TBRE Consulting Company

Many small businesses are beginning to receive notification from their banks or PPP lenders to begin the PPP Loan forgiveness application process. Please do NOT ignore those messages and send that information over to your accountants as soon as possible so they can help you fill out those forms. If you do not have other employees other than yourself and you are the owner, you can fill out the EZ form, otherwise you will need to fill out the long form.

Saw a friend post this and with so many small businesses closing or struggling , and I’m sure more to come this year, this is a great idea!

Our August newsletter (a little late). https://tbreconsulting.com/newsletter?nid=1042

Our September newsletter: https://tbreconsulting.com/newsletter

IRS is sending letters to those experiencing a delay with advance payment of employer credits The Internal Revenue Service has started sending letters to taxpayers who have experienced a delay in the processing of their Form 7200, Advance Payment of Employer Credits Due To COVID-19. A taxpayer will receive letter 6312 if the IRS either rejected Form 7200 or made a change to the requested amount of advance payment due to a computation error.... The letter will explain the reason for the rejection or, if the amount is adjusted, the new payment amount will be listed on the letter. A taxpayer will receive letter 6313 if the IRS needs written verification from a taxpayer that the address listed on their Form 7200 is the current mailing address for their business. The IRS will not process Form 7200 or change the last known address until the taxpayer provides it.

Major changes to retirement plans due to COVID-19 Qualified individuals affected by COVID-19 may be able to withdraw up to $100,000 from their eligible retirement plans, including IRAs, between Jan. 1 and Dec. 30, 2020. These coronavirus-related distributions aren’t subject to the 10% additional tax that generally applies to distributions made before reaching age 59 and a half, but they are still subject to regular tax. Taxpayers can include coronavirus-related distributions ...as income on tax returns over a three-year period. They must repay the distribution to a plan or IRA within three years. Some plans may have relaxed rules on plan loan amounts and repayment terms. The limit on loans made between March 27 and Sept. 22, 2020 is raised to $100,000. Plans may suspend loan repayments due between March 27 and Dec. 31, 2020. Qualifications for relief: The law defines a qualifying person as someone who: Has tested positive and been diagnosed with COVID-19 Has a dependent or spouse who has tested positive and been diagnosed with COVID-19 Experiences financial hardship due to them, their spouse or a member of their household: o Being quarantined, furloughed or laid off or having reduced work hours o Being unable to work due to lack of childcare o Closing or reducing hours of a business that they own or operate o Having pay or self-employment income reduced o Having a job offer rescinded or start date for a job delayed Employers can choose whether to implement these coronavirus-related distribution and loan rules.Qualified individuals can claim the tax benefits of coronavirus-related distribution rules even if plan provisions aren't changed. Administrators can rely on an individual's certification that they’re a qualified person. Required minimum distributions: People who already took a required minimum distribution from certain retirement accounts in 2020 can now roll those funds back into a retirement account. The 60-day rollover period has been extended to Aug. 31, 2020. Under the relief, taxpayers with required minimum distributions from certain retirement plans can skip them this year. Distributions that can be skipped were due in 2020 from a defined-contribution retirement plan. These include a 401(k) or 403(b) plan, as well as an IRA. Among the people who can skip them are those who would have had to take the first distribution by April 1, 2020. This waiver does not apply to defined-benefit plans.

IRA contributions made by July 15 count as 2019 tax deduction The Internal Revenue Service today reminded people that contributions to traditional Individual Retirement Arrangements (IRAs) made by the postponed tax return due date of July 15, 2020, are deductible on a 2019 tax return. Taxpayers can file their 2019 tax return now and claim the deduction before the contribution is actually made. But the contribution must then be made by the July 15 due date of the return, not i...Continue reading

The new IRS deadline for returns is July 15th. In order to guarantee your returns are done by that due date all information must be received in our office by July 1st otherwise you will run the risk of having to go on extension and we will not guarantee delivery by July 15. We thank you in advance for your understanding.

If you received a PPP loan or are planning on applying, please read the attached for the new updates to the program. Some very important changes were made that will affect many businesses.

Who qualifies for which new employer tax credit? Many businesses affected by COVID-19 qualify for tax relief though credits or deferrals. Here’s a breakdown of which employers qualify for these new tax credits and the deferral of employment tax deposits and payments through Dec. 31, 2020. ... Credits for paid sick and family leave Businesses and tax-exempt organizations that have less than 500 employees and provide one or both types of leave can claim the refundable credits. Self-employed people can also claim similar credits. Some public employers must provide paid sick leave and family leave but, aren’t eligible for the credits. Employee Retention Credit The Employee Retention Credit is available to employers of any size, including tax-exempt organizations. It also may be available to tribes, if they operate a trade or business. Self-employed people can’t receive the credit for their own earnings but may be able to claim the credit for wages paid to their employees. Federal agencies, state and local governments and businesses that receive Paycheck Protection Program loans don’t qualify. Eligible employers are defined as those who operate a trade or business and experienced one of these: Fully or partially suspended operations because of a government order due to COVID-19 A significant decline in gross receipts in a calendar quarter when compared to 2019 Deferral of employment tax deposits and payments Employers may defer the deposit and payment of their share of Social Security tax and certain Railroad Retirement taxes. However, employers who receive a Paycheck Protection Program loan can’t defer their share of Social Security tax due after the lender forgives their loan.

The U.S. House of Representatives has just passed H.R. 7010, the Paycheck Protection Program Flexibility Act of 2020, in a 417-1 bipartisan vote. The Senate is expected to take up the bill over the next week and passing of favorable changes to the SBA PPP loan program is anticipated. These changes include allowing forgiveness for payroll beyond the 8-week period for up to 24 weeks through December 31. In addition, the current limitation on nonpayroll expenses will be increased from 25 to 40 percent. This will help more "nonessential" businesses including restaurants that have not yet reopened to take advantage of this program.

Economic Impact Payment FAQs updated on IRS.gov Many people have already received their Economic Impact Payment, and many more will be getting them soon. Whether it’s already there or on the way, the payment brings questions from many people. Anyone who has questions can visit IRS.gov for updated FAQs about the Economic Impact Payment. Here are a few of the questions the IRS continues to hear.... What about a child's parents who are not married to each other, but both got the $500 for the same child? Will one of them have to pay that back? The law doesn’t require repayment of an Economic Impact Payment in these situations. Each parent should review Notice 1444, Your Economic Impact Payment. The IRS will mail this notice to their last known addresses within 15 days after the payment is made. The parents should keep the notice for their 2020 tax records. If someone who owed tax scheduled a payment from their bank account, will the IRS send the payment to the account used? No, the IRS will not send an Economic Impact Payment to an account used to make a payment to the IRS. If the agency doesn’t have direct deposit bank information for someone, their payment will be mailed to the address the IRS has on file. If someone requested a direct deposit of the payment, why is the IRS mailing it? There are several reasons why someone’s payment may have been sent by mail. These include: The payment was already in process before the bank information was entered. The IRS does not have the correct bank account information The bank rejects the direct deposit The IRS will mail the payment to the address they have on file for the taxpayer. Typically, it will take up to 14 days to receive the payment.