TAX EFFECTS DUE TO COVID-19

You Are Not Alone – HKMP Is Here For You.

At HKMP, we understand that at times of uncertainty, our clients look to us for guidance.  Please be aware of the following:

Current Hours of Operation:

  1. We are 100% up and running and working remotely, the exception being limited access to the office and thus paper mail. Although Gov. Cuomo has closed down all non-essential services in NYC, accounting is considered essential, so we may have a person at the office, but only to receive mail, Fed Ex, deliveries, etc.
  2. If possible, please send documents electronically. This will help limit the number of touches/contacts in an effort to prevent potential spread. This will also expedite your tax filings.
  3. In a concerted effort to do our part to limit the spread of COVID-19, unless necessary, we will not be engaging in face-to-face client meetings. We will gladly Skype, Zoom, FaceTime, etc. in lieu of meeting.

In Addition:

  1. With the growing concern over the drop in the stock market, please reach out to us if you would like to discuss possible tax related options, such as converting your traditional IRA to a Roth IRA and gifting of closely held business stock & interests.
  2. Small business administration loans are available for NY & NJ at a rate of 3.75% (rate subject to change).
  3. NYC Financial Assistance will be offering to help retain employees if you are still open and offering zero-interest loans up to $75,000 if you were severely affected.
  4. Contact your bank as it may have different programs available to assist small businesses.
  5. Federal income tax filing and payments have been delayed until July 15th, 2020. The payments include tax return payments due with 2019 Form 1040, as well as your first  quarter estimated tax payment, normally due 4/15/2020. Please note that this tax payment deferral does NOT relate to any 2019 estimated taxes that were NOT paid on a timely basis.  These unpaid amounts will be subject to interest and penalty. This would also apply to state estimated tax payments. Also, so far, this does NOT apply to any June 15, 2020 estimated tax payments.
  6. No change for payroll taxes.
  7. Specific NY/NJ/CT/PA changes are as follows (and subject to change):

Connecticut

Income Tax 30 day filing extension for corporation business tax (June 15), unrelated business income tax (June 15), and pass-through entity tax (April 15) returns. June 15 deadline extension for payment of corresponding tax liability. July 15 filing and payment extension for personal income tax returns. (Press Release, Connecticut Department of Revenue, February 2020Press Release, Department of Revenue Services, March 20, 2020)

New Jersey

Legislation, A 3841, would automatically extend time to file gross income tax or corporation business tax return if federal government extends filing or payment due date for federal returns. However, the extended due date will be no later than June 30, 2020. The legislation passed the house on 3/16 and the senate on 3/19.

New York

For all taxes, filing deadlines unchanged. Penalty and interest may be waived for quarterly and annual filers who were unable to file or pay on time due to COVID-19. Returns must be filed and the amount due must be paid within 60 days of the due date for the relief to apply.  All current information can be found at the NY State Taxation and Finance Department website. 

New York City

Business and excise taxes. Penalties waived for late-filed business and excise tax returns due between March 16 and April 25, 2020. (Finance Memorandum 20-2, NYC Department of Finance, March 19, 2020)

Pennsylvania

The deadline for taxpayers to file their 2019 Pennsylvania personal income tax returns is extended to July 15, 2020. This means taxpayers will have an additional 90 days to file from the original deadline of April 15. The Department of Revenue will also waive penalties and interest on 2019 personal income tax payments through the new deadline of July 15, 2020. This extension applies to both final 2019 tax returns and payments, and estimated payments for the first and second quarters of 2020. (Alert Details, Pennsylvania Department of Revenue website, March 23, 2020).

 

As always, please call us to discuss any further concerns you may have.

All the best,

Ron Kranzler                                  Russell Kranzler                                    Tim McCosker   

Managing Partner                          Partner                                                    Partner

RonKranzler@hkmp.com              RussKranzler@hkmp.com                     TMcCosker@hkmp.com

(917) 595-5922                               (917) 595-5925                                       (917) 595-5920

 

Anthony Pulice                                  Thomas Scotti                                    Stephen Barrett

Partner                                               Partner                                                Partner

APulice@hkmp.com                           TScotti@hkmp.com                           SBarrett@hkmp.com

(917) 595-5928                                   (917) 595-5926                                   (917) 595-5918