As mentioned yesterday, Corrigan Krause is closely monitoring the Coronavirus pandemic and continually discussing our plan of action.
Over the past few days, we've received many calls and emails from concerned clients. As we continue to gather and receive information, we are doing our best to provide resources and communicate recommendations to our clients and partners.
Announced earlier today, US Secretary of the Treasury Steven Mnuchin had a press conference with President Trump and outlined the following as it relates to filing and the April 15
- They encourage taxpayers to file by April 15th if possible as most taxpayers will have refunds.
- For individuals who owe up to $1,000,000 of tax, they can defer payment up to 90 days, interest and penalty free.
- For corporations who owe up to $10,000,000 of tax, they can defer payment up to 90 days, interest and penalty free.
Additionally, they are working on a stimulus package to get American workers something (he referenced a payment) in the next two weeks. We will continue to update you on this as we learn more.
We’ve also created the below list of recommendations and resources for businesses and business owners impacted by the current COVID-19 situation:
- Small Business Administration (SBA) - The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). Ohio is not yet a designated state but Governor DeWine has been working with state officials to finalize the required applications. Although this is administered directly through the SBA, we recommend you notify your bank prior to submitting an application with the SBA. You can apply online for all types of SBA disaster assistance loans. For more information regarding Disaster Loans, click here.
- Ohio Department of Jobs and Family Services: Unemployment Claims - As a business, if you have been directly impacted by Coronavirus or the business has slowed down or closed because of the Coronavirus, your employees can apply for Unemployment Compensation. An executive order issued by Governor DeWine expands flexibility for Ohioans to receive unemployment benefits during Ohio's emergency declaration period. Unemployment benefits will be available for eligible individuals who are requested by a medical professional, local health authority, or employer to be isolated or quarantined as a consequence of COVID-19, even if they are not actually diagnosed with COVID-19. In addition, the waiting period for eligible Ohioans to receive unemployment benefits will be waived. For more information regarding Coronavirus and Unemployment Insurance Benefits, click here.
- Bank Communications and Requests - We strongly recommend that you reach out to your banker for guidance on this situation or to request assistance. Be sure to ask about delaying payments, deferring interest, extending your lines of credit, reducing borrowing-base calculations or obtaining additional financing. Also, this may be a good time to request relief with your bank covenants, especially any required year-end reporting.
- Vendor Communications - Be sure to communicate to all vendors, including landlords, equipment lessors, utilities, etc., to request an extension for any invoices due by 60-90 days from their original due date.
- Cash Flows - Review your current situation and prepare a cash flow analysis for the next 90 days with the consideration that customers may be unable to pay their invoices due to your business and overall business will slow down. Review expenses that you can reduce or delay to preserve cash and line of credit availability.
- Insurance Coverage - Check with your insurance company for any available claims, as well as to see if they will extend premium payments or adjust premiums for loss of business.
We are working hard to ensure that we can continue to advise and serve our clients the best that we can. As we continue to receive information, we promise to provide you with additional updates and continued advice. Again, our top priority is the health and safety of our team, our clients and our extended partner network.
As always, please do not hesitate to reach out to me with questions or concerns at
Thomas L. Harrison, CPA, CEPA
President and CEO