Updated: September 28, 2020
We have one simple objective that guides us: keeping you and your families safe.
In keeping with that objective, our offices will be closed to the public starting Tuesday, March 17, 2020 until further notice.
We would like to emphasize that we are here for you and are available to listen to your concerns and answer any questions you may have. This is a unique situation and we want to do what is in the best interest of our clients and employees.
We are here to serve you well despite the current challenges. Check our website for updates. It will be THE reliable source for all vital communication regarding our response to changing conditions.
We have technology in place to continue serving you and to maintain firm operations, even while our offices are closed to the public.
The IRS has warned taxpayers that if they mailed checks (either with or without tax returns), the checks may still be unopened in the backlog of mail the Service is processing due to COVID-19. Any payments will be posted as the date the IRS receives them rather than the date the Service processed them. If you would like to learn more about the penalties and interest check out the article below.
Processing Pending Payments During COVID-19
On Friday, May 15th the Small Business Administration (SBA) released guidance for borrowers seeking forgiveness for their Paycheck Protection Program(PPP) loans. Based on this guidance the BC+S team has created an article that walks through the PPP Loan Forgiveness Application. If you would like to learn more about the process check out the article below.A Walk Through the Loan Forgiveness Application
Friday May 15th the SBA released their Loan Forgiveness Application. We wanted to share this with you while we work to understand this new information and how it applies to your PPP Loan. We will be updating the other website information as quickly as we can. This new guidance does clarify some open question and provides new options that were not contemplated by previously issued guidance.
You may have seen in the news a number a higher profile companies who received SBA loan funds from the Paycheck Protection Program later decided to return their money to the government. This program was intentionally fast moving and the high volume of need combined with the scarcity of funds in the first round of disbursements left many small businesses without funding. The pubic opinion of this program began to put pressure on both companies and banks, resulting in the decision by some companies to return the money.
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If you were lucky enough to get in the right line, getting the loan was relatively easy. Now that you have the money the hard work begins. Getting your entire loan forgiven will take homework, planning and detail tracking over your eight-week spending time.
Your Paycheck Protection Loan amount is based on 2.5 months of average payroll costs. You only have eight weeks to use the money on designated expenses. This eight-week period will determine how much of the loan you do not have to pay back. You need to do homework and planning to maximize the amount of the loan that is forgiven.
Please, remember the SBA is still giving guidance. We don’t know all the details yet. Check back here and we will update this information as we learn more.
If you have already been funded, you need to move quickly. But, even if you haven’t been approved or received your money you will want to begin gathering the following information, to plan. Start with some homework to determine your baseline FTE. You will need this to measure your potential forgiveness.
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As a result of the COVID-19 emergency, IRS announcements keep trickling out and more notification of relief from tax deadlines occur.
- Notice 2020-17 (March 18, 2020) – postponed due date for certain Federal income tax payments from 4/15 to 7/15
- Notice 2020-18 (March 20, 2020) – postponed due date for filing Federal income tax returns from 4/15 to 7/15
- Notice 2020-20 (March 27, 2020) – postponed certain Federal gift (and generation-skipping transfer) tax return filings and payments.
- Notice 2020-23 (April 9, 2020) – postponed Federal tax payment obligations, tax return or form filing obligations from April 1 through July 15 to July 15 and included the following:
- Individual income tax payments and return filings (1040, 1040-SR, 1040-NR, 1040-NR-EZ, 1040-PR, 1040-SS
- Corporate income tax payments and return filings (1120, 1120-C, 1120-F, 1120-FSC, 1120-H, 1120-L, 1120-ND, 1120-PC, 1120-POL, 1120-REIT, 1120-RIC, 1120-S, and 1120-SF
- Partnership return filings (1065, 1066)
- Estate and trust income tax payments and return filings (1041, 1041-N, 1041-QFT
- Estate and generation-skipping transfer tax payments and return filings (706, 706-NA, 706-A, 706-QDT, 706-GS(T), 706-GS(D), 706-GS(D-1)
- Form 706 filed pursuant to Rev Proc 2017-34
- Form 8971
- Gift and generation-skipping transfer tax payments and return filings on Form 709
- Estate tax payments of principal or interest due as a result of an election made under sections 6166, 6161, or 6163
- Exempt organization business income tax and other payments and return filings on Form 990-T
- Excise tax payments in investment income and return filings on Form 990-PF and excise tax payments and return filings on Form 4720
- Quarterly estimated income tax payments calculated or submitted with Form 990-W, 1040-ES, 1040-ES(NR), 1040-ES(PR), 1041-ES, 1120-W
It is important to read and understand the catch-all paragraph in Notice 2020-23 that refers to “time-sensitive actions”, Rev Proc 2018-58 (139 pages worth), and the term Affected Taxpayers.
