News & Insights > Covid-19 Statement

CURRENT OFFICE PROCEDURES AND IMPORTANT TAX PROVISIONS

UPDATED: October 24th, 2020

Current office procedures:

Our office will remain closed because of the Covid-19 pandemic. We want to keep our employees and our valued clients as safe as possible.  We are accepting no visitors.  We will only accept drop-off of packages at the door.  We recommend that you call beforehand to be sure that someone will be available to accept the package.

                             

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. We have replaced in-person meetings with tele-conference calls. Our office is functioning. Our working remotely has been successful. 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 during this challenging time. We continue to monitor and keep you informed of the Federal and State’s support programs and law changes. We will return to normal business operations when the current health crisis improves.

 

We look forward to continuing to serve you to the best of our ability.

 

 

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.

© 2020 by James Magno, CPA LLC

James Magno, CPA LLC​

51 Monroe Place, Suite 402

Rockville, MD 20850

 

     240-778-6041

info@taxjm.com

Contact Us