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.
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.
Conference Call Relating to the CARES Act
Miss the conference call today on the CARES ACT, the Payroll Protection Program and the Economic Injury Disaster Loans?
Click the link below to hear what you missed.
After reaching the 'soundcloud website' click the sound bar at minute 17 to hear the conference call.
March 31, 2020
Small businesses and sole proprietorships hoping to secure a loan through the federal Paycheck Protection Program can begin applying on Friday. The Treasury Department released information for borrowers and lenders, posted an application and urged applicants to act quickly.
March 28, 2020
Now that Governor Ivey has ordered all non-essential businesses to close at 5:00 on Saturday, March 28, 2020, there are going to be many people unemployed. If you are one of these people, please go to labor.alabama.gov and file for unemployment.
If you are a business owner, these claims for unemployment will not cause your unemployment rate to go up.
We will continue to process payrolls for our clients that remain open.
March 24, 2020
Have a small business and not sure how to apply for the SBA Disaster Relief Fund? Click the webinar link below to see how to apply.
Currently bills in both the House and the Senate are being debated that can provide significant relief for small businesses.
March 22, 2020
Downs and Associates continues to operate despite the Corona virus. Out of an abundance of caution, we would encourage our clients to scan and email or fax all documents necessary to prepare your tax return. You can email items to Jrdowns@DandAcpa.com. You can fax items to (205) 221-5474.
Changes have been made and the deadline to pay any individual or corporate income taxes has been extended to July 15, 2020. Also, the individual and corporate filing deadlines are now extended until July 15, 2020. In addition, if you owe estimated tax payments, that deadline is also extended to July 15, 2020.
We will continue to prepare and file tax returns as we have done so historically.
If you have any questions, feel free to get in touch with us (205) 221-5454.
Even a profitable business can have cash flow problems. Call Downs & Associates and let us help you. We can evaluate your company's financial condition and estimate required finances and track cash flow. Preparation and a plan will alleviate your stress when you Call Downs & Associates today at 205-221-5454
Here is an example of a simple, monthly budgeting plan. This is what we can do for you on a large scale! Call us, and let us save you money!
Effective estate planning facilitates the orderly transfer of assets to your beneficiaries, provides security for your surviving spouse, and can reduce or eliminate the tax due on the transfer of your business and other assets. We also provide estate and gift tax planning to help transfer your wealth, effectively reduce your estate, thereby minimizing your tax liability both Estate and Individual.
Call us at 205-221-5454.
Downs and Associates CPAs, LLC