- 990s with original or extended due dates from April 1, 2020 to before July 15, 2020 are postponed until July 15, 2020
- 5500s with original or extended due dates from April 1, 2020 to before July 15, 2020 are postponed until July 15, 2020
- 5227s with original or extended due dates from April 1, 2020 to before July 15, 2020 are postponed until July 15, 2020
What types of returns do we prepare that have not been postponed from their usual filing requirement:
- Information returns – 1099 (information returns were unaffected)
- Payroll reports – 941, etc. (no payroll reporting has been changed)
- IC-DISC – 1120-DISC (they are due outside of the April 1 to July 15 time period)
This is the federal picture only.
Stay tuned for an update on Oregon due dates.
There is a lot of uncertainty in our world and businesses right now. Thankfully our people are all well and working hard to stay on top of the current changes in laws and find opportunities to help you stay in business in order to keep your people employed.
The expanded options through SBA loans are one of those opportunities. These loans will provide cash to help your company.
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Thank you for checking in with us on the latest payroll developments surrounding the COVID-19 legislation, specifically the Families First Coronavirus Response Act (FFCRA) or just the Act. This article only applies to companies with less than 500 employees, and hopefully it clarifies some of your questions. These changes are effective April 1.
The most pressing (and confusing) part of the Act focuses on additional sick leave benefits for employees. The Act is an expansion of the Family Medical Leave Act (FMLA). There are two main expansions under this change: The Emergency Family and Medical Leave Expansion portion of the Act, and the Emergency Paid Sick Leave portion. Let me break these two sections down for you.
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The Secretary of the Treasury has determined that anyone with the following is affected by the COVID-19 emergency and needs relief:
- A Federal Gift Tax
- Generation-Skipping Transfer Tax Payment Due
- Another Need to File Form 709 (United States Gift and Generation-Skipping Transfer Tax Return Form)
If any of these apply to you the April 15, 2020 due date is automatically postponed to July 15, 2020. This relief is automatic; there is no requirement to file for extension (Form 8892)
As a result of the automatic postponed due date from April 15, 2020, to July 15, 2020, the calculation of any interest, penalty, or addition to tax for failure to file a Form 709 will be disregarded and deferred. Interest, penalties, and additions to tax will begin to accrue on July 16, 2020.
Lastly, an Affected Taxpayer may choose to file for an extension (Form 8892) by July 15, 2020, to move your due date to October 15, 2020 if needed.
12 Things Should Know About the New July 15th Tax Due Date
The IRS posted 24 frequently asked questions on its website on Tuesday March 24th clarifying the new July 15 TAX DUE DATE. Here is a quick summary of the 12 most pertinent items Individuals, Businesses, Estates, and other taxpayers
- If an income tax return was due on April 15, 2020 (including any extended income tax returns), there is an automatic extension to July 15, 2020 (FAQ #3 and 4).
- If the due date is after April 15, 2020, there is no automatic extension. Those currently are due on their scheduled date (FAQ #5).
- Payroll and excise tax returns do not have an extension (FAQ #6).
- Estate and gift tax returns and payments are still due on April 15, 2020. If you need to file either return, get an extension (FAQ #7).
- If your return has already been filed, you only need to pay the tax by July 15, 2020 to avoid interest and penalties. There is no special form to file (FAQ # 13).
- If you need additional time beyond July 15, simply file an extension any time before July 15 (you can even file it now) and you will have until October 15 to file; you must pay any tax due by July 15 (FAQ #12).
- If you scheduled a payment electronically with the IRS on April 15, you can unwind that payment, but it requires some work. This can apply to either a tax return payment or estimated tax payment. The IRS explains what is needed to unwind it (FAQ #14).
- The first quarter tax estimate due April 15 has been extended, BUT the second quarter estimate is still due on June 15 (subject to change via new Senate Bill in process) (FAQ #16).
- The IRA contribution due date is officially July 15 for this year (FAQ #17).
- Retirement plan contributions are also extended to July 15, 2020 (FAQ #20).
- HSA and Archer MSA due dates are also extended to July 15, 2020 (FAQ #21).
- Underpayment of estimated tax penalty will continue to accrue past April 15. There is no grace period between April 15 and July 15, 2020 (FAQ #24).
