As the world health community continues to monitor the COVID-19 virus, the health and safety of our team, our clients and our community are of the utmost importance. We are here to help you.
Leone, McDonnell & Roberts is committed to providing a safe and healthy workplace.
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Tax Filing & Payment Deadlines
|IRS Federal – S Corporations / Partnerships (1065)||March 15, 2021||The deadline for filing 2020 1065 tax returns in March 15, 2021. With extension, the deadline is September 15, 2021.||More Info.|
|IRS Federal – Estates/Trusts (1041)||April 15, 2021||The deadline for filing 2020 estate/trust tax returns is April 15, 2021.||More Info.|
|IRS Federal – C Corporations (1120)||April 15, 2021||The deadline for filing 2020 individual tax returns is April 15, 2021.||More Info.|
|IRS Federal – Individuals (1040)||May 17, 2021 (extended)||The deadline for filing 2020 individual tax returns has been extended from March 15, 2021. Individual taxpayers can also postpone federal income tax payments for the 2020 tax year due on April 15, 2021, to May 17, 2021, without penalties and interest, regardless of the amount owed. If you file an extension, deadline is October 15, 2021. The notice does not extend the April 15 due date for estimated tax payments.||More Info.|
|New Hampshire – Business Tax Returns and Interest & Dividends Tax Returns||April 15, 2021||There have been no changes to the NH state tax deadlines. The deadline is April 15, 2021.||More Info.|
|Massachusetts – Individuals||May 17, 2021 (extended)||The filing deadline is extended to May 17, 2021. The extension does not apply to 2021 estimated payments or business returns.||More Info.|
|Maine – Individuals||May 17, 2021 (extended)||The deadline for filing and making payments on 2020 tax returns is extended to May 17, 2021. The deadline extension does not apply to corporate tax returns and payments, and it does not apply to individual and corporate estimated tax payments. These estimated payments are still due on April 15, 2021.||More Info.|
|Connecticut – Individuals||May 17, 2021 (extended)||The deadline for filing and making payments on 2020 tax returns is extended to May 17, 2021. Estimated payment deadlines have not been extended.||More Info.|
|Vermont – Individuals||May 17, 2021 (extended)||The deadline for filing and making payments on 2020 tax returns is extended to May 17, 2021. Interest and penalties will not accrue if payment requirements are met by May 17, 2021. Estimated payment deadlines have not been extended.||More Info.|
American Rescue Plan 2021
The American Rescue Plan Act, H.R. 1319, a $1.9 trillion COVID-19 relief bill, was passed by Congress on March 10, 2021 and signed by President Biden on March 11, 2021.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act)
CARES Act is the $2 trillion stimulus bill to abate the economic challenges…contains many tax provisions, ranging from credits to temporary changes to retirement plan rules.
Increased up to 13 weeks (total 39 weeks of unemployment benefits). Provisions include an additional $600 per week payment for up to four months. Benefits also available to self-employed, independent contractors, gig workers.
- Benefits effective for unemployment, partial unemployment or inability to work that began on or after January 27, 2020. Can be paid retroactively. Ends December 31, 2020
- Additional guidance from the US Department of Labor: https://www.dol.gov/general/topic/unemployment-insurance
- New Hampshire: https://www.nhes.nh.gov/index.htm.
- Maine: https://www.maine.gov/unemployment/claimants/
- Massachusetts: https://www.mass.gov/orgs/department-of-unemployment-assistance
- To File a Claim: https://www.mass.gov/unemployment-insurance-ui-online
Economic Impact Payments / Recovery Rebate
Direct payments to Americans, based on adjusted gross income from 2019 (or 2018 if you haven’t filed your 2019 return).
- Get My Payment: https://www.irs.gov/coronavirus/get-my-payment
- Get My Payment FAQs: https://www.irs.gov/coronavirus/get-my-payment-frequently-asked-questions
- About the Recovery Rebate (LMR Blog)
- Social Security recipients do not need to file an income tax return in order to receive benefits.
Employee Retention Credit
The Employee Retention Credit (ERC) is a CARES Act relief program that allows for a refundable tax credit against payroll taxes. It is designed to help businesses who chose to keep their employees on payroll. The credit can be significant to eligible businesses.
Who Is Eligible?
1) A business who was fully or partially shut down due to a mandated government order (federal, state, county, city)
2) A business who had decreased revenue:
- 2020 quarterly revenue decreased by 50% or more compared to same quarter in 2019
- 2021 quarterly revenue decreased by 20% or more compared to same quarter in 2019
3) Small businesses:
- In 2020: businesses with fewer than 100 full time employees
- In 2021: businesses with fewer than 500 full time employees
You may be eligible for both the Paycheck Protection Program (PPP) and the ERC. Reach out to your trusted Leone, McDonnell & Roberts tax advisor to find out if you may qualify for and claim the Employee Retention Credit.
