Technical topics regarding tax preparation.
How you gonna write an update on the new acts?
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26-Mar-2020 2:17pm

I consider myself a bit of a writer, but am having a very hard time getting my arms around the Coronavirus act with the 10 days of leave, the tax credit for the employer on that, then the pickup of FMLA after that with more tax credits, changes in due dates, now the new money stimulus based on 18 or 19...oh, and I left off the various biz loan programs now available....

Anybody start on it?

26-Mar-2020 2:59pm

the verbage is difficult

do you have a research company you use, like parker or thomspon...or natp....they should have letters.

26-Mar-2020 3:07pm

Those are always so weird and cold and most of it not even applicable....right now I've got about 4-6 different things open trying to gather the wheat from the chaff.

26-Mar-2020 3:16pm

I agree JR1, especially when you have a very specific niche clientele. So much doesn't apply they wouldn't even read a research company letter.

26-Mar-2020 3:22pm

The New York Times published a fairly comprehensive F.A.Q. today on the Senate version of the Coronavirus relief bill (although the highlighted points focus mostly on the benefits pertaining to individual and self-employed taxpayers -- not employers): https://www.nytimes.com/article/coronav ... swers.html

You might be able to Frankenstein a client letter based on that information (of course, you'd want to vet it first).

26-Mar-2020 3:37pm

I gotta wait until the Acts passed last week are subject to some coherent guidance. The biggest being the criteria for under 50 employee businesses being exempt. Another is the correct application of the credit to the ER FICA or to the entire 941 liability.

Now, I just send along The Poster and tell clients that they may not want to post it until either the under 50 criteria is set of April 1 or April 2, whenever the Act(s) are effective.

The fact that the Senate Bill 3548 changes some of last week's bill doesn't help in providing clarification to clients.

26-Mar-2020 3:59pm

Exactly. And what about owners who already had an ee or two on sick leave for mandatory quarantine? BEFORE the effective date of the act....do they get tax credit?

26-Mar-2020 4:22pm

JR No they don't get credit. The DOL Q&A from yesterday says this is not retroactive.
We are doing separate writeups for each law, cribbing from IRS releases, DOL releases, Checkpoint, and other newsletters we receive.

26-Mar-2020 4:28pm

First I'm going to wait for the House to pass it and the president to sign it. Then I'm going to use careful phrases to explain that it will likely be a couple of weeks or longer before Treasury and IRS make decisions about implementation and we are all going to have to be a little patient and not make too many assumptions.

26-Mar-2020 7:32pm

JR1 wrote:Those are always so weird and cold and most of it not even applicable....right now I've got about 4-6 different things open trying to gather the wheat from the chaff.


I'm glad I'm not the only one who feels that way. I do my best to translate tax law into English for my clients but I wasn't able to do that to my satisfaction for the sick leave bill. I think the stimulus bill will be easier to write but the problem is how quickly clients expect to know how much they will get and what date it will be in their bank account.

26-Mar-2020 8:23pm

sjrcpa wrote:JR No they don't get credit. The DOL Q&A from yesterday says this is not retroactive.
We are doing separate writeups for each law, cribbing from IRS releases, DOL releases, Checkpoint, and other newsletters we receive.


As noted in that other thread, but what about the clients who followed the IRS guidance that said it was available immediately. I will be jerry rigging the credit on at least one Q1 941. We will see how that works out.

Maybe it's only required starting 4/1.

26-Mar-2020 8:45pm

Wiles, how would you add the credit to an existing 941 form, and know for sure it's right?

26-Mar-2020 8:48pm

I don't, but will write in "Authorized by IR 2020-57" in case they deny it.

27-Mar-2020 9:21am

And then, this morning, trying to understand even a summary of the new stimulus bill supposed to pass today....no freakin' way a human can take all this in!

27-Mar-2020 9:51am

I have sent out a copy of IR 2020-57 to my small business clients and just told them to call to discuss or with any questions. Also advised that the logistics of how to handle things had not been finalized yet.

The new bill they are looking at passing is going to be a nightmare for all of us to understand and comprehend rapidly!

27-Mar-2020 10:45am

Apparently in the new stimulus bill to pass today? is the provision that biz's that do pay ee's prior to date of enactment will get tax credits as well....moving targets and way too many of them.

27-Mar-2020 11:01am

I'm not even addressing it until it is all signed, official, and IRS releases more information. If employers of 50 or less are exempt, then I may not even have anything to address.

27-Mar-2020 12:28pm

What exactly does it mean when it says employers of 50 or less are exempt? I have small employers (less than 50 employees)that want to continue to pay their employees. Can't they still take advantage of the items passed if they choose to continue paying?

27-Mar-2020 12:30pm

I think I understand it to mean that they don't HAVE to abide by the acts, but can if they choose to....Obviously, those provisions can be real burdensome on small biz unless they get some loans or grants.

27-Mar-2020 12:42pm

That is the way I understand it also. The pay is to be netted against the payroll tax due, with any shortfall refunded fairly quickly. Seems like everyone would be able to take advantage of that (unless I am missing something).
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