals (including those who are self-employed) who become unemployed, partially unemployed or are unable to work due to COVID-19 on or after January 27, 2020, and on or before December 31, 2020. In general, the unemployment benefit a recipient receives is increased by $600 per week. Benefits may vary by state.

CARES ACT PROVISIONS FOR SMALL BUSINESS OWNERS

The 7(a) loan program, administered by the U.S. Small Business Administration (SBA), provides financial assistance to small businesses. Overall, the CARES Act authorizes an additional $349 billion for general 7(a) business loans. For SBA Express loans, the statutory $350,000 limit is increased to $1 million through December 31, 2020.  In general, the SBA responds to Express loans within 36 hours, compared to standard 7(a) loans, which may take weeks to process.

Recipients of 7(a) loans may be eligible for loan forgiveness on covered loans in an amount equal to the sum of the costs incurred on or after February 15, 2020, and on or before June 30, 2020, due to payroll cost, mortgage interest payments, rent or utility payments.

In addition, the CARES Act gives the SBA authority to provide paycheck protection loans to help employers cover costs, including wages, paid leave and state taxes on employee wages. These benefits are available to employers with no more than 500 employees, including nonprofit organizations.

Employee Retention Credit

An eligible employer is allowed a credit against applicable employment taxes for each calendar quarter equal to 50% of qualified wages for each employee for such calendar quarter.

  • The amount of qualified wages for any employee taken into account by an employer for all calendar quarters is limited to $10,000.
  • The credit is limited to the employment taxes owed as reduced by other credits for all employees of the eligible employer for such calendar quarter.

An eligible employer is one who (a) was carrying on a trade or business during calendar year 2020; (b) with respect to any calendar quarter for which (i) operations are fully or partially suspended due to orders from an appropriate government authority limiting commerce, travel, or group meetings due to COVID-19 or (ii) in which (beginning in first calendar quarter after 12/31/2019) there has been a significant decline in gross receipts (i.e., less than 50% gross receipts for the same quarter in the prior year and ending with calendar quarter for which gross receipts are greater than 80% same calendar quarter in prior year). Tax-exempt organizations can also benefit from this credit.

Employer and Self-Employer Individual Deferral of Payroll Taxes

Employers and self-employed individuals can defer the payment of the employer portion of employment taxes or self-employment taxes due during the “payroll tax deferral period” to December 31, 2021, and December 31, 2022.  50% of the deferred taxes will be required to be paid on these dates.  Penalties will not apply for failure to make timely deposits for withholding these amounts.

The Payroll Tax Deferral Period is defined as the period beginning on date of enactment to January 1, 2021. This does not appear to be retroactive to January 1, 2020.

Net Operating Loss (NOL) Rules

Rules limiting the use of net operating losses under the Tax Cuts and Jobs Act (TCJA) are suspended under the Stimulus Bill.

  • NOLs from 2018, 2019 or 2020 are eligible to be carried back for five years.
  • Additionally, the 80% limit on use of NOL carryforwards is also temporarily removed so that the NOL can fully offset income.

Limitation of Individuals’ Use of Business Losses

Under the TCJA, non-corporate taxpayers’ net business losses were limited under IRC section 461(l) to $250,000 ($500,000 for a joint filer). The Stimulus Bill would permit use of net business losses without limit for the 2018 tax year through 2020.

Corporate Alternative Minimum Tax Credit Refund

Under the TCJA, a C corporation with alternative minimum tax credits was entitled to a refund of these credits over a four-year period — 2018, 2019, 2020 and 2021. Under the Stimulus Bill, the corporation can receive the refund over a two-year period 2018 and 2019. Furthermore, if there will be any delay in filing the 2019 C corporation return, an election can be made to include the entire refundable amount in 2018.

Business Interest Limitation Under IRC Section 163(J)

The TCJA includes a limitation on the use of net business interest expense to 30% of Adjusted Taxable Income. The Stimulus Bill amends this rule for 2019 and 2020 and increases the limit from 30% of Adjusted Taxable Income to 50%. Additionally, since it is likely that 2020 income will be lower than in 2019 due to the current economic circumstance, an election can be made to use the 2019 Adjusted Taxable Income for the 2020 tax year.

