On March 25, 2020, the US Senate passed the Coronavirus Aid, Relief, and Economic Security Act in the Senate (the “CARES Act”), that should it become law, would increase the maximum Small Business Administration’s 7(a) loan amount to $10 million and would expand allowable uses of 7(a) loans to include payroll support (including paid sick or medical leave), employee salaries, mortgage payments, insurance premiums and any other debt obligations.

If your company is planning a mass layoff of approximately 50 or more, it would assist the Department of Workforce Development (DWD) if you could provide employee specific information.  This will assist DWD in processing unemployment insurance (UI) claims more quickly for your impacted staff.

On March 20th, the IRS issued Notice 2020-18 which extended the filed date and payment date for all federal income taxes and income tax returns to July 15th. However, the filing due dates for exempt organizations required to file 990 series information returns have not changed. The original due date for Forms 990, 990-EZ, and 990-PF for calendar year taxpayers remains May 15, 2020.

Gov. Eric Holcomb has issued a “Stay at Home” order for the state of Indiana. The order will be effective from Wednesday, March 25, to April 7, 2020.

On March 11, 2020, the IRS issued Notice 2020-15 that allows high deductible health plans (HDHPs) to pay for testing and treatment of the coronavirus (COVID-19) without jeopardizing their tax status. Consequently, an individual enrolled in an HDHP that covers these costs continues to be eligible to contribute to a health savings account (HSA).

INDIANAPOLIS – Today, Governor Eric Holcomb announced the Indiana Department of Revenue (DOR) is extending certain filing and payment deadlines to align with the Internal Revenue Service (IRS) and support Hoosiers during the COVID-19 health crisis.

“Last night, the IRS announced tax payment extensions for individual and corporate returns. We understand that Hoosiers need that same relief and our teams are swiftly taking steps to make that happen,” commented DOR Commissioner Bob Grennes.

“Since COVID-19 is impacting so many, in addition to the payment extensions announcement by the IRS, we are also extending the associated Indiana tax return filing deadlines.”

Individual tax returns and payments, along with estimated payments originally due by April 15, 2020 are now due on or before July 15, 2020. Returns included are the IT-40, IT-40PNR, IT-40RNR, IT-40ES, ES-40 and SC-40.

Corporate tax returns and payments, along with estimated payments originally due by April 15 or April 20 are now due on or before July 15, 2020. Those originally due on May 15, 2020, are now due on August 17, 2020. Returns included are the IT-20, IT-41, IT-65, IT-20S, FIT-20, URT-1, IT-6, FT-QP and URT-Q.

All other tax return filings and payment due dates remain unchanged.

If Hoosiers need additional time to file, they can request an extension. Instructions for those extensions can be found on DOR’s website. If an individual requests a federal extension, Indiana automatically extends the state deadline and there is no need to file anything additional.

“DOR is working hard to ensure that customers are getting the assistance they need. Our team can still be contacted through phone and email, and we encourage customers to take advantage of those options.”

DOR team members are continuing to provide customer service by phone and email, Monday through Friday, 8 a.m. – 4:30 p.m., local time. Customers have the following service options:

• Call DOR’s individual customer service line at 317-232-2240.
• Call a specific District Office—contact information can be found on DOR’s website at dor.in.gov/3390.htm.
• Call DOR’s Motor Carrier Services at 317-615-7200.
• Contact a specific DOR business unit using a list of phone numbers and email addresses available at dor.in.gov/3325.htm.
• Email DOR using the online form at dor.in.gov/3392.htm.

This article was published on March 19, 2020, by the Indiana Department of Revenue. To read the full article, click here. 

Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic

Notice 2020-17

I. PURPOSE

On March 13, 2020, the President of the United States issued an emergency declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act in response to the ongoing Coronavirus Disease 2019 (COVID-19) pandemic (Emergency Declaration). The Emergency Declaration instructed the Secretary of the Treasury “to provide relief from tax deadlines to Americans who have been adversely affected by the COVID-19 emergency, as appropriate, pursuant to 26 U.S.C. 7508A(a).” Pursuant to the Emergency Declaration, this notice provides relief under section 7508A(a) of the Internal Revenue Code for the persons described in section III of this notice that the Secretary of the Treasury has determined to be affected by the COVID-19 emergency.

 II. BACKGROUND

Section 7508A provides the Secretary of the Treasury or his delegate (Secretary) with authority to postpone the time for performing certain acts under the internal revenue laws for a taxpayer determined by the Secretary to be affected by a Federally declared disaster as defined in section 165(i)(5)(A). Pursuant to section 7508A(a), a period of up to one year may be disregarded in determining whether the performance of certain acts is timely under the internal revenue laws.

III. GRANT OF RELIEF

The Secretary has determined that any person with a Federal income tax payment due April 15, 2020, is affected by the COVID-19 emergency for purposes of the relief described in this section III (Affected Taxpayer).

