PPP Loans Under $50k Can Be Forgiven Now With Self Certification!
by TaxDoctor on October 23, 2020 at 1:06 pm
The Small Business Administration (SBA) issued guidance on October 8, 2020, allowing Paycheck Protection Program (PPP) loans of $50,000 or less to self-certify that they used the money appropriately and receive complete forgiveness, although borrowers will still have to provide things such as payroll provider reports. Now employers can use a further simplified form and a “check the box” paperwork process. Borrowers can use the new SBA Form 3508S for their forgiveness application, or wait for their bank, credit union or other source to update their online applications. The new rules remove the need to show that you did not reduce head counts or salaries and, therefore, suffer a reduction in loan forgiveness. Previous regulations outlined that if an employer reduced
Tax Planning and COVID: Extract Some Good From the Bad
by TaxDoctor on October 16, 2020 at 2:00 pm
COVID-19 has financially affected much more than it has infected, and our financial future as a country is tenuous as a result! As Fall takes hold, there is still time to at least make one glass of lemonade from all the lemons, but people need to put time on their calendar in October to focus on their own opportunity or risk not benefitting from the one benefit they can receive from a global pandemic. There are many categories and levels of financial effects that have taken place, but for simplification in this case we will separate everyone into two groups. People negatively affect (many ruined or greatly wounded) and those on the other side, people and companies that benefitted financially
Fix the Underpayment Tax Penalty You’re Headed For with A Simple Halloween Trick 😮
by TaxDoctor on October 12, 2020 at 3:14 pm
In a few months the U. S. will begin filing tax returns again, and at tax firms all over the country people will be making the “E-Trade” Shocked Baby Face (remember him?) when they see they are being charged penalties and interest for under paying their taxes due. Even if they made a 941 payment in the last quarter to cover ALL the tax due for the year, they can still find themselves fined by Uncle Sam as a penalty for not paying equally over the four quarters of the year. A last quarter over payment simply means they underpaid for three quarters and overpaid for one quarter, and no, it’s not “good enough” for the IRS. People also argue
“Fall” into Tax Savings for next year!
by TaxDoctor on October 2, 2020 at 3:00 pm
With fall in the air, it’s time to start thinking about things that need to be done to prepare for winter. The garden harvests are rolling in, fresh vegetables are everywhere and it’s really, really great. Time to fill up your oil tanks before the price change, and at least know where those snow tires are in the back of the garage. It’s also time for tax planning. There are so many things in the tax code that have time limitations. It’s really time to check in with yourself if you want to actually participate in your bill with the IRS. Taxes can be very much within people’s control, even though they don’t feel that way. If you’re still out on extension, heads up — you
The Tax Clock Is Ticking
by TaxDoctor on September 25, 2020 at 2:00 pm
We are nearing the October 15th filing deadline, so all the crying is almost over 2019 tax return submissions. We blogged throughout the summer on various topics, but now you’re down to a few weeks to effectively do 90% of what can be done to affect your 2020 tax liability. Only a few things can be done in 2021, once you realize how big the bill actually is. If you’re an individual making less than top wages, you can open and fund IRAs after January 1st, 2021, that can reduce your 2020 tax bill. Other than that, there’s little that can be done once the ball drops on New Year’s Eve. You have until then to get your act together, figure out where your tax
Taxes Are Due In