Coronavirus & tax update for Calhoun, Thomson + Matza, LLP

This is the email we sent out to clients yesterday. Yes, we’ve gone to working from home during the COVID-19 outbreak, and yes, we’re still open for business – just in a different setting.

COVID-19 When working from home is the new "Out of Office"
COVID-19 When working from home is the new “Out of Office”

Dear clients and friends,

Given the COVID-19 pandemic and its ongoing impact, Calhoun, Thomson + Matza, LLP is taking precautions necessary to help our employees and their families stay healthy and safe.

As the COVID-19 situations escalates and our opportunity to “flatten the curve” is now, we have made the decision to temporarily have staff work from home for the foreseeable future. Our IT environment enables our team members to work from remote locations and we remain available to you as always. We plan to have team members periodically in our office but this could change as the situation changes.

We are working to limit the number of people in our office. As such, we encourage all CTM clients to submit documents electronically through our secure portal. We ask this not only to reduce the number of people in our offices but also out of concern that mail or attempted deliveries may be delayed for reasons beyond our control. If you need to drop off documents to us or assistance in accessing your portal, please coordinate with your CTM team members.

Important update for our tax clients:

The next major federal income tax deadline is April 15, 2020. This deadline includes individual tax returns (Form 1040), corporate tax returns (Forms 1120, 1120-PC, 1120-L, etc), and estimated tax payments for the first quarter of 2020.

Earlier today, Tuesday, March 17, 2020, Treasury Secretary Mnuchin announced that the Treasury and IRS will grant payment relief for 90 days with no payment penalties or interest if the taxpayer is:

  • An individual who owes less than $1 million, or
  • A corporation that owes less than $10 million.

This announcement did not include a delay in the deadline for filing the tax returns. Therefore, all tax returns that are normally due on April 15, 2020, are still due on that date.

The key takeaway from this is that we need to move forward with tax return filings, as taxpayers could be subject to penalties if they do not file by April 15, 2020.

There are still many things up in the air right now. For example, at this time, we are unsure how 2020 estimated taxes will be handled. For advice on your specific circumstances, contact your CTM team members. In the mean-time, we continue to work to meet these filing deadlines for our clients.

In closing, safety and good health are of concern to all of us, and on behalf of the entire team at CTM, we thank you for your support and understanding. We will continue to monitor the COVID-19 situation closely and update you as needed.

Wishing good health to you, your families and your teams,

The Calhoun, Thomson + Matza, LLP team