|
Tax season is right around the corner! Give us a call and let us help you! Visit is at www.dandacpa.com or call us at (205) 221-5454. #downsandassociates #experiencecounts  Last night Congress finally passed the long awaited stimulus bill. There are many items in this bill that will have an impact on both individuals and businesses. Three of the major items relate to the Paycheck Protection Program (PPP).
First, there will be a second round of PPP loans available to certain businesses. This round will differ in that the business will have to document a drop in revenue of at least 25% in any quarter of 2020 compared to 2019. If you are a business client of Downs & Associates CPAs, LLC, and we reconcile your bank statements on a monthly basis, we will prepare the calculation and let you know if you qualify. If you are a business client of Downs & Associates CPAs, LLC, and we do not reconcile your bank statements on a monthly basis, please provide us with all of your bank statements (or some other method to verify your gross monthly revenue) for all of 2019 and 2020. The next major change relates to the forgiveness of PPP loans of $150,000 and less. The bill directs the SBA to develop a one page document that the borrower can sign to certify that they used the proceeds of their PPP loan correctly, and the SBA will forgive the loan. Those with loans of $150,000 and less will only be subject to audit if they commit fraud or do not use the proceeds of the loan properly. The third item is probably the most important. This bill clarifies the intent of Congress that neither the receipt of funds under a PPP loan is a taxable event and all expenses that are paid with the loan funds are deductible. This means that those that received a PPP loan truly received tax free money. There are many other provisions contained in this bill. Please see the article below for a good summary of the items in the bill. Please get in touch with Downs & Associates CPAs, LLC if you have any questions. https://www.forbes.com/.../stimulus-payments-paycheck.../ Thank you Essential Workers! Our town needs you and we appreciate you! Downs & Associates, Certified Public Accountants, LLC  ★𝐀𝐭𝐭𝐞𝐧𝐭𝐢𝗼𝐧★
Last night the IRS issued Revenue Ruling 2020-27 regarding the Paycheck Protection Program (PPP). Please see the link below for a copy of that Revenue Ruling. According to this Revenue Ruling, all recipients of funds under the Paycheck Protection Program (PPP) are not allowed to deduct the expenses that are paid with the proceeds of the PPP loans on their 2020 tax returns. This Revenue Ruling basically says that even if you have not received forgiveness of your PPP loan in 2020, you are not allowed to deduct the expenses that you paid with your PPP on your 2020 tax return. Because you are not able to deduct these expenses, it will result in your tax liability going up. If you spent your PPP loan appropriately, it is assumed that the loan will be forgiven and therefore you are not allowed to deduct the expenses paid with the PPP loan. If Congress does not pass any further legislation, you will not be allowed to deduct the expenses you paid with your PPP loan. If you have any questions regarding your PPP loan or the forgiveness of your PPP loan, please reach out to the professionals at Downs & Associates CPAs, LLC. https://www.irs.gov/pub/irs-drop/rr-20-27.pdf... Governor Kay Ivey has just announced another round of grants for small businesses. This round of grants is up to $20,000 per business. The grants can cover expenses incurred due to the operational interruptions caused by the pandemic. The application for these funds can be made beginning at noon on Monday, November 23rd. Please review the link below and let your contact at Downs & Associates CPAs, LLC know if you would like assistance applying for this grant.
https://governor.alabama.gov/.../governor-ivey.../... #downsandassociates #experiencecounts |
AuthorDowns and Associates CPAs, LLC Archives
April 2022
Categories
All
|
RSS Feed