Tax

The impact of the COVID-19 pandemic has resulted in many changes for Atlanta area businesses. It started with the abrupt government orders around business closures and stay at home orders and transitioned to re-opening guidelines that mandate both employee and customer safeguards (facemasks, social distancing, and sanitizers). There are several well-documented loan programs such as the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) designed to help businesses financially thrive.

As state-mandated rolling shutdowns and business interruptions continue in the COVID-19 pandemic, there is still uncertainty approaching the months ahead. Even organizations that are still using the Paycheck Protection Program (PPP) funds are faced with cash flow planning concerns. By now, many Atlanta business owners are aware of the tax opportunities contained in the CARES Act.

As reported cases of COVID-19 continue to reach new highs in Georgia, with an average of 3,394 per day, there is an increasing concern in the business community that restrictions and forced closures will again be implemented.

For businesses not directly impacted by the COVID-19 forced business closures, there have been a number of necessary changes to maintain operations. Restaurants have had to shift from a dine-in experience to delivery or curbside pickup model, manufacturing companies have adjusted supply chains while others have transitioned to a remote workforce environment. Virtually overnight some employees were terminated, some forced to accepted significantly fewer hours and others faced the new challenge of working from home.

The COVID-19 emergency has forced both businesses and individuals to make difficult decisions. For businesses, it is all about maintaining positive cash flow and reducing expenses until market conditions return to “normal”.

On April 9, 2020, the IRS issued Notice 2020-18 which provides broad extensions for filing and payment deadlines falling on or after April 1, 2020, and before July 15, 2020. The good news is this change applies to many nonprofits offering important relief.

The recently enacted Coronavirus Aid, Relief and Economic Security (CARES) Act, opens the door to tax saving, retirement plan, and business financing opportunities for Atlanta businesses.

On March 27, President Trump signed the Coronavirus Aid, Relief and Economic Security (CARES) Act, a comprehensive economic stimulus bill that provides almost $2 trillion in assistance to businesses, individuals and organizations.

The federal government’s comprehensive response to the Coronavirus (COVID-19) pandemic addresses not only efforts to contain the virus, but several business changes designed to protect employees and help companies impacted by this traumatic economic event.

As the challenges of COVID-19 continue to impact individuals and businesses, there has been concern about how many will comply with the upcoming tax filing deadline. Earlier this week, it was announced that taxpayers received a 90-day extension to pay any taxes owed to the federal government, but the filing deadline of April 15th remained.