Accountants & Business Consultants
Treating Clients as Friends for 31 Years
CORONA VIRUS INFORMATION
SUMMARY OF THE
CARES ACT GOVERNMENT PROGRAMS
(click link below)
The personal federal (and most states) income tax filing due date has been extended from April 15, 2020 to July 15, 2020. Eligible taxpayers have until that day to fund a traditional IRA or Roth IRA for 2019. The 2019 contribution limit is $6,000, or $7,000 if you’re age 50 or older.
LATEST CLARIFICATIONS ABOUT GOVERNMENT ASSISTANCE:
Paycheck Protection Program (PPL) - If you are:
- A Managing Member of an LLC or General partner of a PARTNERSHIP who receives form K1, - - i.e., your small business is structured as one of these -
2. Sole Proprietor / Contractor who files Schedule C -
The amount that is considered for PPL is Net Profit, shown on Schedule C, line 31.
3. S-Corporations and C-Corporations -
The company must have paid payroll by filing quarterly forms 941 and issued W2 to employees. The amount that is considered for the PPL is your Payroll Costs (see our other postings for what is included in payroll costs).
As of this writing DISTRIBUTIONS FROM THE S-CORPORATION BUSINESS DO NOT QUALIFY for the PPP. If you fall into this scenario, you should consider other options such as the Emergency Disaster Loan (EIDL) - - see our other postings for qualification criteria.
THE OFFICE IS OPEN FOR APPOINTMENTS
THE TAX FILING DEADLINE HAS BEEN EXTENDED TO JULY 15th
PERSONAL INCOME TAX RETURNS:
The Treasury Secretary announced that the April 15 personal income tax filing deadline has been extended to July 15 for all taxpayers. This means taxpayers will no longer be required to file extensions on April 15 for Federal purposes. State legislations vary - - we're tracking changes and any required actions.
If you still cannot complete your tax returns by July 15, then an extension will be required. This will allow you until October 15 to file tax returns.
You also have until July 15 to pay any tax due with tax returns.
BUSINESS TAX RETURNS ORIGINALLY DUE ON MARCH 15th
(S-Corporations, Multiple Member-LLC's, Partnerships)
These returns were due on 3/15. The original deadline still applies. If an extension was timely filed by 3/15, returns are due by 9/15.
IRA CONTRIBUTIONS DEADLINE IS NOW JULY 15th
ESTIMATED QUARTERLY PAYMENTS DUE APRIL 15th ARE NOW DUE JULY 15th
SELECT LINK BELOW FOR UPDATED Q&A ON CORONAVIRUS TAX STIMULUS REGULATION:
1. The PPP/ PPL considers the gross amount shown on your 1099-Misc, box 7 or Schedule C, line 1 (in case not all income is reported on 1099-Misc) IF YOU HAVE NOT YET FILED YOUR 2019 TAX RETURN.
OTHERWISE, IF YOU'VE ALREADY FILED THE 2019 TAX RETURN, THEN THE NET PROFIT ON SCHEDULE C, LINE 31 WILL BE USED (since this is after expense deductions, then this is the amount that will be used).
2. If you take the PPP/ PPL loan, then the $10,000 you may have separately taken from the SBA Economic Disaster grant will be taxable.
3. Unemployment benefits are separate from the PPP/ PPL and Economic Disaster grant.
WHICH LOAN TO APPLY FOR:
A consideration, in determining, which loan to apply to: The break-even point for determining which type of loan to apply for is 1099-Misc, box 7 approx $50,000, where <$50K you use Economic Disaster loan and where box 7 is >$50K you use PPL.
If you're a business that pays wages, above also applies to wages you paid - Form W2, box 1 plus other payroll costs.
LLC & PARTNERSHIP INCOME:
For PPP/ PPL purposes we still do not have clarity on whether the income reported by the LLC or Partnership on Schedule K1 will be acceptable, but we rationalize that the processing bank may treat the self employment portion shown on Schedule K1, line 4c (Guaranteed Payments) and line 14 (codes A or C) (Self Employed Income and Gross Income) as eligible - - more on this soon.
Either way, you may still apply for the Economic Disaster Recovery Loan.
Tax Law Summary-Key Items
BOOK AN APPOINTMENT FOR TAX YEAR 2019:
Don't wait to receive all your documents. The 2020 appointments calendar is now open for times starting January 20th. Please click here to Book An Appointment.
