Back on January 8, 2021, the SBA release the new guidance for PPP: A borrower is generally eligible for a Second Draw PPP Loan if the borrower: Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses; Has no more than 300 employees; and Can demonstrate
In some of our previous posts, we mentioned that the financial institutions, Chambers of Commerce, small business groups, etc. were pushing for the increase of the threshold of form 3508 from the initial amount of $50,000 to the $150,000. In fact, some of the financial institutions stopped the forgiveness process intake (or never started it)
The SBA and the Treasury have release guidance (18 page document) on how the 2nd round of PPP should be calculated for the 25% reduction of revenue 2020 Q vs 2019 Q. For the majority of the business, the main impact was experienced on the second quarter of 2020 due to the lockdowns and restrictions
After being involved with a large number of applications, we have summarized some relevant tips when you apply. Keep in mind that each financial institution is different, they have different intake process (online portal, email, etc.) and different requests. Have the 1st round PPP information available - a) PPP 1st round SBA loan number and
IRS Guidance This year the deadline for 1099 is February 1, 2021. Note that you can still release 1099 after the deadline but there might be penalties associated with the filing. The 2020 tax year brings a new form. Form 1099-NEC is for tax year 2020 for nonemployee compensation of $600 or more to a
The SBA is allowing the borrowers that never got a first round of PPP to get it now. Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount You should contact your financial institution to know if you can still apply for the 1st round of PPP through them. If their
The SBA is no longer deducting the EIDL advance loan ($1,000 per employee up to $10,000) from the PPP loans and leaving that amount as a loan even if the PPP is forgiven. If you have paid fully or partially the SBA EIDL advance back, contact your financial institution to get back those funds. Link
As we had anticipated in our previous posts, the IRS has changed its position in 2020-32 guidance. On January 6, 2021, the IRS released Revenue Ruling 2021-02 which confirms the deductibility of eligible PPP expenses. As mentioned by the IRS, the new ruling "...reflects changes to law contained in the COVID-related Tax Relief Act of
NJ Tax Relief – Business Alternative Income Tax (BAIT) New NJ Law Permits State Income Tax Deduction Under Certain Circumstances Using Pass-through Entities. If you have NJ income, and a partnership, LLC or S-Corp, we recommend discussing with your accountant how to take advantage of this new law. New Jersey recently enacted the Pass-Through Business
The City of Philadelphia through the Mayor's Office of Communications <press@phila.gov> releases updates as part of their Business tax relief programs. In the Dec 1, 2020 communication, the City of Philadelphia stated the change in Use and Occupancy for restaurants as we requested after our attendance to the Tax Committee Meeting back in October 2020.
