As we have for 60 years, Fradin & Company will continue to keep you informed with the most current information available on the coronavirus and its impact on our economy and you.
LATEST NEWS, July 8, 2021:
The Child Tax Credit for individuals was changed for 2021 only, by the American Rescue Plan Act. Our blog has details on the advance payments starting July 15, and discusses reasons why some taxpayers may want to opt out of the advance payments.
January, 2021: New Paycheck Protection Loans and Paycheck Protection Loan Forgiveness
PAYCHECK PROTECTION PROGRAM LOANS FOR 2021
A new round of Paycheck Protection Program loans is now being offered. To qualify, your business must have a 25% reduction in gross sales for any quarter in 2020 compared to the same quarter in 2019. Businesses in the hospitality industry will qualify for loan amounts equivalent to 3.5 months of average payroll. All other businesses will qualify for 2.5 months average payroll.
Loan forgiveness parameters are the same as for the first round of loans: at least 60% of the funds must be used for payroll, and your employee count may not decrease by more than 25%. 40% of the funds can be used for rent, mortgage interest and utilities, worker protection related to COVID-19, and certain other expenses.
The SBA began accepting applications for the new loans as of January 11. Some banks are also accepting applications now, while others have not started accepting them yet. We are constantly monitoring the status, and will start new applications as soon as we are able to. Applications will be accepted through March 31, 2021.
PAYCHECK PROTECTION LOAN FORGIVENESS
If you received a Paycheck Protection Loan last year, it is time to complete your application for loan forgiveness. These applications would be due based on the date the loan was received.
Banks are sending to all loan recipients TWO emails with login information for the PPP loan portal. One contains your portal username and company ID, the other email contains your password. You must have access to the portal to submit your loan forgiveness application or to apply for a new PPP loan.
If you want us to complete your forgiveness application, or an application for a second PPP loan, please forward us both emails with your portal information as soon as possible.
Remember, you must have met the forgiveness terms of the loan in order to qualify.
If you would like us to prepare your application for loan forgiveness or for a new loan, please contact Tessa or Neil as soon as possible.
November 24, 2020: To comply with the state mandated "Pause" we have updated our office safety practices. These changes to reduce person to person exposure include consultations by phone or video ONLY; staff working remotely as much as possible, and new waiting room practices to avoid multiple clients entering our small waiting room. Learn more about these policies on our Office Safety Practices page
August 24, 2020: the IRS updated its status regarding COVID-19 processing delays.
Uncleared Checks for Tax Payments: The IRS is posting tax payment checks as of the date the check was received, not the date they processed it, so you will not be penalized if you mailed the check on time. Do not cancel your check or send a new one; and make sure your account has enough money to cover the check when it is deposited.
Tax Notices: The IRS is also mailing backlogged tax notices. You may receive a notice with a past due deadline for your payment or response. However, the notice should also have an insert that gives you a more current deadline. If you have already made a payment related to a tax due notice, wait until your check is deposited before you respond to the notice.
April 1, 2020: The Paycheck Protection Loan Program for small business employers is now open for applications. Call us if you would like help with your application.
The coronavirus economic stimulus legislation enacted on March 27, named “The Coronavirus Aid, Relief and Economic Security Act” (CARES Act), addresses the perceived needs of individuals, and small and large businesses. This page is designed to provide you with an overview of the provisions for individuals and small businesses; and is not intended to be an in-depth analysis of the act.
In approximately 3 weeks, the US Treasury will begin sending out rebate checks to individual taxpayers. If you have asked for refunds to be electronically deposited in either 2018 or 2019, the US Treasury will direct deposit your rebate as well. If your bank information has changed, you may need to contact the bank or call the IRS. If you do not have current direct deposit set up, your check will be mailed.
Small Business Stimulus
The CARES Act has many small business provisions which cover a number of areas. Each provision has its own set of objectives, guidance and rules. We list them below, and attempt to provide you with an appropriate outline of each. As noted above, not all guidance has been issued and we do not expect to see all of it for several days or weeks.
Once these programs do begin, expect another several weeks for the requests to be processed. Of note, not all programs are available at the same time to businesses. In other words, many programs do not allow you to “double dip.”
Read more about these important small business stimulus programs, including:
Paycheck Protection Loan and Forgiveness Program
Employee Retention Tax Credit
Employer Payroll and Self-Employed Tax Deferral
Net Operating Losses
Qualified improvement Property
Other Provisions of the CARES Act
Other Provisions of the CARES Act are available and can be discussed at your request. These include Modification of LImitation on Losses for Non-Corporate Taxpayers; Acceleration of Refundable Alternative Minimum Tax Credit; Relaxation of Limitations on Business Interest Expense Deduction; Air Travel Excise Tax Relief; Employer Student Loan Payments.