North State Tax and Financial

***Many people will be receiving an Economic Impact Payment card from the Treasury. It is real. Your Economic Impact Payment Card contains the money you are receiving as a result of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The EIP Card is sponsored by the Treasury Department’s Bureau of the Fiscal Service as part of the US Debit Card Program. Now that you’ve received your Card, here’s how to activate and start using it. https://www.eipcard.com/

***No deductions for expenses paid by PPP debt that is forgiven (04-30-20) As anticipated, the IRS has issued guidance stating taxpayers may not deduct expenses that were paid by Paycheck Protection Program loans, if the payment of the expenses results in loan forgiveness under the program. (IRS Notice 2020-32) Loan forgiveness is available under the program for the following expenses paid and incurred during the eight weeks after the borrower receives their funds: Payroll co...sts; Mortgage interest; Rent; and Utilities. Under the Internal Revenue Code, taxpayers are precluded from claiming deductions paid with exempt income. Because PPP loan forgiveness is excludable from taxable income under the CARES Act, taxpayers may not claim deductions for these expenses. The Notice is available at: www.irs.gov/pub/irs-drop/n-20-32.pdf

Non-Filers with eligible children need to act by this Wednesday to add money to their EIPs Individuals who do not normally have a filing obligation (non-filers) and have children under the age of 17 who also don't have a filing obligation, have until 9:00 a.m. PST (12:00 p.m. EST) Wednesday, April 22, to visit the IRS special non-filer tool to enter information in order to add $500 per eligible child to their automatic payment of $1,200!

*Please let the those that would have no other way of knowing (mostly the elderly) this information know so that they do not worry* SOCIAL SECURITY RECIPIENTS recipients don’t need to file a tax return to receive Economic Impact Payments. Recipients will receive these payments as a direct deposit or by paper check, just as they would normally receive their benefits. Learn more here: https://t.co/czJSWcjAlt

*** FOR ALL SMALL BUSINESSES IMPACTED BY COVID-19*** In this uncertain employment situation, and in light of the recent laws that have been passed, we have found the following resources to be helpful. Please note, that these sites are updated frequently as more information becomes available. Please do your own due diligence to see which programs best fit your needs! A lot of businesses will qualify for some or all of these programs. Small businesses including those that ar...e SELF-EMPLOYED can qualify for new SBA loans and or grants with the potential for them to be FORGIVEN if used on the required expenses like payroll, utilities, rent, etc. Go to https://www.sba.gov/ for Economic Impact Disaster Loans: THESE ARE LOW INTEREST LOANS that up to $10k may be considered a grant and not paid back For the Payroll Protection Program with the opportunity to have it forgiven please contact the bank you do business with as this program will be administered from the SBA to you through your bank or approved SBA lender. For more detailed information on these programs please click on the links below. *Guide for Small Businesses* https://www.uschamber.com///cares-act-small-business-guide SMALL BUSINESS GUIDE: https://www.nfib.com//nfib-coronavirus-webinar-part-iii-f/ Cal Chamber Resources https://advocacy.calchamber.com/coronavirus-covid-19/ North State Tax (530)347-3395

Due to the statewide mandate by Governor Newsome we will no longer be able to offer IN-PERSON tax appointments at this time. HOWEVER, we will still be working on returns & processing payroll so you are more than welcome to drop-off, mail-in, fax or upload your tax information to us...Thank you for your understanding and please call us with any concerns or questions.