Bonus Depreciation

The Tax Cuts and Jobs Act intended to permit immediate write-off of costs related to Qualified Improvement Property. Due to a drafting error, this provision was not put into that legislation and caused QIP only to be eligible for depreciation over 39 years. The Stimulus Bill fixes this drafting error and specifically permits bonus depreciation to be taken on qualified costs retroactively. This allows amendment of 2018 and 2019 filed returns and provide a source of cash, particularly for those in the hospitality industry.

Excise Tax Exemption

The bill also provides a temporary exception from excise tax on alcohol which is used to produce hand sanitizer.  We are waiting to see if the House of Representatives made changes to these provisions. Clearly, they are all intended to provide additional cash to taxpayers.

Tarlow is Here to Help — Contact Us with Questions

At Tarlow, our Partners and staff members are closely monitoring tax-related legislation and regulations. We will continue to update you by sending communications about relevant news and changing guidelines.  If you have any questions, please contact your Tarlow advisor.

COVID-19 Update: Families First Coronavirus Response Act

As an update, President Trump signed and Congress passed the Families First Coronavirus Response Act, the first of several bills covering the Federal Government’s response to the COVID-19 emergency.  The law addresses three areas that directly impact employees and their employers. It has an effective date of no later than 15 days from its signature (April 3) and expires December 31, 2020.  The provisions apply to all Covered Employers, defined as private sector employers with fewer than 500 workers as well as to governmental agencies. Many details and unanswered questions need to be addressed as the law is implemented.

To follow is brief summary of the Families First Coronavirus Response Act:

Emergency Sick Leave

Covered Employers must provide employees who cannot work (on-site or remotely) with paid sick time off if an employee falls into one of the following categories:

  • Is subject to a Coronavirus quarantine or isolation order;
  • Has been advised by a health care provider to self-quarantine;
  • Is experiencing Coronavirus like symptoms and is seeking a diagnosis;
  • Is caring for an individual in the first two categories;
  • Is caring for a child whose school or place of care is closed or the regular child care provider is not available due to Coronavirus precautions; or
  • Is experiencing any other substantially similar conditions specified by Health and Human Services in coordination with the Treasury or Labor Departments.

Full-time employees are to receive 80 hours of sick leave and part-time employees are to receive leave equivalent to their average number of hours worked in a two-week period.  This leave must be made available for immediate use regardless of the employee’s tenure with the employer.

Workers taking leave in the first three categories (above) will have to be paid their normal wages or the applicable minimum wage, whichever is greater and is capped at $511 per day and $5,110 in total.  Workers taking time off for family reasons (the fourth through sixth categories) must receive two-thirds of their wages or minimum wage and is capped at $200 per day and $2,000 in total.

Emergency Family Leave

Covered Employers must allow up to 12 weeks of Family Medical Leave Act leave for any employee who has been with the employer for at least 30 days. This also applies if an employee is unable to work because their minor child’s school or place of care has been closed or the regular child care provider is not available due to coronavirus precautions.

The first two weeks of such leave can be unpaid, although an employee could opt to use PTO. After that time, the employee will receive at least two-thirds of their wages, with the daily benefit after that capped at $200 per day and $10,000 in total.

In general, employees on leave must be restored to their prior position.  This requirement does not apply to employers with fewer than 25 employees if the position held by the employee on leave no longer exists due to economic conditions or other changes in the employer’s operating conditions caused by the coronavirus pandemic. Employers are to make reasonable efforts to restore the employee to an equivalent position.

Employees under a collective bargaining agreement and whose employers pay into a pension plan are eligible for the paid emergency leave.

The Labor Department will issue regulations excluding certain healthcare providers and first responders and employers who have less than 50 workers, if these requirements would jeopardize the viability of the business as a going concern.

Employer Tax Credit Provisions

Wages paid under either of these leave requirements will not be subject to the 6.2% social security payroll tax paid by employers.  The law does not address the Medicare tax so it will continue to be imposed.

For sick leave wages, the credit is limited to $511 per day if the employee is on leave for categories one to three above and limited to $200 per day for leave under categories four through six above. The credit is limited to ten days of wages.

For family leave wages, a separate credit limitation applies, and the limitation is $200 per day, up to an aggregate of $10,000.

