Neilley & Co. CPA Blog

With all the distressing news going on, I’ve noticed the birds are still singing, the spring peepers are still peeping, the daffodils are still blooming. It’s a refreshing reminder to me that life is not ending. We each individually, and collectively as a country, have been through rough times before, we’ll get through this too.

I encourage you to limit your TV and online time, both news media and social media. We all need to stay informed for sure, but too much of that input tends to create a feedback loop that is not helpful to our state of mind and ability to make well founded decisions in these tumultuous times. I have found Ohio Governor DeWine’s daily 2pm press conferences to provide useful information and encouragement, serious as they are. They seem to be in stark contrast to what I see on a national level where everyone seems to be playing the blame game; I do not find that to be helpful or encouraging, so I for one am trying to keep that input to a bare minimum. There will be plenty of time for criticism and second-guessing later; today let’s focus on what we need to do to get through the next few days and weeks ahead.

Our Office: You have probably heard by now that Ohio will be under a general “stay at home” order starting at 11:59pm tonight (Monday, March 23rd). There is a list of exceptions, and accounting has been included in the list of essential services. We do want to help keep tax refunds moving, so we will continue to remain open and work as best we can. However, please bear in mind things may take longer than usual as we are now also having to spend time to make contingency plans, be sure our entire team is safe, and to help clients who have more time sensitive needs than usual under these circumstances. We are a small office, which is really helpful as we try to limit our exposure risk and maintain physical distance, but if any of our team becomes exposed or has to stay home to help other family members, that will slow things down as well.

Filing Deadline: The federal tax filing deadline has been delayed to July 15th, and we fully expect the Ohio legislature to move back the state deadline as well. So while there is no need to maintain our normal intense tax season pace, we will continue to do our best to serve you. We previously announced we have closed our office to in-person visits; when your tax returns are complete, Dianna will be in touch about delivery options. We have several contingency plans in place, but as conditions change, those plans may change as well, so she will talk with each of you one-on-one as returns are ready.

Stimulus Checks: There seems to be wide-spread support in Washington DC for sending government assistance checks to the American people (but argument about how much or when). As with most government programs however, as the saying goes, “the devil’s in the details.” We’ve had such programs before, and they were not as straight-forward as they sounded; this one will probably be no different. In the past the checks have often been based on criteria from a prior year tax return, then we go through a “true up” on the current year tax return. For example, if you receive a stimulus check based on your marital status, number of dependents or income level from, say, your 2018 return, and are eligible for more based on your actual situation today, you might get an additional credit on your 2020 return. Excess payments aren’t always required to be paid back if your situation changes the other way, but again, we’ll have to see the final details this time around.

Resources: Ohio has been announcing, on an almost daily basis, new steps they are taking at the state level to assist both individuals and businesses through the pandemic. They have started summarizing these at coronavirus.ohio.gov/businesshelp . Even though that address says “businesshelp,” the site provides information for individuals and families too, not just businesses. The site has also been updated with FAQs related to the stay at home order taking effect tonight.

Research: As announcements are made at the federal, state and local levels, please bear in mind that, in general, you’re only going to hear a high level summary from those officials or news media outlets. In some cases that will be all you really need to know, but there are often a lot of details in the “official” order or provision, and you may need to look there for further guidance. For example, we weren’t sure whether we would be considered “essential services” or not, but found the answer in the actual order; I would encourage all businesses to read it carefully to make their own determinations as well.

Payments: Many types of payments are being deferred these days (more specifically, collection activities suspended for non-payment). Some are mandated at the federal level (e.g. student or federally subsidized loans), state level (e.g. health insurance and worker’s comp premiums) or local level (e.g. Columbus City doesn’t want you mailing tax returns to them right now). Several companies are also voluntarily suspending monthly payment requirements, such as mortgages or credit cards; some across the board, some only if you call in and ask.

No matter what type of payment you might need to delay, we recommend contacting your provider or creditor. Especially with local independent companies and landlords, a little communication goes a long way to maintaining a good relationship once the crisis has passed. Remember too, the more we can keep normal payments flowing, the less severe the economic impact of this pandemic will be. There’s a saying, “Please pay me, so I can pay them, so they can pay you.” Please consider maintaining normal payment schedules to the extent you can, so we can keep the economic engine of our communities running as well as possible.

In Closing: Whether you are a wage earner, retiree or business owner, we are here to help you make decisions and plans to get through the current troubles and come out on the other side. We will continue sending updates as we have more information and details we think will help, but feel free to contact us if you have specific questions or we can assist in any other way.

Be safe. Stay healthy, for your own good and for others’ sake. Take time out to breathe deeply and clear your mind. Practice physical distance, but hold family, friends and neighbors close by staying in touch and supporting one another mentally and emotionally… we all need it!

Neilley & Co CPAs

Dear Clients:

These are difficult and historic times! We hope you are safe and well, and stay that way until we get through this. And we will get through it. It’s going to be okay. Different maybe, for awhile perhaps, but okay.

In the meantime, we are here for you! Here are a few quick points we want to be sure you’re aware of right now. We’ll send additional updates if and when we know more.

Contrary to some reports, IRS has not extended the tax filing deadline, but they are granting a 90-day grace period for payments that are due, to July 15th with no interest or penalty. We haven’t heard any official word yet whether the state and cities will follow suit, we’ll keep you posted.

Extensions to file returns are available to October 15th as always. They are approved automatically, but we do have to submit the request, so let us know if that’s what you want us to do.

If you already filed your return and scheduled a payment to IRS to be made by direct debit, as far as we know right now, that will still happen because it’s set up in their system. We will continue to monitor announcements to see if they will automatically defer those payments, and let you know if they do. If they don’t, you can still delay your payment, but please email Dianna for further instructions.

We are continuing to work on taxes and serve other client needs as best we can. For your health and safety however, and ours, we have temporarily closed our office to in-person visits. If you need to get materials to us, you have several options:
· Use the mail slot in the vestibule outside our office, available 24-7.
· Mail, UPS or FedEx; just remember regular mail is not traceable if misdirected, so if it’s important, use the latter two, or overnight postal service delivery.
· Upload electronic copies using the secure link below or on our website.
· Email, but please don’t attach anything with sensitive personal information such as social security or account numbers, birth dates, etc. For cyber-security reasons, we don’t open email attachments without verifying their authenticity; if we don’t in advance it’s coming, we may contact you for confirmation, or use the secure upload link instead.

As we finish tax returns, Dianna will contact you as usual and discuss several possible delivery options. We are still available to review your returns o through your results (or discuss anything else) with you by phone or video conference.

Tax season is always a challenging time for us under the best of circumstances, and the current outbreak has certainly added to that. We have a great team in place dedicated to serving you, and we appreciate your patience if things take longer than usual as we all manage through personal and business issues just as everyone else must. Remember we’re all in this together, and better times are ahead!

Today (March 16th) Governor DeWine is expected to issue an executive order granting the Ohio Department of Job and Family Services (ODJFS) authority to accept and grant requests for unemployment compensation suspending the normal 1-week waiting period.

This order will also give relief to applicants who are not offered paid leave through their job, as well as those who have been quarantined by a medical professional, their employer, or whose employers must temporarily close. Those who apply for unemployment under these circumstances will be exempt from the requirement that they be actively seeking work.

We are here to help you in any way we can, please call or email us with any questions or issues.