I am sure by now you have been closely following the latest developments of COVID-19 and the numerous effects it has on our society. I hope you are all doing well and adapting to the changes it has bought upon our daily life. We have put together a FAQ for you to reference regarding your taxes and running your business.
Because changes and updates are happening every day, we have also compiled a list of links that we thought might be helpful to you.
Of course, if you have any questions regarding your tax needs, please feel free to send us an email or give us a call. As a reminder, while we are deemed an “essential business” and still operational at this time, our staff has been put on a rotational schedule in compliance with the “social distancing” order. Our response time to phone calls, voicemails, and emails may be a little delayed. Thank you for your patience and understanding.
Congress has passed and President Trump has signed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The CARES Act will provide relief to both individuals and businesses. National Association of Tax Professionals (NATP) has compiled a CARES ACT summary of the 247-page ACT, which I’ve attached to this email. But if you would rather read the bill, click here.
AMBS Frequently Asked Questions (FAQs):
1.) Will A.M. Business Services still be able to file my taxes on time?
We continue to be fully operational at this time. We are closely monitoring the situation and have been deemed an “essential business”. As a reminder, we are not offering any office meetings until further notice. We are looking into other alternatives such as video chat and screen sharing.
In order for us to prepare your taxes to the modified deadline, we request that all your tax documents be submitted to us by Monday, June 15, 2020.
2.) The email link to retrieve my tax organizer is no longer valid. Can you send me another link?
Please call our office at 596-7885 or email email@example.com to request your personalized tax organizers.
3.) How do I get my tax documents to you?
In accordance with the “Stay at Home, Work From Home” order, we are suspending all “in office” meetings as well as pick up and drop off of documents. Documents can be submitted by the following:
o Send and retrieve your files securely at https://ambshawaii.securefilepro.com
o Fax: 1-866-496-3253 or 808-380-9426
o Mail to: A.M. Business Services Inc., 1413 S. King Street Suite #211, Honolulu, HI 96814
We will contact you to confirm receipt of your documents.
4) I have not received my W-2 or 1099 yet. Or I lost it.
- Contact your employer or financial institution to verify the address your original tax document was sent to, request a copy.
- See if you can download the statement from the organization or financial institution.
- Contact the IRS for assistance at 800-829-1040.
- If after contacting the IRS, you still do not have your Form W-2, you have two choices:
- File your return by the July due date and use Form 4852, Substitute for Form W-2, Wage and Tax Statement. Try to estimate your wages and withholding as best you can.
- We can file ask for more time to file by using Form 4868, Application for Automatic Extension of Time to File U.S Individual Income Tax Return.
5) When will I get my stimulus check?
At this time, the IRS does not have any information available yet regarding stimulus or payment checks, which remain under consideration in Congress. Please do not call the IRS about this. When the IRS has more specific details available, IRS will make it available here..
Individual & Business Filing FAQ
1.) When is the tax deadline?
Individual and C-Corporation Federal Income Tax return deadlines for filings and payments has been extended to July 15, 2020.
For more information, please visit https://www.irs.gov/newsroom/tax-day-now-july-15-treasury-irs-extend-filing-deadline-and-federal-tax-payments-regardless-of-amount-owed
Individual and C-Corporation Hawaii Income Tax return deadline for filings and payments has been extended to July 20, 2020. If For more information, please visit https://files.hawaii.gov/tax/news/media/2020-03-23-relief_for_taxpayers_affected_by_the_COVID-19_emergency.pdf
2.) What if I already filed my 2019 Income Tax and I owed taxes?
If you wish to change your Federal tax payment date, call IRS e-file Payment Services 24/7 at 1-888-353-4537 to inquire about or cancel your payment, but please wait 7 to 10 days after your return was electronically filed and accepted before calling.
Read more at https://www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers
UNDERPAYMENT PENALTY: Currently the guidance does not cover Form 2210 Underpayment of Estimated Tax, so if you did not pay 2019 estimated taxes, you will still need to pay that penalty
Hawaii Income taxes- Contact the Hawaii Tax office at 808-587-4242 or log in to your Hawaii Tax Online (HTO) account to change your payment date.
3.) What if I am unable to file my 2019 Income Tax by the “extended” due dates of July 15, 2020 (Federal) and July 20, 2020 (Hawaii)?
If you are unable to file your Federal 2019 Income Tax by July 15, 2020, you may file a request for an automatic extension to file. Your tax return will be due on October 15, 2020. Please note this does not extend your payment if you owe. See for more info: https://www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers
If you are unable to file your Hawaii 2019 Income Tax by July 20, 2020, you may file a request for an automatic extension to file. Your tax return will be due on October 20, 2020. Please note this does not extend your payment if you owe. See for more info: https://files.hawaii.gov/tax/news/media/2020-03-23-relief_for_taxpayers_affected_by_the_COVID-19_emergency.pdf
4.) I am required to make estimated tax payments are both 1st and 2nd quarter payments extended to July?