For those who are self-employed, the credit is allowed against regular income tax. The limit on sick leave is determined by multiplying the number of days, subject to limitation, that a self-employed person is unable to perform services under categories one to three above, by the lesser of 100% of their average daily self-employment income or $511. The limitation is reduced to the lesser of 67% of their average daily self-employment income or $200, if they can’t render services under categories four through six above. There is a similar credit computation for family leave, wherein the number of days, limited to 50, that a self-employed person is unable to perform services is multiplied by the lesser of 67% of their average daily self-employment income or $200.

Employers will receive refundable credits against their Social Security Tax liability to cover wages paid to employees under both these programs.

Any credits granted in this program will be treated as taxable income to avoid a double tax benefit since the payment of the wages is a deductible expense.

As always, we will continue to monitor the ever-changing impacts as a result of COVID-19 and will communicate updates to our valued clients and contacts as we receive breaking news.  As always, please contact us and reach out to your Tarlow Partner or staff member if we can be of assistance and if you have any questions.

Important Tarlow Tax Update: President Trump Extends Tax Filing Deadline

In a tweet on Friday, March 20, 2020, President Trump has directed Treasury Secretary Steven Mnuchin to extend the tax filing deadline to July 15, giving taxpayers more time to file their taxes in the midst of the coronavirus pandemic.

“At @realDonaldTrump’s direction, we are moving Tax Day from April 15 to July 15,” said Mnuchin. “All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.”

Earlier this week, the administration moved the payment deadline to July 15; however, the American Institute of CPAs, the National Society of Accountants, the National Conference of CPA Practitioners, and additional groups pointed out that was not enough. Many taxpayers are dealing with the effects of the COVID-19 pandemic and cannot access their offices and do not have their tax records.  A group of senators introduced bipartisan legislation on Thursday, March 19 to extend the tax filing deadline.

We will provide you with updates on these issues and more as soon as more information is available.

Click here to read the full update on Accounting Today 

Tarlow Tax Update for March 18, 2020

The Treasury Department and the IRS have decided on an extension for the time to make payments of federal income taxes; however, the April 15 filing deadline remains in effect. Taxpayers can request a six-month filing extension to Oct. 15, 2020.

Individuals and corporate taxpayers have 90 days to remit tax payments due with their 2019 income tax returns subject to certain limitations. Further details from the Treasury Department are expected to be approved shortly and we will communicate updates to you as they are announced.

The payment extension applies to both individuals and corporations with payments due April 15.

Included in the relief provisions announced by the Treasury Department are:

  • Individuals can defer up to $1 million in taxes due.
  • Corporations can defer up to $10 million in taxes due.
  • Payments of estimated quarterly tax payments paid by self-employed workers and businesses are also being considered for extension.  The first quarter estimated tax payment for individuals is due April 15.
  • It is critical to note that these payment deadlines apply to federal returns; they do not automatically apply to your state filing and payment requirements.

Stimulus Plans in the Works

Congress and the Trump administration are working on various relief packages. The House of Representatives passed the Families First Coronavirus Response Act (the Act). The Act includes payroll tax credits to assist employers in paying wages to employees needing time off due to the virus. This legislation has now moved to the Senate. We will provide additional details once it passes both chambers.

The President is proposing an $850 billion stimulus package as part of a more comprehensive relief package to maintain liquidity in the economy and assist industries hurt by this pandemic. The administration is also seeking ways to get cash to Americans as soon as possible.

We are all experiencing unprecedented circumstances, and income taxes and economic stimulus are no exceptions. Tarlow Partners and staff members remain dedicated to providing the superior level of service our clients have always received from us.  We are committed to preparing and filing your tax returns in a manner that is both timely and responsive to your needs and any concerns.  As always, should you have any questions concerning these tax filing and payment relief measures, please do not hesitate to contact us.  We will communicate additional updates as legislation is announced and approved.