The IRS has not yet announced the date on which it will begin accepting tax returns.
CLIENT LETTER & WORKSHEET - TAX YEAR 2019
We will publish and mail the updated Client Letter and Worksheet in mid-January for tax year 2019.
TAX LAW UPDATES APPLICABLE TO MOST INDIVIDUALS
Individual Health Care Mandate, which required taxpayers to have health care insurance or pay a penalty in most cases was eliminated. See a summary of other changes and other important information under tab: Tax Law Summary-Key Items..
NJ RESIDENTS - TAX DEDUCTION "WORKAROUND"
On January 13, 2020 - Law was passed in NJ to allow owners of business entities to pay their PERSONAL real estate and other property taxes from their BUSINESS accounts. This would make such taxes fully deductible. This is now legal strategy in NJ to get around the $10,000 Federal limitation on State and Local Income Taxes. See Tax Law Summary-Key Items for our recommendations, caution and other thoughts.
FILING DEADLINES (subject to change):
Federal Government filing deadlines as follows:
- Partnerships, Multiple Member LLC's and S-Corporations - March 15, 2020 Extension expires September 16
- Personal and Single Member (one-owner LLC's) - July 15, 2020 Extension Expires - October 15
- C Corporation - April 15, 2020 Extension expires October 15
- Foreign Bank Account Reporting - April 15, 2020 Extension expires October 15
Please send all E-MAIL messages to: Taxaccserv@BRISAFinancial.com
It is highly recommended that you DO NOT SEND DOCUMENTS VIA E-MAIL. Please ensure to use our Secure Server to send any tax documents (see link below) or fax or USPS mail.
- SECURE AND EASY WAY TO SEND TAX DOCUMENTS & IMPROVED DATA PROTECTION VIA OUR SECURE SERVER:
Go to "New-Send Forms Securely" tab on left or click below:
P.O. BOX 8
PERRINEVILLE, N.J. 08535
IDENTITY THEFT & SCAMS:
Great concern continues globally over tax return fraud from stolen identity.
NOTE: THE IRS WILL NEVER CALL YOU DIRECTLY OR CONTACT YOU VIA EMAIL. IF YOU RECEIVE A CALL FROM SOMEONE CLAIMING TO BE THE IRS, HANG UP AND NOTIFY AUTHORITIES. DO NOT ENGAGE IN CONVERSATION OR RESPOND TO EMAILS - THE LONGER YOU REMAIN ON THE PHONE OR IN CONTACT LOOP, THE MORE RISK YOU FACE.
See tab on left "Fraud Alert - How to Protect Your Information".
Avoid Common Penalties:
Select tab on left to see guidelines.
STATUS OF YOUR REFUNDS
IRS and most states allow you to check the status of your refund on-line. We've provided direct links for states used most commonly by our clients.
BRISA Financial Services Company Overview
Since 1990, we’ve provided personalized professional accounting, tax preparation, business consulting and start-up services to:
-Individuals and their Families
-Businesses - Corporations, LLC’s, Partnerships, Sole Proprietorships and Estates.
We started as a small firm dedicated to tailoring a very personalized approach for each client and have never forgotten what has kept us in business and growing for 31 consecutive years:
First, and Foremost a Personalized Core Approach:
No cookie-cutter, impersonal services here…
1. Firstly, we take the view that we are your trusted partners, friends and
2. Our information finding session/ interview is personal, friendly and exhaustive while respecting your privacy.
3. We spend the time to get to know all the particulars of your situation and guide you through the process in a friendly and constructive manner.
4. We put ourselves in your shoes and work with you through the thought process to bring out ideas, and customize an optimal strategy for your particular situation.
5. We prepare your work with the same care and diligence as if it were our own.
We have in-depth knowledge and expertise in a wide spectrum of industries and professions covering Artists to Zookeepers. Since we work through referrals only, our focus is on doing our personal best for each and every client, every time. We never take clients for granted or short-cuts that compromise the quality of our work ~ the ultimate goal is to look out for your interest and establish long-lasting relationships.
We utilize over 35 years of diversified professional and real-life experiences to focus on what's important to you.
1. Tax Preparation and Statutory Filings (Personal & Business)
2. Electronic Filing (Federal & All States)
3. Financial Statements Compilation & Write-up
4. Proposals to Banks, Prospective Employers & Other Third Parties
5. Accounting and Bookkeeping
6. Accounting Structure Set-up
7. Business Formation & Incorporations