Tax Time in the Virus Era

CELINA - Local accountants are conducting business as usual during this extended tax season, though in a slightly different manner.

Due to the COVID-19 pandemic, the deadline to file personal tax returns has been extended to July 15, according to Matt. J. Muhlenkamp, a CPA and financial adviser at Muhlenkamp & Associates, Celina. The extension is for federal, state, school and city taxes.

Extension of the deadlines has not affected business volume, according to Muhlenkamp, and his office has still strived to file returns for their clients as quickly as possible, as if the deadline were still April 15.

However, Muhlenkamp did note an uptick in activity among his small business clientele, as many are applying for loan programs rolled out as part of the Coronavirus Aid, Relief and Economic Security Act.

The CARES Act set aside about $350 billion in aid to small businesses to counter the economic effects of the COVID-19 pandemic, according to Muhlenkamp. Many of the loans are forgivable, essentially making them grants, Muhlenkamp said. The Paycheck Protection Program loan in particular had been driving up activity for accountants and local banks, he continued.

Yet the programs' rollout has been "less than optimal." Typically when such a program is rolled out, Muhlenkamp said accountants and bankers are given a month or two to study it before implementation. This program was rolled out on March 27 and has left them scrambling to quickly learn its details. The Treasury Department is still providing guidance on an almost daily basis, Muhlenkamp said, and accountants and bankers are learning as they go.

His office has also been fielding questions about the stimulus checks being mailed out as another part of the CARES Act. Households who meet certain income thresholds will receive $1,200 per adult and $500 per child as part of the economic relief program, and some Americans have already received the money.

The checks will either be directly deposited into whichever account people used when e-filing their tax returns in 2018 or 2019 or will be mailed to the address the IRS has on file from those tax returns. Seniors or older adults who did not file a tax return in those years but are receiving payments from programs such as Social Security will also receive checks.

Those who have yet to file their tax returns and who may be looking for the help of an accountant can still find it. However, due to social-distancing practices, they may not be able to meet with their accountants face-to-face.

Muhlenkamp & Associates' CPAs have shifted to talking with clients over the phone rather than in person. While the business maintains a drive-thru window where people can drop off forms or pick up information, Muhlenkamp said the office doors have remained locked to the public.

While it's always better to talk with clients in person, Muhlenkamp said businesses had to change to remote appointments due to the current conditions.

"We're trying to practice social distancing, just like other businesses," he said.