Posting Date July 27, 2020
Many of our business clients have reached the end of your PPP covered period or are nearing it and are eagerly looking forward to getting your forgiveness applications submitted. Unfortunately, lenders are not taking applications yet and will be notifying you once they are. This is because there is active legislation in Congress that would make, yet again, large changes to the forgiveness process. Therefore, the US Treasury has not issued final guidance to the lenders regarding how to process forgiveness applications and it is our understanding the SBA has not opened the processing software the lenders must use to submit the applications either.
CPA firms are being advised by our professional associations to hold off working on any forgiveness applications until the current legislation is resolved. There is no point in preparing applications if the rules are just going to change again. Plus, there is talk of establishing a dollar amount where there would be automatic forgiveness in which case preparing the complicated and time-consuming application would potentially be unnecessary all together.
Hopefully, a Senate bill will be unveiled this week giving everyone a little more clarification about the direction this is going to take. The current information we are seeing is that Congress is going to try and finalize this package before the August 8th recess.
Posting Date June 17, 2020
There have been quite a few changes recently that we want to make sure you are aware of.
Posting Date April 15, 2020
The IRS has launched the Get My Payment tool on their website, www.irs.gov. This tool lets taxpayers check on the status of their Economic Impact Payment (stimulus check) and update their direct deposit information.
Here is what the IRS says about how to use this tool:
Available only on IRS.gov, the online application is safe and secure to use. Taxpayers only need a few pieces of information to quickly obtain the status of their payment and, where needed, provide their bank account information. Having a copy of their most recent tax return can help speed the process.
Get My Payment cannot update bank account information after an Economic Impact Payment has been scheduled for delivery. To help protect against potential fraud, the tool also does not allow people to change bank account information already on file with the IRS.
General information about the Economic Impact Payments is available on a special section of IRS.gov: https://www.irs.gov/coronavirus/economic-impact-payment-information-center.
Posting Date April 10, 2020
The IRS has issued more information about the Economic Impact Payment (stimulus check) this morning.
Get My Payment Tool
IRS expects starting April 17th there will be a new tool offered on their website, which is www.irs.gov, where you will be able to check the status of your payment and enter direct deposit information as long as the payment has not already been scheduled. We suggest you watch for this to come available and make sure your payment is going to be scheduled for disbursement the way you want it to be. This tool will also provide information about the date you can expect the payment to be deposited or mailed.
Non-Filers: Enter Payment Info Tool
Those individuals that were not required to file a 2018 or a 2019 return because they are under the normal income limits can use this tool to provide basic information so they can determine your eligibility and allow you to enter bank information so the payment can be made by direct deposit. However, if you are a non-filer because you only receive Social Security, Social Security Disability Insurance, or Railroad Retirement Benefits you will automatically be receiving the $1,200 Economic Impact Payment. These individuals should only use this tool if you have a qualifying child under age 17 to claim for the additional $500 payment per child.
For more information you can visit the following IRS News Update: https://www.irs.gov/newsroom/treasury-irs-launch-new-tool-to-help-non-filers-register-for-economic-impact-payments
Posting Date April 1, 2020
The Department of Treasury has released the Paycheck Protection Program application along with supplemental information. Starting April 3, 2020, small businesses and sole proprietors can apply. Starting April 10, 2020, independent contractors and self-employed individuals can apply.
Although it is important to apply quickly, this program works in conjunction with other loan programs and payroll tax credit legislation. As we receive more guidance, you most likely will want to look at applying for more than one type of assistance as they can be used to pay different expenses.
Under this program, you can apply for a maximum loan amount based on 2 ½ times your monthly payroll. Besides payroll, funds can be used to pay for rent, interest on mortgages, and utilities.
The best part of this program is that the loan can be fully forgiven when it is used for payroll costs, interest on mortgages, rent, and utilities.
The following link will take you directly to the Department of Treasury application.
We will continue to issue additional email blasts when there is direct guidance and/or applications available.
Posting Date March 31, 2020
We are still working, just a little differently. We have implemented restrictions on access to our front lobby and are not taking any in-person appointments. We have some staff working different hours and others working from home. We ask that you be patient as we are not as efficient under the current circumstances. Our first and foremost concern is the safety and health of our staff and clients. All of our staff is doing the best they can to maintain our level of service while staying safe and wrapping our heads around the regulations that are changing almost daily.
Speaking of the new regulations and loan programs, here is a summary of information available at this time. We have included links to more information where possible and you are always welcome to give our office a call if you have specific concerns to your situation.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act), signed March 27, 2020
This is the stimulus payment legislation, but it contained many other things as well.
Families First Coronavirus Response Act (FFCRA) & Emergency Family Leave Medical Extended Act (EFMLEA), signed March 18, 2020
These two acts work together to expand sick leave requirements from April 1st through December 31st. Employers are required to front the costs of paid sick and family leave in specific situations. If you paid out sick or family leave to an employee, those wages may be used as a credit against your payroll tax liability due. The IRS is planning a two-week maximum turn around time for issuing refunds of additional credits.
This page from the federal department of labor gives the basics of what the FFCRA implemented: https://www.dol.gov/agencies/whd/pandemic/ffcra-employee-paid-leave
Here is a FAQ that can answer many of your questions about how this is supposed to work: https://www.dol.gov/agencies/whd/pandemic/ffcra-questions
If you have any questions or concerns, please don’t hesitate to contact our office at 745-0135 or email email@example.com to be directed to the best staff member for your question. We thank you again for your patience during these unpredictable and challenging times.
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