COVID-19 Tax Relief Legislation – Part 1

Attention Clients:

As news changes daily regarding the COVID-19 (Corona) Virus, we are sure all of you have questions regarding tax relief legislation. We are monitoring pending legislation in Congress. The bill that was passed by the House of Representatives last Friday has yet to be approved by the Senate. At this time nothing definitive has been offered by Congress or the IRS.  

In the meantime, we urge you to check your state website for any information and changes in unemployment regulations due to the pandemic. Based on pandemic response requirements being considered by Congress, if you decide to close your business, we suggest you be prepared to continue paying your employees’ wages for the upcoming two weeks and possibly four weeks. At this point, this is a possible requirement being considered in the legislation and has not yet been mandated.

Other things to consider at this time: 1)  Evaluate your access to cash reserves and/or a business line of credit.  2) Reach out to your current banker or business lender to see if there are any special loan programs available to help you through this period of time. 3) Make sure you have a personal line of credit available as well for your own personal needs in case you cannot draw compensation from your business.

While we hope for the best, it is prudent to plan for the worst.

We will do our best to provide further guidance as more definitive relief is enacted by federal and state tax agencies.

Sincerely

Naden/Lean
410-453-5500
www.nlgroup.com

X