As a business owner in our current situation, you have a lot on your plate, including taxes. While the IRS is usually a source of stress, they’re doing their part to help those in need, including companies. If you’re still working through your taxes, here is what you need to know about the latest tax amendments.

Tax deadline has been extended

IRS is extending the tax deadline till July 15th for “affected taxpayers”. In this case, anyone with a federal income tax return or payment is considered an affected taxpayer. According to the IRS, a “person” is defined as a person, estate, partnership, trust, association, company, or corporation. So if you’re needing to explore tax payment plan options with the IRS or have any other questions now is the time to reach out to them or a qualified tax expert. 

The CARES Act is implemented

As of March 27, the Coronavirus Aid, Relief, and Economic Security Act or CARES is active. This law provides several tax incentives and relief options to aid entrepreneurs. With this provision, employers claim credits on employment taxes equal to 50% per employee’s wages to a maximum of $10,000 in each quarter. The act also allows employers and subcontractors to delay paying the employer-portion of their social security taxes and half of the tax imposed on their self-employment income. If entrepreneurs explore this option, 50% of the payment is due on Dec. 31, 2021, while the remaining balance is due the same time the next year.

Navigating these changes is challenging for business owners, so reach out to entrepreneurs experienced with these kinds of issues. AFEUSA members have access to several business coaching discounts to ensure they’re taking the right actions. If you’re a member, take advantage of these exclusive benefits through your membership portal.