Governor Newsom announced the State of California will make available $42 million to protect foster youth and families impacted by COVID-19. The foster care system has been heavily impacted by COVID-19 due to school closures and social isolation. Specifically, $27.8 million will be provided to help families stay together; nearly $7 million will support overtime and additional outreach by county social workers to foster family caregivers at higher risk of COVID-19; and $3 million will fund Family Resource Centers and provide direct support and services to foster families. Specific uses of the fund can be seen here; in short, the funds will be used to “[prevent] child abuse and neglect, strengthening children and families, and connecting families to an array of county support systems of care.”

More detail at: https://www.gov.ca.gov/2020/04/13/governor-newsom-announces-42-million-to-protect-foster-youth-and-families-impacted-by-covid-19/

The Franchise Tax Board recently announced a special tax relief for California taxpayers affected by the COVID-19 pandemic. Affected taxpayers are granted an extension where those tax filings and payments due have been extended from April 15, 2020 to July 15, 2020. This extension expands beyond individual returns and includes Corporations, S-Corps, LLCs, Partnerships, and other entity types with returns due during this period.

Those that are “affected taxpayers” need not have been directly impacted or diagnosed with COVID-19. The language is broad enough to where taxpayers who experience any difficulty in filing or paying, as a result of COVID-19, are included in this relief. Even so, relief is not automatic, and all individuals and entities will need to self-identify on their tax returns (as one would with other natural disasters).

For more details, please see the FTB release at: https://www.ftb.ca.gov/about-ftb/newsroom/news-releases/2020-2-more-time-to-file-pay-for-california-taxpayers-affected-by-the-covid-19-pandemic.html?WT.ac=COVID-19.

With Covid-19 creating several payment delays, please remember that Property taxes have not been extended and are due Friday, April 10th. In a joint statement, the California State Association of Counties (CSAC) and the California Association of County Treasurers and Tax Collectors affirmed resilience against mounting pressure to delay taxes, stating that counties need property tax revenue to remain afloat as the COVID-19 pandemic put unprecedented strain on the resources they provide, including healthcare, emergency response and homelessness relief. Counties have the authority to forgo late penalty fees; however, all are imposing their authority differently so this is in no way guaranteed.

Property taxes are collected in two equal installments. The first installment, representing July 1st through December 31st is due on November 1st and delinquent on December 10th. The second installment, representing January 1st through June 30th, is due on March 1st and delinquent on April 10th. Payments must be received (not postmarked) by 5:00 on the delinquent date or will be assessed a 10 percent penalty. The penalties increase substantially if not paid by June 30th of that tax year.

Property taxes in Sacramento can be paid at: https://eproptax.saccounty.net/; and for Placer County at: https://www.placer.ca.gov/1417/Credit-Debit-Cards-or-E-Check.

For more info see: https://www.natlawreview.com/article/what-can-you-do-about-your-california-property-tax-payment-covid-19-s-impact

Executive Order N-44-20 prohibits sellers of any kind from increasing prices on food, consumer goods, medical or emergency supplies, and designated material goods by more than 10 percent. The order also gives additional tools to the California Department of Justice and Attorney General’s Office, among others, to take action against price gougers.

The full order can be read here: https://www.gov.ca.gov/wp-content/uploads/2020/04/4.3.20-EO-N-44-20.pdf

California small businesses can keep up to $50,000 in sales tax receipts for the next year as the COVID-19 outbreak has forced people to stay home and many shops to close. Basically, businesses may defer payment of sales and use taxes of up to $50,000, for up to 12 month without fine or penalty. They will still need to collect it, but they can use it to keep their business afloat during this times of market instability.

For those who don’t know, sales tax is an additional amount of money people pay based on a percentage of the selling price of goods and services that are purchased. For example, if you purchase a new television for $400 and live in an area where the sales tax is 7%, you would pay $28 in sales tax. California’s current sale’s tax is 7.25%.

More details: https://www.gov.ca.gov/2020/04/02/governor-newsom-announces-new-help-for-small-businesses-workers-displaced-by-covid-19/

Following 1.9 million unemployment claims in March alone, California is allocating $50 million for loan guarantees to small businesses to help eliminate barriers to capital for individuals who do not qualify for federal funds, including low wealth and undocumented immigrant communities. This “microlending” program through the California Infrastructure Economic Development Bank, aka the “IBank.” This is to help cover the gap of businesses that cannot receive help through the CARES’ Act’s Paycheck Protection Program. If you are applying for the PPP, your are exempt for applying to this program. Still, other programs may be available. Contact our form for more info or visit SBA.gov.

Applications for California’s new program will open Friday, April 3, 3030, and will be available through the state’s coronavirus portal at https://covid19.ca.gov/.