Federal estimated tax payments for the 1st quarter of the tax year 2020 that was due on April 15, 2020 (January 1, 2020 to March 31, 2020 1st Qtr) is extended to July 15, 2020. As of right now, all other estimated tax payments are due accordingly.
- 1st Quarter TY2020 (January 1, 2020 to March 31, 2020): Due July 15, 2020
- 2nd Quarter TY2020 (April 1, 2020 to June 30, 2020): Due on June 15, 2020
- 3rd Quarter TY2020 (July 1, 2020 to September 30, 2020): Due on September 15, 2020
- 4th Quarter TY2020 (October 1, 2020 to December 31, 2020): Due on January 15, 2021
To download the Individual 2020 Federal Estimated Tax Vouchers visit: https://www.irs.gov/pub/irs-pdf/f1040es.pdf
For more information, please visit https://www.irs.gov/newsroom/payment-deadline-extended-to-july-15-2020
As of current, the State of Hawaii Department of Taxation has not extended the estimated tax payment deadlines for tax year 2020. State Estimated tax payments for tax year 2020 continue to be due as follows:
- 1st Quarter TY2020 (January 1, 2020 to March 31, 2020): Due April 20, 2020
- 2nd Quarter TY2020 (April 1, 2020 to June 30, 2020): Due on June 20, 2020
- 3rd Quarter TY2020 (July 1, 2020 to September 30, 2020): Due on September 20, 2020
- 4th Quarter TY2020 (October 1, 2020 to December 31, 2020): Due on January 20, 2021
You may submit estimated tax payments online at https://hitax.hawaii.gov/ or download Form N‑200V, Individual Income Tax Payment Voucher.
For more information and updates, please visit https://tax.hawaii.gov/covid-19/
5.) I already filed my 2019 Income Tax Return and scheduled payment on April 15, 2020 (Federal). Will my payment automatically change to be drawn on July 15, 2020 (Federal)?
If you have already scheduled a payment for Federal Taxes owed, IRS will not automatically change the payment to the new deadline of July 15, 2020. It will be deducted on the scheduled date when we filed your tax returns. You may cancel or reschedule your payment if you wish. Please visit https://www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers
The State of Hawaii Department of Taxation has not made any adjustments and or comments to this. If you scheduled a payment for State taxes owed, please assume it will draft according to what you scheduled. If you would like to cancel and or reschedule your payment, please contact the State of Hawaii Department of taxation directly.
6.) Does the relief provide more time to contribute money to an IRA, HSA, or Archer Medical Savings Accounts (MSA) for 2019?
Yes. Contributions may be made to your HSA or Archer MSA, 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 the federal income tax return is now July 15, 2020, under this relief, you may make contributions to your HSA or Archer MSA for 2019 at any time up to July 15, 2020. For more details on HSA or Archer MSA contributions, please visit https://www.irs.gov/publications/p969
7) Where is my refund?
- Federal Refunds: https://sa.www4.irs.gov/irfof/lang/en/irfofgetstatus.jsp
- Hawaii Refunds: hitax.hawaii.gov/link=WMR
Small Business / Independent Contractors / Employers FAQ
1.) I am an Independent Contractor or self-employed. Do I qualify for unemployment benefits?
Yes,you may be eligible. The Disaster Unemployment Assistance (DUA) program provides unemployment benefits to individuals who have become unemployed as a direct result of a Presidentially declared major disaster.
In order to qualify for this benefit your employment or self-employment must have been lost or interrupted as a direct result of a major disaster declared by the President of the United States. You must have been determined not otherwise eligible for regular unemployment insurance benefits (under any state or Federal law).
Payment will be made to an unemployed worker, who as a direct result of a Presidentially declared major disaster:
- No longer has a job.
- Is unable to reach their place of work.
- Cannot work due to damage to the place of work.
- Becomes the head of the household and is seeking work because of the former head of household died as a result of the disaster.
Please visit https://www.benefits.gov/benefit/597 to see if you are eligible for this benefit.
2.) Are the State of Hawaii General Excise and Transient Accommodations tax due dates been extended?
Filing and payment dates for all “Non-Income taxes” (Withholding, General Excise, Transient Accommodations, etc.) are unchanged and should be filed and paid accordingly. For more information, please visit: https://tax.hawaii.gov/covid-19/
3.) Has the deadline for payroll taxes been extended?
No, the deadlines for payroll tax filings and payments for both Federal and Hawaii have not been extended.
4.) COVID-19 has affected my business. What kind of relief programs are out there?
There are many relief programs to assist both employers and employees. Below are links to some helpful:
1.) Emergency Loans Small Business Guide and Checklist – Guidance from the U.S. Chamber of Commerce.
2.) Small Business Guidance & Loan Resources — Guidance from the U.S. Small Business Administration.
3.) SBA Economic InjuryDisaster Loans and Loan Advance (EIDL): In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.
Note: At this time, I am not clear if this will be considered taxable income…there is no mention of it on the website.