IRS Help for Coronavirus

Coronavirus Paid Leave from IRS

Coronavirus Paid Leave from IRS  -  March 20, 2020

A public notice sent out from the IRS Newswire service stated the following about the Coronavirus measures:

Treasury, IRS and Labor announce plan to implement Coronavirus-related paid leave for workers and tax credits for small and midsize businesses to swiftly recover the cost of providing Coronavirus-related leave

WASHINGTON – Today the U.S. Treasury Department, Internal Revenue Service (IRS), and the U.S. Department of Labor (Labor) announced that small and midsize employers can begin taking advantage of two new refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees. This relief to employees and small and midsize businesses is provided under the Families First Coronavirus Response Act (Act), signed by President Trump on March 18, 2020.

The Act will help the United States combat and defeat COVID-19 by giving all American businesses with fewer than 500 employees funds to provide employees with paid leave, either for the employee’s own health needs or to care for family members. The legislation will enable employers to keep their workers on their payrolls, while at the same time ensuring that workers are not forced to choose between their paychecks and the public health measures needed to combat the virus.

KEY TAKEAWAYS:

  • Paid Sick Leave for Workers
    • For COVID-19 related reasons, employees receive up to 80 hours of paid sick leave and expanded paid child care leave when employees’ children’s schools are closed or child care providers are unavailable.
  • Complete Coverage
    • Health insurance costs are also included in the credit.
    • Employers face no payroll tax liability.
    • Self-employed individuals receive an equivalent credit.
    • Employers receive 100% reimbursement for paid leave pursuant to the Act.
  • Fast Funds
    • An immediate dollar-for-dollar tax offset against payroll taxes will be provided
    • Where a refund is owed, the IRS will send the refund as quickly as possible.
    • Reimbursement will be quick and easy to obtain.
  • Small Business Protection
    • Employers with fewer than 50 employees are eligible for an exemption from the requirements to provide leave to care for a child whose school is closed, or child care is unavailable in cases where the viability of the business is threatened.
  • Easing Compliance
    • Requirements subject to 30-day non-enforcement period for good faith compliance efforts.

Need More Info?

For more information on the support and regulations from the IRS regarding the Coronavirus, please visit https://www.irs.gov/coronavirus

Need Tax Relief?

If you or someone you know is struggling with tax debt or IRS issues, please reach out to us!

Blackhawk Tax Solutions, LLC

(719) 694-5505

info@blackhawktaxsolutions.com

www.blackhawktaxsolutions.com


One Debt Solution We Love

One Debt Solution We Love

Do you have debt on your mind?

Now that the tax season is in full swing, we’re hearing a lot of different statements from clients.

Things like how their tax refunds are going to be used to pay down credit card bills or other debts.

I’ve heard that for years and, honestly, I think that was the biggest “negative” for taxpayers last year when the new tax bill went into effect…

In many cases, they did not owe as much, but the return they had come to expect was smaller or nonexistent, so it felt like they paid more.

So if you're one of the millions of taxpayers who try to use their refund to help sort out debt, I want to share another way you can work through that challenge.

The Debt Strategy

Now, I can’t claim this is my own idea – I heard about it years ago watching an interview with Dave Ramsey.  He calls it his “snowball” strategy and it basically works like this:

(And bear in mind, there is a far larger-reaching strategy at play here for those of you who really want to pursue Mr. Ramsey’s strategies)

To start with, you’ll list ALL of your debts, from smallest to largest.  This might be as easy as one or two credit cards, then the car notes, then the mortgage.  Just get it on paper.

Next, with respect to all of those debts, you’ll make the minimum payment on all of them EXCEPT for the smallest.  This one, you’ll pay down as much as you can that month.

Wash, rinse, and repeat.  Month after month, until the smallest debt is paid off, then move on to the next smallest.

Essentially, the idea is that by concentrating on one challenge, you’ll take care of it faster, and this will give you momentum (and extra money) to pay off the next smallest one.

Kinda like how a snowball grows larger and larger as it rolls down the hill.

Take Back Control

Last year was a very challenging one for many taxpayers, as they “lost – at least on paper – a financial windfall many had come to rely on every year.

The good news is there are still a lot of ways to save money and limit debt.

Is tax debt a major issue for you? Schedule a free, tax resolution consultation with us to explore your resolution options.

Blackhawk Tax Solutions, LLC

(719) 694-5505

lauren@blackhawktaxsolutions.com

www.blackhawktaxsolutions.com