Dear Friends,
You may have noticed that we have not yet hit your in-box with a message about the Miles Consulting response to the COVID-19 pandemic. We purposely didn’t want to send out yet another message about washing hands, staying 6 feet away from people, or working from home. It’s not that we aren’t sensitive to these matters. It just felt like some companies were sending out notices just to send something out. In the past few days, I’ve come to realize that while this situation has physically required us to stay away from contact with people, my network does want to interact – in fact, very much so. And I do too! So, it is in that spirit that we now post this blog with some information about how we may be of service during this time.
First, as you may know, most of our team members already worked remotely, even prior to the virus. Just a few of us had to now “move home” and regroup that way. That’s important, because you should expect very little disruption to our current service and to your projects as a result. Our team is already focused and equipped to work from home.
Also, we recognize that it’s not business as usual, but then again some of it IS. The kinds of things that you, our clients, engage us to consult on are complicated state tax matters that still will need attention.
- Audit assistance will continue to be a key matter for our clients. States may be more lenient on due dates for information for submitting data, but any audits currently underway will require timely attention to be certain that any administrative remedies are not missed or otherwise overlooked. The states are operational and many state employees also work from home and are equipped to do so.
- Taxability analysis and nexus reviews – many clients come to us because they are out of compliance (not sure where they should be filing) and many have retroactive exposure. Unfortunately, time doesn’t heal these wounds, and the more time that passes, the more liability a company may ultimately have. So, to the extent that we can assist with these projects now, you’ll benefit in longer run when the economy kicks back in.
- VDA projects will still need to move forward in a timely manner. We anticipate that as they are in process, states may be more willing to offer extensions, but will ultimately want to close those agreements out.
- Audited financial statements will still be due! We now have the resources to assist companies with special income tax projects, including state tax provisions. If you find that your department is short handed or overwhelmed by the disruption of your own staffing, please let us know if we can assist.
- Other project related work – during this difficult time, you may find that there are some special projects – answering notices, certain compliance, filling out registration forms, miscellaneous research – that your staff can’t take on. We can help!
Here are a few specific state tax (and federal tax) items that you may find to be helpful:
- On March 12, 2020, California Governor Gavin Newsom issued an Executive order in response to the COVID-19 State of Emergency. Pursuant to this Executive Order, the California Department of Tax and Fee Administration (CDTFA) has the authority to assist individuals and businesses impacted by the coronavirus. This assistance includes granting extensions for filing returns and making payments, relief from interest and penalties, and filing a claim for refund. For more information on the CDTFA’s response to the Corona Virus outbreak, click here.
The Treasury Department and the IRS has issued clarifying guidance to address industry confusion regarding the intent of Secretary Mnuchin’s press statements yesterday, which outlined new 2019 tax deadline relief in response to the Coronavirus emergency. Please click here for instructions on return filing and payment deadlines and exemptions. The 2019 tax return filing deadline remains April 15, 2020 (unless a formal extension is filed). 2019 tax payments due to the IRS are deferred for 90 days, interest-free and penalty free. Up to $1 million for individuals can be deferred for 90 days to July 15, 2020. Up to $10 million for corporations can be deferred for 90 days, to July 15, 2020.
Each state has their own rules surrounding dealing with the effects of the coronavirus. The California Franchise Tax Board announced special relief for CA taxpayers affected by the COVID-19 pandemic. It is granting a 60-day delay to June 15, 2020 for affected individuals and businesses unable to file on time. For the latest developments on tax information in your state, click here.
Please stay tuned for additional information. But most importantly, stay safe and healthy.
We look forward to keeping in contact via Zoom, phone, and someday again, a face-to-face meeting.
Fondly,
The Miles Consulting Team
