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Chortek Tax Updates - April 10, 2020

Deadline extensions, Main Street Lending Program, and Client News

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The IRS has extended more tax deadlines

The IRS announced last month that taxpayers would have until July 15, 2020 instead of April 15, 2020 to file and pay federal income taxes. Anyone taking this extension would not incur any penalty or interest for doing so.

Yesterday, the IRS announced that this extension would apply to individuals, estates, trusts, and corporations, including those individuals who live abroad (whose returns are generally due June 15), as well as additional returns, tax payments, and other actions.

Extensions also include Second Quarter Estimated Tax Payments originally due June 15. Now 1^st and 2^nd quarter payments are due July 15, 2020.

For 2016 tax returns, the normal April 15^th deadline to claim a refund has also been extended to July 15. If individuals have not filed for 2016 refunds yet, they are encouraged to do so.

Wisconsin is Following Suit

Wisconsin is also following the federal extensions of the second quarter estimated tax payments to July 15. Any estimated payment that is due on April 1, 2020 and before July 15, 2020 is extended to July 15, 2020. This also includes pass-through withholding payments.

They have also announced that the economic impact payment will not be taxable for Wisconsin income tax purposes.

Click below for the latest on due dates and payments, including an updated chart of various return due dates. There are also some questions relating to homestead filings (due April 15), contributions to Edvest (must be done by April 15), IRA contributions for 2019 (can be done up to July 15), HSA contributions for 2019 (can be done up to July 15), assuming that the individual returns have not yet been filed.

One month extensions can be requested to file Wisconsin withholding deposit reports, sales and use tax reports, and excise tax returns, but the payments must be made by the original due date to avoid the imposition of interest, which will be imposed at the rate of 1%.

Click for more information

Main Street Lending Program

Yesterday, the Fed launched the Main Street Lending program, a $600 billion program to help businesses who are struggling due to the COVID-19 pandemic. The program involves four-year loans for businesses that were in good financial standing before the coronavirus and that meet other specific criteria.

Even if you borrowed money through the Small Business Administration (SBA) Paycheck Protection Program, you may be eligible to participate in the Main Street Lending Program.

If you want to learn more about this program, please contact someone on your Chortek team, or reply to this email, and we can help you figure out if this could be a good fit for your business.

Client Spotlight: Kenco Label & Tag Co., LLC

In an effort to highlight what our clients are doing during this difficult time, Chortek has been collaborating with some of our clients to tell their stories. If you are interested in sharing your story with us, please email sdittloff@chortek.com or reply to this email.

Kenco Label & Tag‘s primary business is all in their name. Because they’re one of the most advanced label manufacturers in the world, there’s nothing with adhesives or labels that they’re not able to manufacture in their state-of-the-art facility. When they saw COVID-19 growing into the global pandemic it’s become, they adapted their production model to meet the changing needs of the environment.

Once Kenco heard about the PPE (personal protective equipment) shortages, they knew it was the right move to start shifting production to try to fill that need. Within a week, they had their first face shields available for sale.