More details: https://www.gov.ca.gov/2020/04/02/governor-newsom-announces-new-help-for-small-businesses-workers-displaced-by-covid-19/

Yes, things are crazy right now. The failing financial markets, business closures, quarantines and health risks are scary. We know you need an ally. We know that our clients and our community are in need of the services and protection we offer now more than ever. So yes, we are open, and we will remain open for the duration of this crisis and beyond.

Our position as a global service provider makes us uniquely set up to support our local community at this time. We have the technological resources, the experience and the procedures to service clients at a distance. Be it through electronic filing, DocuSign, mobile notaries, remote file management, video/audio conferences or virtual reality meeting space, we have the tools and the expertise to represent your needs during this time of need.

While our physical offices in Sacramento County, San Francisco County, and Placer County are being temporarily scaled down to only essential personnel, our virtual offices have expanded exponentially. For the time being we are temporarily trading our fresh baked cookies for electronic ones. Which, while much less satisfying, are far easier on the waistline. We can accomplish anything remotely that we can do in the office. If you have trusts, wills or estates needs, our attorneys/paralegals can meet with you by phone or video to design, draft and execute said documents. And the same goes for business law, real estate, tax issues, mergers and acquisitions, international planning, employment matters, intellectual property, probate, litigation, and every other area of law we practice. All our services previously available to you remain available to you during this time.

So please do not hesitate to call, e-mail or reach out on social media. Because, yes, we are open and we are here to help

Proving once again that California is a leader in COVID-19 proactivity, the state secured support from major lenders such as Citigroup, JPMorgan Chase, U.S. Bank, Wells Fargo and nearly 200 state-chartered banks and credit unions to potentially allow individuals economically impacted by COVID-19 to receive a 90-day grace period to make mortgage payments. Details vary, but some institutions may allow a reimbursement for payments made. Moreover, the lenders have agreed that this three-month deferral on paying one’s mortgage will not be allowed to negatively impact the borrower’s credit. Of note is that Bank of America has not agreed to the 90-day pledge; however, it has agreed to a 30-day grace period, and is prepared to extend its pause beyond 30 days if necessary.

This should be of great help to those struggling to pay their mortgages; however, careful optimism demands that individuals be wary of this good news.  Individuals who apply will have to adequately prove and document their inability to pay because of COVID-19. Moreover, this appears to be a self-regulated effort, and it is yet to be determined what level of oversight will be available to assure that the forbearance is properly provided.

Full details can be seen at: https://www.gov.ca.gov/2020/03/25/governor-gavin-newsom-announces-major-financial-relief-package-90-day-mortgage-payment-relief-during-covid-19-crisis/

The IRS announced that payments under the CARES Act will begin in mid-April. We furthermore now have answers to several questions our firm has been asked.

Do I need to do anything?
No, these payments will be automatically deposited in your account by the IRS based on information from your last filed tax returns.

What if my information has changed?
In the coming weeks, Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to receiving checks in the mail.

How much will I receive?
If you make $75,000 or less individually, or $150,000 or less jointly with your spouse, you will receive $1,200 individually or $2,400 jointly. You will also receive $500 for each qualifying child.

What if we make more than $150,000?
If your salaries exceed the income threshold, you will be deducted $5 for each $100 above that threshold.

EXAMPLE
If you make $100,000 and your spouse makes $60,000, that is a total income of $160,000, and $10,000 above the income threshold.

That excess income of $10,000 is (i) divided by $100; (ii) multiplied by $5, and (iii) subtracted from your $2,400. So, [$2,400 – {(10,000 / 100) * 5}] = a stimulus package of $1,900.

Therefore, mathematically, if you make $99,000 individually or $198,000 as a married couple, you will not receive a stimulus payment.

For more details, please contact us, or visit the following webpage: www.irs.gov/coronavirus.

The CARES Act allocated $349 billion to the SBA for forgivable loans to Sole Proprietors and Small Businesses under 500 employees. This is the broadest allocation of funds ever provided by the SBA. This means that the Federal Government will cover eight (8) weeks of your rent, utilities, and salary costs for employees under $100k, for free. Moreover, these funds will not be taxable income to your business. Whether you are an Uber Driver or CEO, you should apply for this opportunity. We are contacting lenders now to partner with and assure the application process goes smoothly for all our clients (more detail here).

Applications aren’t expected to be available until Monday, April 6th, 2020; however, this is first-come-first-served disbursement, so clients need to be ready. To begin with, you would need to prepare copies of invoices from March 15th, 2019 to February 15th, 2020 of your:

1. payroll costs (including healthcare) for all employees who made less than $100k;
2. rent for all offices for that time; and
3. your utilities bill from that time.
4. Also, begin to think of how you’ve been affected by COVID-19 (we can assist you with an appropriate narrative).