Also, the deadline to enter your banking information online with the IRS “Get My Payment” tool was this Wednesday, May 13, 2020. If you missed the deadline, you will not be able to receive your economic impact payment electronically through direct deposit. You will need to wait for a paper check to be mailed to you. If your tax filing situation doesn’t allow you to get that payment right now, you can still claim the $1,200 as a credit when you file your 2020 taxes next April.
All federal and MA filing and payment deadlines for anything due between April 15 and July 15 have now been extended to July 15, 2020. This includes your 2019 tax payment as well as estimated tax payments for both 1st and 2nd quarters. Be prepared to have funds for all of these payments by July 15, 2020.
Every business that has received PPP funds should be aware that it is not yet clear whether deductions used (such as payroll expenses) will be allowed. Bill 3612, which would clarify that the deductions are allowed, has been proposed by the Senate and is before the Senate Finance Committee. It has bipartisan support and is expected to go through, but if it does not pass, every business that received PPP funds should recognize they will have an unexpected tax liability next year.
There has been no movement on the bill regarding the debt forgiveness process of PPP loans, nor has the SBA provided clarification. Those who received loans of more than $2 million should prepare to be heavily scrutinized as to how those funds were used.
Heather will be appearing on the show every Wednesday to give ongoing updates. Tune in next Wednesday at noon on the PAC-TV community channel and Plymouth government channel (Comcast 13 and 15, and Verizon 43 and 47), or online at PAC-TV’s streaming channel. You will have the opportunity to ask questions via email. The email address will be shown onscreen during the PAC-TV broadcast.