From the Oregon Department of Revenue website and the Director following the announcement on March 25, 2020 by Governor Kate Brown:
For Personal Income Tax (PIT), Transit Self-Employment Tax, and Fiduciary Taxpayers:
- The Oregon return filing due date for tax year 2019 is automatically extended from April 15, 2020 to July 15, 2020.
- The Oregon tax payment deadline for payments due with the tax year 2019 tax return is automatically extended to July 15, 2020.
- Estimated tax payments for tax year 2020 are not extended.
- The tax year 2019 six-month extension to file, if requested, continues to extend only the filing deadline until October 15, 2020.
For Corporate Excise/Income Taxpayers:
- The Oregon return filing due date for tax year 2019 is automatically extended from May 15, 2020 until July 15, 2020. Fiscal year returns due after May 15, 2020 are not extended at this time.
- The Oregon tax payment deadline for payments due with the 2019 return by May 15, 2020 is automatically extended to July 15, 2020. Payments for fiscal year returns due after May 15th, 2020 are not extended at this time.
- Estimated tax payments for tax year 2020 are not extended.
No automatic extension is provided in this Order for the payment or deposit of any other type of Oregon tax or for the filing of any Oregon information return.
Federal Tax Update
Contributions can be made to your IRA, for a particular year, at any time during the year or by the due date for filing your return for that year. Because the due date for filing Federal income tax returns has been postponed to July 15, the deadline for making contributions to your IRA for 2019 is also extended to July 15, 2020. For more details on IRA contributions, see Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs)
Oregon Tax Update
The Oregon Department of Revenue (ODR) understands the impact of knowing whether or not filing and payment deadlines will be extended for personal income tax and corporate income/excise tax to match federal extensions. They’re still in the process of evaluating the statewide impact of granting relief for multiple tax programs administered by the department.
At this point, they believe they will have decisions on potential extensions by Wednesday, March 25. They realize earlier certainty would be helpful and apologize for the continued inconvenience.
They are actively working to reach decisions that provide the best possible benefit to Oregonians in this difficult time.
The ODR will provide guidance as soon as decisions are reached. The ODR will send a Revenews bulletin as soon as a decision is made. (Revenews, March 19, 2020)
The situation has also been discussed in the Legislature’s Joint Virus Committee March 23, 2020 and in other forums for the last week.
ODR also released a document entitled “COVID-19 tax relief options” listing personal income taxpayer options to request additional time.
For corporate activity taxpayers (CAT) the department will not assess underpayment penalties to taxpayers making a good faith effort to estimate their first quarter payments. (March 13, 2020)
City of Portland/Multnomah County Tax Update
Portland is evaluating its options to provide relief to Portland and Multnomah County business and Arts Tax taxpayers. The City and County generally follow the guidelines of the Oregon Department of Revenue. They will make a formal announcement after Oregon publishes their decision.(COVID-19 Revenue Division Program Relief)
United States Small Business Administration
The US Small Business Administration is accepting applications for short-term low interest loans to small businesses with less than 500 employees. These loans offer a one-year deferment on payments. Check out this article on How small businesses can apply for SBA disaster loans.
On March 20, 2020 the IRS released Notice 2020-18 moving the April 15, 2020 due date to July 15, 2020 for filing returns and paying federal income taxes. Oregon estimated tax payment due dates are set independent of the federal government and are due on the following days:
- Q1: Wednesday, April 15, 2020
- Q2: Monday, June 15, 2020
- Q3: Tuesday, September 15, 2020
- Q4: Friday, January 15, 2021
As of Friday March 20th, the IRS is extending the 2019 federal income tax filing deadline to July 15, 2020. The IRS and Oregon Department of Revenue are working to respond to the global pandemic and provide relief to taxpayers. Make sure to check back here for regular updated information. Please review the following to understand the effect of these changes.
|Tax Year||Individuals, Trusts, & Corporations Income Tax||Federal||Oregon|
|2019||Tax return filing due date moved from April 15 to||Wednesday, July 15, 2020||Tied to Federal Due Date|
|Tax payment due date moved from April 15 to||Wednesday, July 15, 2020||Tied to Federal Due Date|
|2020||First quarter tax estimate payment due||Wednesday, July 15, 2020||Wednesday, April 15, 2020|
|Second quarter tax estimate payment due||Monday, June 15, 2020||Monday, June 15, 2020|
Note: that the Oregon quarterly payment due dates are independently established by the state and are not tied to actions taken by the federal government.
