Brandon Doan, CPA, APC

***IRS provides tax inflation adjustments for tax year 2021***

***PPP Loan Forgiveness Application Deadline*** QUESTION: The PPP loan forgiveness application forms (3508, 3508EZ, and 3508S) display an expiration date of 10/31/2020 in the upper-right corner. Is October 31, 2020 the deadline for borrowers to apply for forgiveness?... ANSWER: No. Borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from loan origination. However, if a borrower does not apply for loan forgiveness within 10 months after the last day of the borrower’s loan forgiveness covered period, loan payments are no longer deferred and the borrower must begin making payments on the loan. For example, a borrower whose covered period ends on October 30, 2020 has until August 30, 2021 to apply for forgiveness before loan repayment begins. The expiration date in the upper-right corner of the posted PPP loan forgiveness application forms is displayed for purposes of SBA’s compliance with the Paperwork Reduction Act, and reflects the temporary expiration date for approved use of the forms. This date will be extended, and when approved, the same forms with the new expiration date will be posted. Source: www.sba.gov

***IRS highlights employer credits for businesses during Small Business Week***

***Unemployment compensation is taxable; have tax withheld now and avoid a tax-time surprise***

***IRS urges employers to choose carefully when selecting a payroll service provider***

***IRS provides tax relief for victims of California wildfires; Oct. 15 deadline, other dates extended to Dec. 15***

***Understanding Nonprofit Financial Statements***

***Loan forgiveness under the Paycheck Protection Program and next steps***

***Pandemic Unemployment Assistance*** The EDD will begin accepting online applications for this program on Tuesday, April 28, 2020. This program will allow business owners, self-employed individuals, and independent contractors who do not qualify for the regular UI benefits in California or another state and also do not qualify for State Disability Insurance or Paid Family Leave benefits.... Benefits can be retroactive to weeks starting on or after February 2, 2020, depending on your last day of work due to COVID-19 and regardless of when you submitted your claim application. The effective date of your claim will begin the Sunday of the week when you last worked and became unemployed due to reasons directly related to COVID-19. Benefit Payments In order to provide benefits as quickly as possible, payments will be issued in phases. If you qualify for PUA, and depending on the effective date of your PUA claim, the initial payments you will receive are as follows: Phase 1 $167 per week for each week you were unemployed from February 2, 2020 to March 28, 2020 due to a COVID-19 related reason. Phase 2 $167 plus $600 per week for each week you were unemployed from March 29, 2020 to July 25, 2020, due to a COVID-19 related reason. Phase 3 $167 per week, for each week from July 26, 2020 to December 26, 2020, that you are unemployed due to a COVID-19 related reason, up to a total of 39 weeks (minus any weeks of regular UI and certain extended UI benefits that you have received). 26, 2020 to December 26, 2020, that you are unemployed due to a COVID-19 related reason, up to a total of 39 weeks (minus any weeks of regular UI and certain extended UI benefits that you have received).

Calculate how much you’ll get from the $1,200 (or more) coronavirus checks

Employee Retention Credit available for many businesses financially impacted by COVID-19 IR-2020-62, March 31, 2020 WASHINGTON The Treasury Department and the Internal Revenue Service today launched the Employee Retention Credit, designed to encourage businesses to keep employees on their payroll. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19....Continue reading