June 29, 2020
June 22, 2020
- PPP Loan Forgiveness Application Forms Updated and Streamlined
- Nevada Division of Insurance to Disallow Policy Exclusions Related to COVID-19
- CDI Announces New Order Regarding Workers’ Compensation Premium Savings for CA Businesses Affected by COVID-19
june 15, 2020
june 10, 2020
- Note to the SBA: Debtors in Bankruptcy Are Eligible for PPP Loans
- California Modifies the Tolling of Statutes of Limitations in Civil Cases
june 8, 2020
- CCPA Enforcement Date Fast Approaching Regardless of COVID-19
- Hotels in California May Be Days Away From Reopening: What Hoteliers Need to Know
June 4, 2020
may 29, 2020
may 28, 2020
- House Introduces Pandemic Risk Insurance Act of 2020 in the Wake of COVID-19 Business Interruption Claims
may 27, 2020
- Hoteliers Beware: a Return to Business Post-Pandemic Brings With It Potential Legal Liability
- House Contemplates Revisions to the Paycheck Protection Program
may 15, 2020
may 14, 2020
- U.S. House Democrats Introduce HEROES Act, a New $3T Stimulus Package
- SAFE Banking Act for Cannabis-Related Businesses Included in the HEROES Act
may 12, 2020
may 8, 2020
- Treasury and the SBA Issue Guidance Regarding the Employee Retention Credit
- Businesses Reopen in Los Angeles County as Stage 2 of California’s Statewide Plan Begins
- Update: Large Employers Required to Pay Coronavirus-Related Sick Leave Under New L.A. County Ordinance
may 6, 2020
- SBA Extends PPP Certification Safe Harbor to May 14
- A 2008 Redux: IRS Provides Temporary Cash/Stock Dividend Relief for Publicly Offered REITs and RICs
- EPLI Insurance and Employee Benefits in the Age of the Coronavirus
may 5, 2020
- Update: PPP Guidance Issued by the SBA and U.S. Treasury at Odds With the CARES Act—Michelman & Robinson Files First-of-Its-Kind Lawsuit Challenging FAQs
- NAIC Issues Business Interruption Data Call in the Wake of COVID-19
may 4, 2020
- PPP Guidance Issued by the SBA and U.S. Treasury at Odds With the CARES Act—Michelman & Robinson Files First-of-Its-Kind Lawsuit Challenging FAQs
may 1, 2020
april 29, 2020
- Planning for Your Employees' Return to the Workplace
- Los Angeles Hospitality Workers Among Those Thrown a Potential Lifeline
april 24, 2020
- Attention Cannabis Businesses: Hope May Be on the Horizon for Federal COVID-19-Related Relief
- California Department of Insurance Issues Notice Granting Tax-Filing Extension in Response to COVID-19
- SEC Approves Amendments to Nasdaq and NYSE Continued Listing Requirements Due to the COVID-19 Pandemic
April 23, 2020
april 21, 2020
- Additional Funding Is on the Way to Resurrect the PPP
- Certifying Your PPP Loan: Proceed With Caution
april 17, 2020
april 16, 2020
- Employment in the Wake of Coronavirus: EEOC and OSHA Guidance Allows Employers to Go Where They Could Not Go Before
- New Yorkers Ordered to Stay at Home Even Longer Amid the COVID-19 Crisis
- Paycheck Protection Program Funds Exhausted
april 15, 2020
- Attention Insurers: the CDI Has Ordered You to Fairly Investigate All Business Interruption Insurance Claims Caused By the COVID-19 Outbreak
April 14, 2020
- Insurance Companies Have Been Ordered to Provide COVID-19-Related Premium Relief to Businesses and Drivers in California
- What to Do If Your New York Business Has Been Deemed Non-Essential
APRIL 13, 2020
- IP Deadlines and Fees Extended Under the CARES Act
- Employment in the Wake of Coronavirus: Reintegrating Your Workforce in the New Normal
APRIL 10, 2020
- You Successfully Applied for and Received a PPP Loan Under the CARES Act: Now What?
- Safer at Home Order in L.A. Extended to May 15
- Maintaining Your Trade Secrets During the Coronavirus Crisis
APRIL 9, 2020
april 8, 2020
- Congress Looks to Bolster the PPP With Another $250B in Funding
- U.S. Treasury Provides Further Guidance to PPP Borrowers and Lenders
- L.A. Mayor Amends COVID-19-Related Paid Sick Leave Ordinance
april 7, 2020
- Clarifying the Paycheck Protection Program: Payment of Insurance Premiums and Loan Forgiveness under the CARES Act
April 3, 2020
april 2, 2020
april 1, 2020
March 31, 2020
march 30, 2020
- Large Employers Required to Pay Coronavirus-Related Sick Leave Under New L.A. Ordinance
- Insurance Coverage Potentially Triggered by COVID-19
- Attention Insurers: CDI Orders Mandatory Call for Business Interruption Coverage Information in the Wake of COVID-19
- DOL Is Requiring Employers to Post Families First Employee Rights Notice
March 27, 2020
- A Comprehensive Guide to Understanding Coronavirus-Related State Assistance Programs: Who is Giving What to Whom (Part II)
- IRS Releases “People First Initiative” Temporarily Adjusting and Suspending Key Compliance Actions
- HHS Relaxing Enforcement of HIPAA to Facilitate Sharing of Information During the COVID-19 Crisis
March 26, 2020
march 25, 2020
march 24, 2020
- Navigating the Coronavirus Pandemic: a Critical Business Review Checklist
- SBA Loans for Companies Impacted by Coronavirus
- SEC Relaxes Federal Proxy Rules for Annual Meetings
march 23, 2020
- Federal Reserve Responds Boldly to Coronavirus-Related Economic Downturn
- The Number of Jurisdictions Implementing Stay-at-Home Orders Is Increasing Exponentially
- Michelman & Robinson’s Guide to Coronavirus-Related Paid Sick Leave and Unemployment Insurance Laws in the Tri-State Area
MARCH 21, 2020
- New Jersey Orders Its Residents to Stay Home
- “Essential Businesses”— What if I am Stopped?