For an Affected Taxpayer, the due date for making Federal income tax payments due April 15, 2020, in an aggregate amount up to the Applicable Postponed Payment Amount, is postponed to July 15, 2020. The Applicable Postponed Payment Amount is up to $10,000,000 for each consolidated group (as defined in §1.1502-1) or for each C corporation that does not join in filing a consolidated return. For all other Affected Taxpayers, the Applicable Postponed Payment Amount is up to $1,000,000 regardless of filing status. For example, the Applicable Postponed Payment Amount is the same for a single individual and for married individuals filing a joint return. In both instances, the Applicable Postponed Payment Amount is up to $1,000,000.

The relief provided in this section III is available solely with respect to Federal income tax payments (including payments of tax on self-employment income) due on April 15, 2020, in respect of an Affected Taxpayer’s 2019 taxable year, and Federal estimated income tax payments (including payments of tax on self-employment income) due on April 15, 2020, for an Affected Taxpayer’s 2020 taxable year. The Applicable Postponed Payment Amounts described in this section III include, in the aggregate, all payments described in the preceding sentence due on April 15, 2020 for such Affected Taxpayers.

No extension is provided in this notice for the payment or deposit of any other type of Federal tax, or for the filing of any tax return or information return.

As a result of the postponement of the due date for making Federal income tax payments up to the Applicable Postponed Payment Amount from April 15, 2020, to July 15, 2020, the period beginning on April 15, 2020, and ending on July 15, 2020, will be disregarded in the calculation of any interest, penalty, or addition to tax for failure to pay the Federal income taxes postponed by this notice. Interest, penalties, and additions to tax with respect to such postponed Federal income tax payments will begin to accrue on July 16, 2020. In addition, interest, penalties, and additions to tax will accrue, without any suspension or deferral, on the amount of any

Federal income tax payments in excess of the Applicable Postponed Payment Amount due but not paid by an Affected Taxpayer on April 15, 2020.

Affected Taxpayers subject to penalties or additions to tax despite the relief granted by this section III may seek reasonable cause relief under section 6651 for a failure to pay tax or seek a waiver to a penalty under section 6654 for a failure by an individual or certain trusts and estates to pay estimated income tax, as applicable. Similar relief with respect to estimated tax payments is not available for corporate taxpayers or tax-exempt organizations under section 6655.

The health and well-being of our team members, families, clients, and communities is of the utmost importance to HSC.  We are closely monitoring the local coronavirus (COVID-19) developments and the guidance of national, state and local health agencies.  As a result, we are implementing necessary precautions to protect the health and safety of our people, families, clients, office visitors and others.

In addition, HSC is making every effort to ensure that this situation will not affect the timeliness or quality of the work we are doing for you, our valued clients.

Client Service, Flexibility, and Remote Work

At this point, the April 15^th deadline has not changed (although it has been proposed) and what we must accomplish to assist you in meeting your tax compliance requirements remains the same.  Given this, we commit to continue to serve your needs and provide our ongoing high standard of service. If deadlines get extended, we will inform you as well as provide additional guidance.

Our technology and processes will enable our team members to continue to serve your needs remotely if the need arises.

In addition, our team members have the spirit and desire to do what is necessary to help meet your important deadlines and continue to serve your needs.

HSC Team Members at Your Location

It is critical that HSC maintain a high level of service to you during this time, as well as following good practices to help keep your workplaces healthy.  Therefore, our team members have been instructed with the following guidelines.

1. Do not work at your site if they, or a member of their family, is sick.
2. Connect with you to ensure that your site is open, that you want them to come.
3. Follow our communicated health hygiene practices and understand any guidelines you might want them to follow.
4. If you do not want them to come onsite, we will work with you to determine what can be remotely coordinated with you.
5. If there is any anticipated impact to your deliverables or deadlines, to communicate with you early and co-develop a revised plan of action.

If you have any concerns or questions about our teams working on site, please contact a member of your HSC team.

Resilience in uncertain times

The last several days have resulted in a deep sense of uncertainty that all of us have rarely, or perhaps have NEVER, experienced in our lifetime.  But, I remain certain of no less than three things at HSC:

1. We have a resilient and awesome team at HSC,
2. We are blessed with a rare and special culture, and
3. We and you, our clients, will work in partnership through this situation together.

Thank you for being a valued client!

Scott A. Olinger, CPA
President and CEO         

Summer Learning Experience

Apply for the Harding Shymanski Leadership Experience, where you will explore public accounting within our firm.

• Meet our team members, like-minded peers, and begin to build a professional network.
• Gain valuable insight into our firm’s culture and have an opportunity to ask our multi-department panel your questions.
• Our firm wants to inspire you to become the next generation of professionals and equip you with the necessary information to make a successful career choice.

Program Dates: June 18-19, 2020

Application Deadline: April 20, 2020

Click Here to apply.

Harding Shymanski & Company, P.S.C. would like to welcome five interns and seasonal employees!

From top left Madelyn Happe, Audit Intern; Bailey Sierota, Tax Intern; Kenneth Garcia, Audit Intern.

Not pictured: Andrew Zieg, Audit Intern; Billie Heckle, Tax Associate.