CVEP is diligently monitoring the responses by the United States and California governments to assist both people and businesses. Our goal is to communicate with the Coachella Valley’s business community about what can be done within the framework of passed legislation to mitigate the negative impacts of the COVID-19 threat.
To date there have been two actions taken that will have immediate impact on small business and citizens. As small businesses are often incorporated as S-Corporations or as Proprietorships, the business operations pass through to the shareholder’s individual tax returns.
Federal Tax Payments
What has happened thus far is that the IRS has delayed the historical April 15th date to have all taxes paid to July 15th. Any and all penalties and interest will be waived if the tax is paid by July 15th. So if you already have that check written and ready to mail on April 15th, you can delay mailing it until July 15th if that makes life easier for you.
State Tax Filing and Payments
On the State of California level, the due date is moved to June 15th. One key difference is that California’s extension applies to both filing and payment. California moved prior to the Feds and it is expected that they will move again and push the due date to July 15th but that has not happened yet.
As for the federal stimulus with all of the rumors of programs like cash payments, loans or reimbursements for additional sick time, it is best to wait until the bill has passed to see what really happens.
As new programs are passed CVEP will post our analysis of what our business community and people should do to help to ease the pain. We will be ready to assist businesses to take advantage of what is offered. We’ll continue to update with information on government assistance programs as more information becomes available. Stay strong, stay safe, support your neighbors, and keep a positive attitude for a bright future.