Employer Payroll Tax Delay
Employers (and self-employed individuals) can defer paying their portion of the Social Security payroll tax (6.2 percent) otherwise due with respect to wages accrued between March 27, 2020 and December 31, 2020. Half of the deferred amount of payroll taxes from 2020 will be due December 31, 2021, with the remaining half due December 31, 2022. Employers of all size are eligible. Cannot be used if you received an SBA loan.
Student Loan Payments By Employers
Provides tax-free status to employer-paid student loan repayment assistance programs through end of 2020 (up to $5,250 a year). The payments are also excluded from an employee’s income.
- Payments must be for a student loan incurred for the education of the employee.
- The rules for education-assistance programs under Section 127 will apply.
Student Loan Payment Suspension / Interest Waiver
All payments due on certain federal loans is suspended until September 30, 2020. (Non-defaulted, Direct Loans and FFEL loans). The Act states interest shall not accrue while the loan payments are suspended. On August 8, 2020, President Trump directed the Secretary to continue to suspend loan payments, stop collections, and waive interest on ED-held student loans until December 31, 2020.
- 5 Things to Know About Current Repayment Flexibilities and Your Federal Student Loans
- 6 Things Students Need to Know During the Coronavirus (COVID-19) Emergency
Allows non-itemizing individuals an above-the-line deduction for up to $300 in qualified charitable contributions made during the year against their AGI in 2020.
If a taxpayer, spouse or dependent is diagnosed with COVID-19, or if they have been affected by adverse financial consequences as a result of being quarantined, furloughed, laid off, had their work hours reduced due to the virus, or unable if they are unable to work because of lack of child care, individuals can withdraw as much as $100,000 from their qualified retirement plan accounts through the end of 2020 and treat them as non-taxable rollover contributions as long as the funds are repaid to the plan in the next three years. These distributions are exempt from the 10% early withdrawal penalty generally applicable to distributions made to those 59-1/2 or younger.
Additionally, the CARES Act adds a provision provides a temporary one-year waiver in required minimum distributions (RMDs) for defined contribution plans, including 410(k), 457(b) and IRAs. It appears the intent for this relief is to apply both to participants whose required beginning dates would otherwise be April 1, 2020, and to participants already receiving RMDs and scheduled to continue receiving those payments in 2020.
SBA Guidance & Loan Resources
SBA COVID-19 Disaster Assistance
SBA highlights areas in which small business owners should anticipate encountering difficulties during this time.
- General Information: https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources
The SBA is providing disaster relief measures and resources in the following areas:
Paycheck Protection Program
Federal loan program that helps businesses impacted by the coronavirus (COVID-19) to retain their workforce. Applicants are encouraged to apply early as the program has a cap and demand is likely to be high. The SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
The Paycheck Protection Program closed May 31, 2021
- 1st Draw Eligibility:
- Sole proprietors, independent contractors, and self-employed persons
- Any business concern that meets SBA’s size standards
- Any business, 501(c)(3) nonprofit, 501(c)(19) veterans organization, or tribal business concern with the greater of:
- 500 employees, or
- that meets the SBA industry size standard if more than 500
- Any business with NAICS code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location
- 1st Draw Application Form (3.18.21)
- 1st Draw Borrower Application Form for Schedule C Filers Using Gross Income (3.18.21)
- View lenders near me
- Additional information regarding 1st Draw PPP
- 2nd Draw Eligibility:
- Previously received a first draw PPP loan and will or has used the full amount (for authorized uses)
- Has no more than 300 employees; and
- Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020
- 2nd Draw Application Form (3.18.21)
- 2nd Draw Borrower Application Form for Schedule C Filers Using Gross Income (3.18.21)
- View lenders near me
- Additional information regarding 2nd Draw PPP
The Paycheck Protection Program 1 closed August 8, 2020.
Paycheck Protection Program (PPP) Forgiveness:
- 1st Draw PPP Forgiveness Terms
- Employee and compensation levels are maintained
- The loan proceeds are spent on payroll costs and other eligible expenses; and
- At least 60 percent of the proceeds are spent on payroll costs
- 2nd Draw PPP Forgiveness Terms
- Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan
- The loan proceeds are spent on payroll costs and other eligible expenses; and
- At least 60 percent of the proceeds are spent on payroll costs
- Contact your PPP Lender and complete the correct form
- SBA Form 3508 Paycheck Protection Program Loan Forgiveness Application (updated 01-19-21)
- SBA Form 3508EZ Paycheck Protection Program Loan Forgiveness Application (updated 01-19-21)
- SBA Form 3508S Paycheck Protection Program Forgiveness Application (updated 01-19-21)
- Loan Forgiveness Requirements and Loan Review Procedures as Amended by Economic Aid Act
- FAQs – Frequently Asked Questions about PPP Loan Forgiveness (10-13-2020)
- Additional PPP Loan Forgiveness Information
Economic Injury Disaster Loans (EIDL)
If you are a small businesses, non-profit organization of any size, or a U.S. agricultural business with 500 or fewer employees that have suffered substantial economic injury as a result of the Coronavirus (COVID-19) pandemic, you can apply for the COVID-19 EIDL. This loan applies to all businesses based in any U.S. state, territory, or the District of Columbia. On June 15, SBA resumed accepting new Economic Injury Disaster Loan (EIDL) applications from all eligible small businesses, private non-profits and U.S. agricultural businesses. To be used for working capital and normal operating expenses.