- The IRS and States Provide Tax Relief in the Wake of the Coronavirus Pandemic
MARCH 20, 2020
- New York Governor’s PAUSE Order
- Illinois Governor’s Statewide Stay-at-Home Order
- Force Majeure Clauses in Commercial Real Estate Contracts
MARCH 19, 2020
- SEC Provides Regulatory Relief for Public Reporting Companies
- Student Loan Borrowers Can Breathe a Sigh of Relief, At Least Temporarily
- California Governor's Statewide Stay-At-Home Order
MARCH 18, 2020
- "Shelter in Place" Orders
- Telecommuting in the Age of Coronavirus
- Families First Coronavirus Response Act Just Passed by the Senate and Signed Into Law by the President
MARCH 17, 2020
- M&R Coronavirus Risk Mitigation Team: A Multi-Disciplinary Legal Team Ready To Immediately Address A Host Of Coronavirus-Related Issues for Businesses, Quickly And Holistically
MARCH 16, 2020
MARCH 5, 2020
California Department of Insurance Issues Notice Granting Tax-Filing Extension in Response to COVID-19
In response to the COVID-19 pandemic, the California Department of Insurance has issued a notice granting a tax-filing extension to insurers and surplus lines brokers meeting certain requirements. Michelman & Robinson explains the extent of the relief and how carriers should go about obtaining it.
Q. What is the scope of the CDI’s tax-filing extension?
A. Pursuant to an emergency order, Commissioner Ricardo Lara has granted a three-month extension to file premium tax returns and pay required premium taxes. This extension is automatic and reserved for any insurer or surplus lines broker that files a premium tax return requiring the payment of less than $1M in premium tax based on the 2019 annual tax liability. In addition, the CDI is providing automatic relief from any penalty or interest that would otherwise apply to an insurer or surplus lines broker that qualifies for the extension.
Q. What is the effective date of the automatic extension and how long will it last?
A. The automatic extension is retroactive to March 30, 2020, and remains in effect for any premium tax return or premium tax payment of less than $1M due on or before July 31, 2020.
Q. For carriers that qualify for the automatic extension, what are the new due dates?
A. The new insurance company due dates are as follows:
- 2019 Annual Tax, 2019 Retaliatory Tax, and 2020 first quarter payment—originally due on April 1, 2020—are now due on July 1, 2020
- 2020 second quarter payment—originally due on June 1, 2020—is now due on September 1, 2020
- 2019 Annual Tax (Ocean Marine Insurance Tax)—originally due on June 15, 2020—is now due on September 15, 2020
Q. For surplus line brokers that qualify for the automatic extension, what are the new due dates?
A. The new surplus line broker due dates are as follows:
- Payment for business transacted during the month of December 2019 and 2019 Annual Tax—originally due on March 1, 2020—is now due on June 1, 2020
- Payments for business transacted during the months of January, February, March, and April 2020—originally due on April 1, May 1, June 1, and July 1, 2020, respectively—are now due on July 1, August 1, September 1, and October 1, 2020, respectively.
Q. What if I am an insurer or surplus lines broker that does not qualify for the automatic relief, can I still file for an extension?
A. Yes, an insurer or surplus lines broker that does not qualify for the CDI’s automatic extension, but is nevertheless unable to meet applicable deadlines, may request an extension to file its premium tax return and pay required minimum taxes, so long as the request is filed before the applicable filing deadline.
Q. If I file such a request for an extension, how will I know if I received it?
A. The CDI will handle individual requests for extension on a case-by-case basis and directly notify each taxpayer as to whether its request has been approved or denied. Carriers and surplus lines brokers should send their extension requests as follows:
- By email to the Department of Insurance Premium Tax Audit Unit at email@example.com
- Or by mail to California Department of Insurance, Premium Tax Audit Unit, 300 South Spring Street, 9th Floor, Los Angeles, CA 90013
Q. What authority does the CDI have to grant tax-filing extension?
A. By way of an executive order signed on March 30, 2020, California Governor Gavin Newsom granted authority to the California Department of Tax and Fee Administration to extend the time for filing tax returns and payment of taxes that it oversees for a period of up to three months after the due date of the tax return or payment of any required taxes of less than $1M. It is this executive order that allows the CDI to provide its current tax relief.
Q. Is there anything else insurers and surplus lines brokers should know about the CDI’s notice?
A. Yes, the CDI reminds taxpayers that if an extension is not granted automatically, or if an individual extension request is not approved in writing, late tax payments are subject to penalties and/or interest.
We are working diligently to keep our clients up to date on coronavirus-related developments. Nevertheless, these developments are changing daily and, in some cases even hourly, so it is important that you make sure you are dealing with the most current information. That being said, this alert is not offered, and should not be relied on, as legal advice. You should consult an attorney for guidance and counsel regarding any specific concern or situation.