NYC and U.S. Small Business Administration Disaster Loan Assistance Update

Tarlow is in contact with NYC Small Business Services and other regulators to remain updated and understand how state and local responses to COVID-19, such as shutdowns or restrictions, may affect small businesses. We wanted to ensure you knew that there is potential help from both New York City and the federal government.
NYC has the following two programs available:
  • For businesses with fewer than 100 employees who have seen a sales decrease of 25% or more, there is the potential for a zero-interest loan of up to $75,000.
  • For small businesses with fewer than 5 employees, a grant may be available to cover 40% of payroll costs for two months to help retain employees.
The federal government Small Business Administration loan assistance program includes:
Tarlow Partners and staff members are available to work with you on both of these programs to help you get the financial assistance you need during this difficult time.  We are also available to consult with you on all items related to contingency planning during this time. Please remember to use our Client Portal and do not hesitate to contact us if we can be of assistance, whether it is related to the COVID-19 situation or otherwise.

Tarlow:  Here for You and Doing Our Part to Stop the Spread of COVID-19

At Tarlow, we are closely monitoring the CDC’s developments regarding the spread and impact of COVID-19. Our Firm is working within the CDC’s recommended guidelines, and the guidelines of health departments in the regions in which we operate.

Although our offices are currently closed, we are open for business and are here to help.  All Tarlow Partners and professionals are working hard to serve our valued clients.  Please contact us with any questions and if we can assist you.

As COVID-19 affects a growing number of people and businesses around the world, caring for our team members, clients, and the broader community continues to be Tarlow’s top priority.

Caring for Our Team: Like many businesses, we have taken the precaution of closing our office and have implemented accommodations for all Partners and employees to work full-time from home. Over the past weeks, we have been preparing for this possibility to mitigate any interruptions in our client service and will continue working as usual.

Caring for Our Clients: We’re here for you! Tarlow’s team is connected and available to support you and answer your questions. All team members are readily available and welcome your requests to schedule phone calls and web meetings at your convenience.  We’re also in contact with NYC Small Business Services and other regulators to remain updated and understand how state and local responses to COVID-19, such as shutdowns or restrictions, may affect small businesses. Please remember to use our Client Portal and do not hesitate to contact us if we can be of assistance, whether it is related to the COVID-19 situation or otherwise.

Caring for Our Community: We will do all we can to assist the members of our community during this challenging time.  If a situation comes to your attention and you feel we may be able to assist, please do not hesitate to contact us.

We also encourage everyone to do your part to keep yourself and your community safe. You can do so by adhering to these recommendations from the Centers for Disease Control (CDC), and check out these helpful tips for staying connected while working from home.

COVID-19 Update and NYC Financial Assistance Programs for Small Businesses

As the Coronavirus (COVID-19) situation continues to evolve, we want to assure you that Tarlow is taking all necessary precautions to ensure the health and safety of our team members, their families, and our clients. It is our number one priority. To that end, we are continuously monitoring updates and recommendations from the World Health Organization (WHO), U.S. Centers for Disease Control and Prevention (CDC) as well as regional government agencies.

At this time, Tarlow’s offices remain open. If closing our physical locations becomes necessary for the safety of our team members and our clients, Tarlow will immediately shift to remote operations. Our investments in robust technology infrastructure and our commitment to a flexible work environment will allow us to remain available and responsive to our clients during this time of uncertainty. During remote operations, your advisors will be available to you by phone or virtual meetings over Zoom.

In the interim, to the extent that you can provide your client service team documentation electronically and do virtual meetings and phone calls rather than in-person meetings that would help us protect against physical transmission of the virus. 

While our goal is to maintain the highest level of service during this health crisis, we understand some team members will require personal time off due to the spread of the coronavirus. If you have any questions or concerns regarding Tarlow’s service, please reach out to your advisor or Partner. If you are unable to reach your Partner and need immediate assistance, please email info@tarlow.com and someone will respond to you within 24 hours. 

Additionally, for our small business clients fearing a reduction in revenue because of COVID-19, we would like to ensure you are aware of Mayor Bill De Blasio’s announcement that for businesses with fewer than 100 employees who have seen sales decreases of 25% or more there is the potential for zero-interest loans of up to $75,000. The City is also offering small businesses with fewer than 5 employees a grant to cover 40% of payroll costs for two months to help retain employees. More information can be found here: NYC COVID-19 assistance.  

Please reach out to your Tarlow Partner if you would like assistance with the City’s program.

As this situation evolves, we will continue to update you. We thank you for your continued loyalty and trust in our firm.