To learn more about eligibility and apply, click here.
- EIDL Application: https://covid19relief.sba.gov/#/
- EIDL FAQs: https://www.sba.gov/document/support-faq-regarding-covid-19-eidl
Restaurant Revitalization Fund
Applications are now closed.
This program, established as part of the American Rescue Plan, provides assistance for eligible restaurants, bars, and other qualifying businesses impacted by COVID-19. This program will provide restaurants with funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023. Registration for the SBA application portal is now open. Applications will open on Monday, May 3, 2021, at noon ET. See How to apply for more detail.
- Restaurant Revitalization Application Portal: https://restaurants.sba.gov/requests/borrower/login/?next=/
- Program Guide: https://www.sba.gov/sites/default/files/2021-04/2021.04.20%20-%20Restaurant%20Revitalization%20Funding%20Program%20Guide%20Finalshare-508.pdf (4.28.21)
- Sample Application: https://www.sba.gov/sites/default/files/2021-04/SBA%20Form%203172%20RRF%20Application%204.20.21-508.pdf (4.19.21)
Shuttered Venue Operators Grant
This grant offers emergency assistance to eligible venues (live venues, theatrical producers, live performing arts operators, museum operators, cinema operators and talent representatives) affected by COVID-19. The program includes over $16 billion in grants to shuttered venues, to be administered by SBA’s Office of Disaster Assistance.
- SVOG FAQs: https://www.sba.gov/document/support-faq-regarding-shuttered-venue-operators-grant-svog
- SVOG Application Checklist: https://www.sba.gov/document/support-shuttered-venue-operators-grant-application-checklist
- SVOG Application Portal: https://www.svograntportal.sba.gov/
SBA Cross-Program Eligibility
Other SBA Assistance
State Resources – New Hampshire
- Main Street Relief Fund 2.0
- Application period: October 19-30, 2020
- FAQs: https://www.goferr.nh.gov/new-hampshire-main-street-relief-fund-20-frequently-asked-questions
- More information: https://www.goferr.nh.gov/covid-expenditures/main-street-relief-fund?utm_medium=email&utm_source=govdelivery
- Main Street Relief Fund:
- Application period: June 5-12, 2020
- About the Fund: https://www.goferr.nh.gov/covid-expenditures/main-street-relief-fund
- Main Street Relief Fund Reporting 1.0 and 2.0:
- NH Nonprofit Emergency Relief Fund:
- Application period: June 11-25, 2020
- About the Fund: https://www.goferr.nh.gov/covid-expenditures/nh-nonprofit-grants
- Self-Employed Livelihood Fund:
- GAP Fund:
- Application period: July 21-August 4, 2020
- About the Fund: https://www.goferr.nh.gov/covid-expenditures/new-hampshire-gap-fund
- State of New Hampshire Governor’s Office: https://www.goferr.nh.gov/
- Health – https://www.nh.gov/covid19/
- Business – https://www.nfib.com/new-hampshire/
- NH Department of Revenue – revenue.nh.gov
- Small Business Support – https://www.nheconomy.com/
- NH Small Business Development Center – https://www.nhsbdc.org/covid-19-assistance
- COVID-19 Business Resources – https://businesshelp.nheconomy.com/hc/en-us
- NH Center for Nonprofits – https://www.nhnonprofits.org/page/coronavirus-covid-19-resources-nonprofits
- Employment Security – https://www.nhes.nh.gov/
- NH Department of Business and Economic Affairs – https://www.nheconomy.com/covid19
- Business & Industry Association (NH’s statewide Chamber of Commerce) – https://www.biaofnh.com/
State Resources – Massachusetts
- Unemployment Assistance – https://www.mass.gov/orgs/department-of-unemployment-assistance
- MA Small Business Recovery Loan Fund – https://www.mass.gov/info-details/covid-19-resources-and-guidance-for-businesses#small-business-recovery-loan-fund-
- MA Nonprofit Network – http://massnonprofitnet.org/nonprofit-resources/coronavirus-massachusetts-nonprofits/#philgovt
State Resources – Maine
- Employment Services – https://www.maine.gov/labor/bes/index.shtml
- ME Small Business Development Center Network – https://www.mainesbdc.org/
State Resources – Vermont
- Unemployment Information: https://labor.vermont.gov/StepsForUnemployment
- Vermont Small Business Development Center – https://www.vtsbdc.org/coronavirus/
- SCORE – https://www.score.org/