We would first like to extend our heartfelt wishes that you and your families are as well as can be expected in these times.

To our clients and friends —

Our hearts especially go out to anyone directly impacted by the virus and all healthcare professionals who are battling on the front lines.

At Werner & Co CPAs we are doing our part to help “flatten the curve” and are looking out for our employees and the general well-being of our nation. We are assessing the situation daily, remaining vigilant, and following all recommendations from the World Health Organization (WHO), U.S. Centers for Disease Control and Prevention (CDC), and local authorities.

On Tuesday March 17, 2020, Treasury Secretary Steven Mnuchin announced taxpayers and businesses will have until July 15, 2020 to pay any unpaid 2019 taxes. All estimated taxes for first quarter 2020 are also delayed until July 15, 2020. All individual U.S taxpayers and businesses qualify for this extension to pay.

What does this mean for you and your tax return – Tax Day remains at April 15^th, 2020. To serve you and make sure we continue to deliver the quality, excellence and timeliness you expect from us. If you have a balance due, we will file for an extension by April 15, 2020. You will then have until 7/15/2020 to make your tax payment. If you are due a refund, we are working vigorously on completing your tax return by the 4/15 deadline. This extension to pay does not impact refunds, refunds are still being paid.

If you are receiving this message and your return has been completed with a balance due, you need not send the payment until 7/15/2020. Nothing needs to be changed on the return or the voucher you have in hand. Simply write the check and mail it by July 15.

If you have specific questions, please feel free to call or email our office. This environment is changing quickly. Next up will be the stimulus package being discussed in the Senate. That will look to provide employers and taxpayers with aid in the form of SBA financing, payroll tax reductions, and direct stimulus payments among other things.

We thank you for your patience and continued trust while we adapt to this everchanging landscape. This pandemic will challenge us all but working together I know we will be successful in navigating this crisis.

We will keep you apprised as things change, in the interim please stay safe.

— Kris DePaolo, CEO

Here are important links regarding the impact of coronavirus:

PICPA Information
https://www.picpa.org/attend-cpe-events/coronavirus-updates-resources

Unemployment Questions
https://www.uc.pa.gov/COVID-19/Pages/Employer-COVID19-FAQs.aspx

AICPA Information
https://www.aicpa.org/content/aicpa/news/aicpa-coronavirus-resource-center.html

What do we know now?

Treasury Secretary Mnuchin announced a 90-day extension on tax payments due April 15^th, 2020. The deferral allows taxpayers to pay any tax due on 4/15 without penalty or interest until 7/15/2020 – up to $1 million for an individual and $10 million for a corporation.

What do you as a taxpayer need to do?

Nothing, as Secretary Mnuchin announced “all you have to do is file your taxes. You’ll automatically not get charged interest and penalties.” If your return has already been filed and the balance not paid – you can plan on making payment July 15^th without penalty or interest.

What has NOT happened?

The announcement did not change the April 15^th filing due date. Only the payments were delayed to July 15, 2020. Many professionals expect the filing deadline to be changed but that has not yet been confirmed. There was also no mention of first quarter estimated tax payments being delayed. These payments are typically due on 4/15.

The stimulus bill is still sitting with the Senate, no passage had taken place as of 9am on March 18, 2020.

So, we wait for further clarity in this rapidly changing environment. In the interim, stay safe and look out for one another.  

Questions or concerns, contact us at info@wernercpa.net or 610.770.9236.

The Internal Revenue Service issued optional standard mileage rates used to calculate the deductible costs of operating automobiles, vans and trucks for business, charitable, medical or moving purposes.  The 2014 rates for business, medical and moving are down 0.5 cent per mile.

A taxpayer may not use the standard mileage rate for a vehicle after using the Modified Accelerated Cost Recovery System (MACRS) depreciation method or after claiming Section 179 deduction on that vehicle.  In addition, the business standard mileage rate may not be used for any vehicle used for hire or for more than four vehicles used simultaneously.

Taxpayers always have the option of calculating the actual costs of using their vehicles rather than using the standard mileage rate.   Actual costs would include gasoline, oil, repairs, insurance, maintenance and depreciation of the purchase cost.   Use of the standard mileage rate in the first year of business use is considered an election to exclude the vehicle from MACRS depreciation.

We recommend that you keep a daily log of the travel and expenses for each of your automobiles to document such income tax deductions.   The IRS tax forms ask if you have written records of your mileage and if you’re ever audited you can be sure the IRS examiners will ask the same.  If you would like more details and advise, please call us 610.770.9236 or send us a message info@wernercpa.net.

Are you still doing your taxes on paper? If so, join the 122 million taxpayers who e-filed last year. It’s fast, it’s easy and it’s free.

Here are five great reasons why you should e-file your tax return:

• Accurate and complete. E-file is the best way to file an accurate and complete tax return.The tax software does the math for you, and it helps you avoid mistakes.
• Safe and secure. IRS e-file meets strict guidelines and uses the best encryption technology. The IRS has safely and securely processed more than 1.2 billion e-filed individual tax returns since the program began.
• Faster refunds. E-filing usually brings a faster refund because there is nothing to mail and your return is less likely to have errors, which take longer to process. The IRS issues most refunds in less than 21 days. The fastest way to get your refund is to combine e-file with direct deposit into your bank account.
• Payment options. If you owe taxes, you can e-file early and set an automatic payment date anytime on or before the April 15 due date. You can pay by check or money order, or by debit or credit card. You can also transfer funds electronically from your bank account.
• E-file’s easy. You can also use commercial tax software or have us e-file your return. We have been e-filing tax returns since 2006. We would be happy to sit down with you and discuss your tax circumstances and help save where possible.

TAX ADVICE DISCLAIMER: In accordance with IRS Circular 230, any tax advice included in this communication, including attachments, is not intended or written to be used, and cannot be used by you or any other person or entity, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions, nor may any such advice be used to promote, market or recommend to another party any transaction or matter addressed within this communication. If you would like such advice, please contact us.