News & Insights > Covid-19 Statement

CORONAVIRUS POLICIES AND TAX ORGANIZERS

UPDATED APRIL 23, 2021

Our office will continue to remain closed because of the Covid-19 pandemic in the interest of keeping our employees and our valued clients as safe as possible.  We will be continuing our current policy of no visitors and no in-person appointments.  We will be accepting drop-off of packages at the door.

 

Tax organizers will be sent out in mid-January through USPS. If you do not receive yours by mid-February, please request one to be electronically sent to you at info@taxjm.com.

Your options for returning your 2020 tax organizer and tax documents this year will be:

 

  • Sending through the mail or electronically by secure email.

  • Drop off at the door.

  • Courier pickup at your location.

 

Via mail: We recommend that whichever carrier you choose to use, you opt for some sort of method to track it, such as through USPS priority mail. Consider private carriers such as UPS or FedEx as an option as well.

 

Via email: If you plan to send your documents electronically, please reach out to your contact to receive a link to our secure portal system, Citrix’s ShareFile. DO NOT send any files with confidential information (especially SSNs) in an unsecured email.

 

Via drop off: We will accept drop offs Wednesdays through Fridays between 11am and 5pm. Ring the doorbell and we will come to the front door. Please do not step inside the office.

 

Via courier: If you contact us by 5pm on Monday of each week, we will contact our courier service to arrange a pickup on Wednesday through Friday between 10am and 4pm. Reach us by email at info@taxjm.com or by phone at 240-778-6041 ext. 100.

We are monitoring and responding to phone voicemails and emails remotely.  We are receiving mail by USPS, FedEx, UPS and other couriers. Our Associates are continuing to telework as much as possible. We are limiting the number of our staff in the workplace at the same time by rotating shifts. In-person meetings have been replaced with tele-conference calls. Our working remotely has been successful and our Associates have been able to prepare your tax returns and respond to your tax needs in an effective manner.

Thank you for your understanding and flexibility during this challenging time. We hope to return to normal business operations as soon as the current health crisis allows. In the meantime, we look forward to continuing to serve you to the best of our ability.

                             

IMPORTANT TAX PROVISIONS

 

Notes regarding tax relief provisions in connection with COVID-19:

 

    • IRA and qualified plan provisions

      • You can contribute to your IRA (for tax year 2019) through 7/15/20.

      • You can elect to waive taking your required distribution (RMD) for year 2020.

      • You can reverse an RMD: if it was taken between 2/1 and 5/15/20 and rolled over by 7/15/20, the 60 day rollover rule is waived.

      • 10% early withdrawal penalty waived for coronavirus related 2020 qualified plan or IRA (deductible, nondeductible or Roth) withdrawal up to 100K.

      • For coronavirus related distribution (taxpayer, spouse or dependent diagnosed from CDC approved test) – no penalty AND you can pay back the distribution any time during the 3 year period (starting day after distribution was received).  Repayments are treated as rollovers made within 60 days. 

        • Corona virus related distributions can be reported as income in the year taken.  Or, they can be included in income ratably over 3 years beginning with the tax year the distribution was taken.  Repayment is limited to the amount of distribution.

    • Stimulus check (if you qualify to receive it):

      • It is an advance on a 2020 refundable tax credit.

      • If you get too much now you do not have to pay it back.

      • If 2020 info allows you a larger credit you get it on your 2020 return.

      • A personal representative is not entitled to keep a stimulus check for a deceased taxpayer.

      • You can check on its status on www.IRS.gov by accessing the “Get my payment” tool.

    • 401k and qualified plan loans

      • Loan limits up to 100K for loans made during the 180-day period starting 3/27/20.  If the due date of the loan occurs between 3/27/20 and 12/31/20, payment date is delayed for a year.

    • Charitable Contributions

      • $300 cash contribution allowed if you do not itemize.

Business related provisions:

    • Employee retention payroll tax credit - if you pay payroll and you did not receive a PPP loan, you should contact your payroll service.

    • NOLs from 2018-2020 can be carried back.  This is a change to allow carryback of loss instead of carryover only.

    • Payroll Protection Program Loan Forgiveness
      On Friday, June 5, 2020, President Trump signed the bill that changed the rules for loan forgiveness of amounts received under the Payroll Protection Program. The new rules extend the covered period to pay payroll from eight weeks to twenty-four weeks and reduces the payroll expenditure requirement from 75% to 60% of the loan amount.  If you received a Payroll Protection Program Loan, please contact us if you want us to help you track the payroll period and payroll expenditures and complete the loan forgiveness application.

 

Local area due dates – individual income tax:

  • June 1, 2020: Virginia 2019 balance due if applicable.

  • June 1, 2020: Virginia 2020 first quarter estimate due.

  • June 15, 2020: Virginia and DC second quarter estimated tax due.

  • July 15, 2020: federal, DC and Maryland 2019 balance due.

  • July 15, 2020: effectively due date for filing extensions for 2019 for federal, DC and Maryland 2019.

  • September 15, 2020: federal, Maryland, Virginia and DC third quarter estimated tax due.

  • October 15, 2020: extended due date for federal, Maryland and DC returns. We generally also use this as due date for Virginia (actual due date November 1, 2020).

E-File reminder:

  • Please return your signed E-File authorization forms upon receipt of your tax return. Any delay in returning these forms will delay refunds due.  It will also help us maximize the efficiency of the E-File system.

  • Note that any payment due for your return can be paid up to the due date of the return. In other words, you can sign and return the E-File authorizations long before you are required to send payment.

Reminder about our receiving and delivery:

  • Best practice:  Email documents to us. Upon request, we will provide a secure link for you to send PDF documents via Citrix ShareFile. Important note: Do not send us pictures, i.e., JPEG files.  We cannot process them.

  • We are receiving mail. Although our staff is working remotely, we do have a limited presence within the office. Our “in-office” activity includes processing mail.

  • Our office is not open to receive visitors. There are no current plans for that policy to change.

Thank you for your patience in adapting to our office policies.  Your cooperation is truly appreciated, and it makes a difference.