Tax

On April 9, 2020, the IRS issued Notice 2020-18 which provides broad extensions for filing and payment deadlines falling on or after April 1, 2020, and before July 15, 2020. The good news is this change applies to many nonprofits offering important relief.

The recently enacted Coronavirus Aid, Relief and Economic Security (CARES) Act, opens the door to tax saving, retirement plan, and business financing opportunities for Atlanta businesses.

On March 27, President Trump signed the Coronavirus Aid, Relief and Economic Security (CARES) Act, a comprehensive economic stimulus bill that provides almost $2 trillion in assistance to businesses, individuals and organizations.

The federal government’s comprehensive response to the Coronavirus (COVID-19) pandemic addresses not only efforts to contain the virus, but several business changes designed to protect employees and help companies impacted by this traumatic economic event.

As the challenges of COVID-19 continue to impact individuals and businesses, there has been concern about how many will comply with the upcoming tax filing deadline. Earlier this week, it was announced that taxpayers received a 90-day extension to pay any taxes owed to the federal government, but the filing deadline of April 15th remained.

The speed at which the federal government is making changes to how businesses are permitted to operate in light of the Coronavirus pandemic has been lightning fast. These changes touch virtually every aspect of business from offering special disaster loans, unemployment benefits, sick leave policies to tax payment deadline extensions

The impact of the Coronavirus (COVID-19) prevention and containment measures can be seen across the Atlanta area. The closure of area public schools, cancellation of various conferences, limited access to restaurants and the restriction on gathering sizes speak to the seriousness of prevention efforts.

Many Atlanta business owners set time aside at the end of 2019 to review strategy, refine goals and identify tactics needed to reach success. Focus is typically centered on ways to expand market presence, drive sales and increase profitability. However, it’s highly unlikely any discussion was had about managing through a global pandemic.

Many Atlanta businesses pay close attention to tax planning at year-end. There are often easy steps that can be taken to immediately reduce federal and state income taxes. While effective, it’s important to review opportunities throughout the year to identify tax deduction and incentives which can be leveraged based on current or future plans. Atlanta businesses may be surprised to learn there are a number of tax incentives available from the state of Georgia for certain business activities.

When individuals terminate employment, an important question to consider is what to do with the retirement savings account.  If they participated in an employee stock ownership plan (ESOP) or otherwise hold company stock in their investment portfolio, the answer to this question becomes especially important. As company shareholders, they have different options than other employees with 401(k)s or 403(b)s that do not include company stock.