Posted: April 7, 2020
Posted: March 29, 2020
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 The email link to retrieve my tax organizer is no longer valid.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 firstname.lastname@example.org 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:
- Send and retrieve your files securely at https://ambshawaii.securefilepro.com
- Fax: 1-866-496-3253 or 808-380-9426
- 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
- 2rd 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.
Posted: March 23, 2020
DOTAX Operational Status as of March 23, 2020 (3PM): The Department of Taxation has issued Tax Announcement 2020-01 to grant special tax relief for State income taxpayers similar to the Internal Revenue Service (IRS).
- The due date for filing 2019 State income tax returns due from April 20, 2020 to June 20, 2020 is postponed to July 20, 2020.
- The due date for making 2019 State income tax payments due from April 20, 2020 to June 20, 2020 is postponed to July 20, 2020.
- Additional action is not needed by Income taxpayers to participate in this tax relief program.
The relief provided in the Announcement applies solely to returns and payments for Tax Year 2019 due from April 20, 2020 to June 20, 2020, and does not include estimated income tax payments for the 2020 taxable year.
Please see the Tax Announcement for more information.
Filing and payment dates for all non-Income taxes (Withholding, General Excise, Transient Accommodations, etc.) are unchanged.
Posted: March 20, 2020
This morning, U.S. Treasury Secretary Steven Mnuchin announced via Twitter: “At @realDonaldTrump’s direction, we are moving Tax Day from April 15 to July 15. All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.”
We expect the IRS will issue official guidance today or Monday, officially extending the deadline.
As of today, State of Hawaii has not mentioned any extension of the tax filing date or tax payments.
Extended Tax Payment:
The IRS issued Notice 2020-17 clarifying the recent announcement by Treasury Secretary Mnuchin extending tax payments.
- Individuals and small businesses can delay paying any federal income tax payments until July 15, 2020.
- Interest and penalties are waived
- Applies to federal income tax up to $1 million
- Includes self-employment tax
- Includes federal estimated income tax payments due on April 15, 2020
- Corporations can delay paying any federal income tax payments until July 15, 2020.
- Interest and penalties are waived
- Applies to federal income tax up to $10 million
- Does not apply to corporations that file a consolidated return
At this time, penalties and interest will begin to accrue on July 16, 2020 (assuming no further relief is provided).
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. However, if you owe a balance due, there is relief if you pay by July 15.
The guidance in Notice 2020-17 is specific and narrow in scope and we can only rely on what is provided to date.
Posted: March 17, 2020
It is no surprise that the COVID-19 pandemic is rapidly affecting our society. We are constantly monitoring all developments on the Federal and State levels and will continue to remain operational during this time. Our top priority is the health and safety of our clients and staff.
EFFECTIVE IMMEDIATELY – we will be suspending all face to face / in-office meetings and visits until further notice. Clients with upcoming appointments will be contacted for alternate methods.
We highly recommend utilizing our tax portal to exchange documents. You may continue to drop off your tax documents via our door slot and/or fax. We will contact you to confirm receipt of your documents.
Today, the Trump administration announced a 90-day extension for businesses and individuals on their 2019 tax payments. Please note that this does not extend the April 15th deadline to file your 2019 income tax returns, and income tax returns should be e-filed or postmarked by April 15, 2020. The details of filing are still pending but expected to be released in a couple of days.
The State of Hawaii Department of Taxation has issued a statement on 3/17/2020: “DOTAX is using caution to maintain Normal Operations to process returns, payments, and refunds and provide taxpayer services. ….Tax filing and payment deadlines have been maintained.”
Again, we are closely monitoring the situation and will keep you updated on any new developments regarding your tax needs.
Posted: March 16, 2020
As you are well aware, the Coronavirus, known as COVID-19 is rapidly affecting our way of life. We want you to know that our primary concern is for the health and safety of our clients and staff. We are closely monitoring any and all developments of COVID-19 and the potential impact it may have. It is clear that this situation poses an unprecedented challenge as we face even more uncertainty with the days to follow. While we will continue to remain operational, we have taken proactive measures to help ensure the well being of everyone.
Effectively immediately, will be limiting all face to face / in office meetings and visits. In person meetings and visits must be scheduled ahead of time and will be done on a case by case basis. We will be utilizing the use of our Client Portal, Email, “Snail-Mail” and/or Fax to send and receive documents. If you do not have access to any of these, you may drop off your documents at our office via the mail slot. Please put all your documents in a large envelope, and our staff will confirm with you via email and/or telephone once your documents have been received. While we enjoy seeing our clients and catching up, we feel limiting our social interaction is necessary at this time.
As a reminder, we request that your documents be submitted by Monday, March 16, 2020, to meet the April 15, 2020 deadline. Documents received after Monday, March 16, 2020, we will file an automatic extension.
This week, President Trump declared a payroll tax cut and an extension of the April 15 filing deadline. At this time, no other details were provided. We are closely monitoring the situation and will update you as more information becomes available. Until then, we will act according to what is currently in place.
Our response to COVID-19 will evolve as the situation develops. We will keep you informed on all updates and changes pertaining to your tax needs. If you should have any questions, please feel free to call our office or send us an email.