TAX RELIEF & STIMULUS: CARES ACT 1 Roger A Jones, CPA Founding - PDF document

4/10/2020 TAX RELIEF & STIMULUS: CARES ACT 1 Roger A Jones, CPA Founding Partner Roger is one of the founding partners of Hauser Jones & Sas and emphasizes strategy, business owner succession, mergers and acquisitions, complex audits, and transactional tax strategies. Roger is instrumental in providing the firms Business Owner Succession Services and leads the firm’s small business outreach efforts. Roger is a member of the AICPA, the WSCPA and a member of the Institute of Internal Auditors. A Puget Sound native, Roger graduated from the University of Washington with a Bachelor’s degree in Accounting. He is married and the father of six kids, the youngest of 7 siblings and enjoys nine grandkids. 2 1

4/10/2020 Jennifer Roberts, CPA Senior Tax Manager Jennifer joined Hauser, Jones & Sas in 2017. She has more than 20 years of experience in the financial industry. Her favorite part of being a CPA is the ability to work directly with people and their businesses; helping with their tax planning and consulting needs. Jennifer leverages her prior experience as an IRS auditor by representing her clients throughout the entire IRS audit process, allowing her to help resolve numerous issues. She has also worked with several attorneys to assist with specialized accounting projects required to help resolve legal cases involving partnerships, estates and trusts. Jennifer lives in her hometown in Kirkland, WA. She graduated from the University of Washington with a Bachelor’s degree in Accounting. 3 Heather Martin, CPA Tax Manager Heather joined the team in December 2018, after 19 years with a CPA firm in Seattle and five years with a national accounting firm. Heather has expertise in providing tax and advisory services to high-worth individuals and small businesses, as well as assisting with trusts and estates. She believes in learning a client’s story and building a solid relationship to best understand and meet their needs. Heather enjoys being a trusted advisor to her clients. Heather graduated from the University of Washington with a Bachelor’s degree in Accounting and is a member of the WSCPA . She is married, the mother of 2 college kids, and enjoys time with her family, as well as outdoor recreation, dancing and gardening. 4 2

4/10/2020 Anne Smith, EA Client Accounting Services Manager Anne joined the team in 2015 and has worked in the tax and accounting industry for 25 years. She has worked in both public and private accounting, assisting local business with their accounting, procedures, planning and reporting. Anne is experienced in day to day accounting, payroll, state agency filings, state agency audits, business and personal tax reporting. She has a wide range of experience assisting local businesses to develop accounting systems and procedures, and consulting businesses throughout all phases from business start-ups to planning for the sale of closely held businesses. Anne is an IRS Enrolled Agent and a member of Washington Society of Certified Public Accountants Anne graduated from University of Phoenix with a Master’s Degree in Business and Accounting. Anne lives with her husband and dogs and enjoys remodeling her home and training agility. 5 Jiyon Han, CPA Senior Tax Manager Jiyon received her BA from Yonsei University in Korea before relocating to Seattle. Her practice encompasses tax and consulting services for various types of business entities as well as high net worth individuals. She represents and supports clients during IRS examinations. Since starting her career in 2000, she has built a portfolio of clients in a wide range of industries including professional service, construction, real estate investment, restaurant and manufacturing. Jiyon lives with her husband and two children in Sammamish and enjoys watching pro sports in addition to her children’s games. 6 3

4/10/2020 ABOUT HAUSER JONES AND SAS, PLLC Team of 27 FTE with 2 offices [Bellevue & Puyallup] We Serve Individuals, Small Business, and Not-for-Profits Serving Clients primarily in WA, OR, AK, ID  Ownership succession services  Tax Compliance  Tax Strategy [Planning]  Audits & Reviews  Consulting & Forecasting  Internal Audit & Compliance  Client Acctg. Services (CAS)  Strategic Planning  Executive Services 7 2020 CARES Act - $2 Trillion Where Does the Money Go? Direct Aid Business Loans Tax Provisions $260 B $50 B Economic Stabilization $292 B Recovery Rebate Unemployment Insurance (Loans & Industry Relief) $10 B Retirement & Charitable $150 B $25 B Passenger Airlines State Aid $276 B Business Tax Breaks $4 B Air Cargo Carriers $32 B Grants to Air Carriers & $170 B Loss Limitations Workers $17 B National Security Businesses $55 B ER Retention Credit $350 B Supplemental Including $377 B Small Business Loan $26 B NOL Provisions $150 B Heath Care Funding Forgiveness Grants & Other Grants $13 B Business Interest Deductions $12 B Defer ER Payroll Tax 8 4