The Oregon Department of Revenue has received several questions asking if Oregon is going to provide similar relief to the Federal relief provisions. Now that the department knows what the IRS is providing, the ODR is evaluating its options and authority under the statues to provide relief for Oregon and its taxpayers. We expect a decision to be made soon.
Contact your client relationship manager or our office if you have any questions. We are dedicated to continue serving you and strive to do so creatively as we implement social distancing.
2019 – 2020 Tax Return Filing and Payment: COVID-19 Aftermath
The Internal Revenue Service (“IRS”) addressed tax relief measures for taxpayers affected by the coronavirus pandemic (Notice 2020-17).
These measures include a 90-day extension of time to pay certain federal income tax payments (to July 15, 2020).
Federal Income Tax Filing – No Relief
The IRS, as of now, is NOT automatically extending the April 15, 2020 deadline for filing federal returns. Taxpayers may still extend their time to file if required by their circumstances.
Federal Income Tax Payment Relief
Following the President’s declaration of a national emergency on March 13, 2020, the U.S. Treasury Department and IRS issued guidance on March 18, 2020, allowing taxpayers to postpone until July 15, 2020 federal income tax payments that are otherwise due on April 15, 2020 up to specified limits.
Penalties and interest will not accrue during this time.
Please note the following highlights of Notice 2020-17 issued yesterday:
- An “affected taxpayer” includes any person with a federal income tax payment due April 15, 2020 (thus, this includes all taxpayers);
- Individual and other non-corporate tax filers may defer up to $1,000,000 (the dollar limit is the same for single individuals and for married filing jointly);
- Corporate taxpayers and members of a consolidated group may defer up to $10,000,0000.
- This relief is available for the following payments due on April 15, 2020:
- federal income tax payments for the 2019 tax year.
- federal estimated income tax payments for the 2020 tax year (i.e., Q1 payments).
- The deferral of tax payments only applies to federal income taxes. For example, it does not apply to payroll, gift, estate or excise tax.
- The deferral does not apply to second-quarter estimated tax payments that will be due June 15, 2020.
- The deferral does not apply to 2019 IRA contributions due on April 15, 2020.
Please note, this guidance does not automatically extend the April 15 filing deadline for federal tax returns or other information returns. Thus, taxpayers must either file these returns or extensions of time to file by the April 15 deadline.
Oregon Tax Filing and Payment Relief
On March 18, 2020, the IRS issued a news release (Notice 2020-17) allowing all individual and other non-corporate tax filers to defer up to $1 million of federal income tax (including self-employment tax) payments due on April 15, 2020 until July 15, 2020, without penalties or interest. The guidance also allows corporate taxpayers a similar deferment of up to $10 million of federal income tax payments that would be due on April 15, 2020 until July 15, 2020, without penalties or interest. This guidance does not change the April 15 filing deadline. Filing an extension is still an option if required by your situation.
The Oregon Department of Revenue has received questions asking if Oregon is going to provide similar relief. Now that the department knows what the IRS is providing, they are evaluating the options and authority under the statutes to provide relief for Oregon and its taxpayers. They expect to make a decision soon. We will provide updates when they make decisions.Oregon Department of Revenue
Congressional Coronavirus Relief Bill (H.R. 6201):
On March 16, 2020, the House passed an updated version of H.R. 6201, a coronavirus relief bill that provides a) paid leave benefits to employees; b) tax credits for employers and self-employed taxpayers; and c) FICA tax relief for employers.
We will continue to seek clarification and update as appropriate
Receiving your documents:
- We would like to receive tax source documents and deliver tax returns electronically or by mail. Alternatively, clients may use the mail slots (Albany, Stayton & Salem (The building is open to the public from 7:30 to 5:30 Monday – Friday)) or by US mail for the Salem Office.
Delivery of tax returns:
- Safesend – Electronic delivery and signature
- US Mail – Receiving client copy of tax return. Please sign form 8879 and return to BC+S by file upload from website, fax, or by mail in the provided return envelope.
- Sharefile – Secure electronic delivery. Please sign form 8879 and return to BC+S by file upload from website, fax, or by mail in the provided return envelope.
For specific needs regarding your account, please reach out to your BC+S Accountant by e-mail or contact our BC+S team by calling
- Ph: 503.585.7751
- Fax: 503.370.3781
- Ph: 541.928.3354
- Ph: 503.769.2186
- Fax 503.769.4312
We will keep this page updated with any future announcements related to BC+S and the impact of the coronavirus in our communities.