On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The Act includes various provisions designed to provide an economic stimulus to both individuals and businesses. The intention of the new legislation is to increase cash flow and liquidity and to reduce the cost of capital.
The various provisions of the Act will accomplish those goals and assist in the long-term recovery of our economy:
- Stimulus checks for Americans
- Paycheck Protection Program (“PPP”)
- Deferment of payroll tax payments for employers
- Employee Retention Credit
- Changes to the Economic Injury Disaster Loan (“EIDL”) Program
- Various other tax provisions aimed at economic recovery such as the expanded use of Net Operating Losses and an increased deduction for business interest expense
The application to individuals and businesses varies depending upon each person’s specific circumstances. Some of the provisions prohibit the participation in various other programs or limit the availability of credits, etc. We are monitoring information coming from various sources and learning as much as we can about the Act so that we may assist you. Final regulations are set to be issued Friday, April 3rd which will provide additional clarification. Please call or email us with your questions or concerns about how this will affect you. At JSA, we stand ready to help our clients get through this unprecedented situation.
As a result of the increase in coronavirus cases in Arkansas and to keep our staff healthy, we are now all working remotely. We are all available via email or phone. We will continue to provide the same excellent service you are used to. All information, including tax returns, will be delivered electronically and tax information will be mailed to you using the US Postal Service. For those who do not use e-mail, your information will be mailed to you.
Our hearts are heavy for those of you who have been impacted by the coronavirus. We continue to pray for all of you. Please stay safe and healthy during this time!