4/10/2020 Today’s Agenda on the CARES Act • Introductions • Tax Relief Provisions for Individual Taxpayers • Tax Relief for Corporate Taxpayers, Partnerships & other Business Entities • Tax Credits and Deferrals – Payroll Related • Family First Corona Virus Response Act • SBA Small Business Lending Programs 9 Tax Relief for Individuals • Filing and Payment Deadline Moved to 7/15/2020 • Cash Stimulus Payments • Retirement Plan Provisions [(401K) Plans etc.] • Above the Line Charitable Contribution Deduction • Student Loan Payment Deferral • Pandemic Unemployment Assistance 10 5

4/10/2020 Tax Relief for Individuals • Deadline to FILE and PAY 2019 federal income taxes moved to July 15, 2020 2020 Estimated payments - 1 st and 2 nd Quarter deadline moved to July 15, 2020 • • IRS continues to process and pay refunds 11 Tax Relief for Individuals - Cash Stimulus Payments Cash Stimulus Payments – Maximum Benefit = • $1,200 for single and HOH taxpayers (up to $75,000 and $112,500 AGI), • $2,400 for MFJ taxpayers (up to $150,000 AGI) BONUS : an additional $500 per dependent under 17!!! Note: Phase-outs apply for income levels over AGI threshold The benefit phases out at a rate of $5 for every additional $100 in income Not eligible if Nonresident alien, o Claimed as dependent on another return, o Estate/trust o No valid SSN o 12 6

4/10/2020 Tax Relief for Individuals - Cash Stimulus Payments • Reduced payment or not eligible if you make too much $$ Single Taxpayer = Phase out over $75,000 - $99,000 AGI max o MFJ Taxpayer = $150,000 - $198,000 AGI max o HOH = $112,500 - $136,500 AGI max. o Notes: Stimulus payment is an advance of a 2020 tax credit It may be adjusted based on 2020 federal income tax return data Based on 2018 tax-returns [unless 2019 is already filed] Stimulus payment will be direct deposited for those that used this feature for 2018 or 2019 returns Automatic payments begin next week , followed by letter from IRS 13 Tax Relief for Individuals - Cash Stimulus Payments Coming next week: Get My Payment shows o Economic Impact Payment date Provide bank info to help with o direct deposit https://www.irs.gov/coronavirus/economi c-impact-payments 14 7

4/10/2020 Tax Relief for Individuals – Retirement Plans • Retirement Plan “Early Distributions”: o Temporary waiver of the 10% penalty on early distributions up to $100,000 [If coronavirus related]. o Must Still Pay TAX on distributions!! [3-year payment window] + 3 yrs. to recontribute. o Eligibility: Anyone Who Takes an Early Distribution and:  Has a positive diagnosis (self, spouse, dependent) or  Has adverse financial consequences from quarantine due to:  business closure,  layoff or reduced hours. Note : o The “penalty waiver period ” ends in 180 days (about 170 days left to take an early distribution) 15 Tax Relief for Individuals – Retirement Plans • Retirement Plan - Required Minimum Distributions o Temporarily waives the required minimum distributions for 2020 (including beneficiaries). • Retirement Plan - Loans o Max loan amount is increased from $50,000 to $100,000 for the 180-day period beginning after Act enactment 16 8

4/10/2020 Tax Relief for Individuals – Other Cool Benefits! • Charitable Contribution - Be Generous with your Stimulus Checks!! o $300 charitable contribution ”above the line” even if you do not itemize. o No AGI limitation for total charitable contributions 2020. • Student Loans o Federal student loan payments are deferred for six months [without penalty]. o Employers Can Pay Employee’s Student Loan Debt  Tax Free Benefit to employee up to $5,250/Year [$7,000 tax equivalent]  From enactment to 1/1/2021 17 Tax Relief for Individuals – Other Cool Benefits! • Unemployment Assistance is Expanded : o Provides unemployment to self-employed workers & independent contractors [i.e. not employees] o Allows payments up to $600 per week for up to four months o Extends the duration for benefits by another 13 weeks 18 9