Financial Resources Related to the COVID-19
The AAO is compiling information from a variety of sources to help members develop strategies for managing financial disruptions caused by the coronavirus. Additional resources will be added as they become available.
Treasury Secretary Says Individuals Can Defer Up To $1M In IRS Tax Payments Amid Coronavirus Outbreak
Business Insider (3/18, Loudenback) reports that U.S. Treasury Secretary Steven Mnuchin announced that individuals who owe taxes for 2019 can defer their payments for 90 days, interest and penalty free, up to $1 million. To take advantage of the payment deferment, you must still file your taxes by the regular April 15 deadline. Those expecting tax refunds should also file by April 15 as usual.
“If you owe a payment to the IRS, you can defer up to $1 million as an individual — and the reason we are doing $1 million is because that covers pass-throughs and small businesses — and $10 million for corporations, interest-free and penalty-free for 90 days. All you have to do is file your taxes,” Mnuchin said during a White House briefing.
IRS releases guidance on deferring tax payments due to coronavirus: Learn more
Income Tax Filing Deadline Will Now Be July 15 (Same as the Payment Deadline)
Bloomberg News (March 20) reports Treasury Secretary Steven Mnuchin announced that at President Trumps direction, the income tax filing deadline will be pushed back to July 15 from April 15.
“We are moving Tax Day from April 15 to July 15,” said Mnuchin. “All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.”
State Tax Filing Relief
States are providing tax filing relief for individuals and businesses. Check out the latest developments provided by the AICPA.
Cain Watters Offers Guidance on Cash Flow and Staffing
CWA Blog (3/16). An advisory post, “Managing Cash Flow, Staffing during COVID-19,” lists recommendations for maintaining or increasing a practice’s cash flow if needed.
CWA Blog (3/17). An additional post, “Options Available if You Make the Decision to Close or Limit Hours and Staff” provides direction on furloughing staff and working with state unemployment agencies. Additional options discussed include allowing staff to use accrued sick leave/vacation time and continuing full pay.
SBA To Provide Low-Interest Loans to Small Businesses Affected By Coronavirus
ADA News (3/17, Garvin) reports the U.S. Small Business Administration (SBA) announced March 12 that “it will work directly with state governors to provide low-interest loans to small businesses and nonprofits that have been severely impacted by the coronavirus crisis.” To aid businesses in government-declared disaster areas that are experiencing temporary loss of revenue, loans of up to $2 million will be made under the SBA’s Economic Injury Disaster Loan Program. To see if your state or county is eligible for COVID-19 loans, visit the Current Declared Disaster page. If you are eligible to apply, visit DisasterLoan. SBA.gov. For questions, contact the SBA disaster assistance customer service center at 1-800-659-2955 or by email at firstname.lastname@example.org.
SoFi Encourages Inquiries about Loan Payment Forbearance Options
SoFi (Social Finance, Inc., 3/18). SoFi, the AAO endorsed student loan consolidation discount program for members, shared the following message:
“AAO members, we understand that you may have questions at this point related to your student loans. The federal government has made some recent announcements about interest payments and the impact of COVID-19.
“Those members that have leveraged SoFi’s student loan refinancing program endorsed by the AAO should reach out to SoFi directly with any questions they might have. If you are experiencing difficulty making your payments due to the Coronavirus situation, please contact us to discuss your forbearance options available to temporarily postpone your monthly payment. If you are directly impacted by Coronavirus or you are experiencing interruption, reduction or loss of pay due to the National Emergency, we can help you.
“Amid evolving news and uncertainty surrounding COVID-19, your financial needs are our priority. Please contact us at email@example.com or chat with us at SoFi.com. We are also available via phone at 1-855-456-7634.”
Facebook to Award Grants to Businesses Affected by the Coronavirus
Facebook for Business, (3/18). Facebook announced its Small Business Grants Program will offer $100 million in cash grants and ad credits to help address financial disruption caused by the coronavirus. Funds will be available to help cover rent and workforce and operational expenses. The application process is currently in development. Interested business owners are invited to sign up to receive information when it becomes available.
Statement on COVID-19 Virus from AAOIC
We know some AAO members will want to know if they have coverage under their AAOIC Professional Liability Insurance policy for the allegation of transmission of the COVID-19 virus in their orthodontic office(s) . The answer is that there may be coverage depending on the facts and circumstances of any claim. There also may be coverage under your general liability policy. In the event of a claim, be sure to report it promptly to both AAOIC and your general liability carrier. Generally, it will be difficult for an individual to prove where they acquired the virus now that there is community transmission of the disease. However, AAOIC recommends limiting your practice, for as long as practical, to emergency care only, while using enhanced universal precautions. You should also be available to patients by telephone and electronic media to help resolve problems remotely whenever possible.
From Good to Great in a Tough Economy
Utilize this PCSO webinar as a resource during difficult financial times.