The SBA has released the Paycheck Protection Program (PPP) Loan Forgiveness Application, revised June 16, 2020.  It is anyone’s guess if this is the final version, but it is a good start.  If you’ve received PPP funds and are now trying to navigate the forgiveness application, you will want to spend some time reviewing the application and the calculations at your earliest convenience.  However, the banks haven’t officially started accepting these applications so you should also have an accountant review your documents and application before you submit any request for forgiveness.  Also, the accounting industry is suggesting you don’t rush to apply as there may continue to be changes and bugs that need to be resolved.

There are many factors to consider such as using 8 weeks versus 24 weeks, the split between payroll costs and overhead costs (75/25 or 60/40), and the FTE factor.  The application and calculations are a little different then what was initially expected from the CARES Act language and from the loan application numbers, so it is important to have all your numbers correct and the supporting documents organized to allow for the least possibility of rejection.

We are available to assist you with the applications and calculations.

Every day there are new and more innovative scams perpetrated.  The IRS regularly updates their site with details to remind taxpayers and provides information on how to spot and report them.  Don’t get caught! 

The IRS will contact taxpayers by mail first.

An agent will never leave a voicemail.

They will not contact you via email and ask you to provide any personal or financial data.

The IRS will never text you.

To find a list of current scams or confirm your suspicions of a scam go to https://www.irs.gov/newsroom/tax-scams-consumer-alerts

Should you determine you’ve been contacted by an impersonator or believe something to be a scam, follow up with one of the below listed resources.

• Tell the Treasury Inspector General for Tax Administration (TIGTA). You can report IRS scams online at or by calling TIGTA at 1-800-366-4484.
• Forward email messages that claim to be from the IRS to phishing@irs.gov. Do not open the attachments or click on any links in those emails.
• Tell the Federal Trade Commission via the FTC Complaint Assistant on FTC.gov. Add “IRS Telephone Scam” in the notes.
• Report Social Security Administration phone impostor scams using the form on the Social Security Administration’s website.
• If the IRS scams appear to be impersonating a state tax authority rather than the IRS, contact your state Attorney General’s office.

What a crazy tax season this has been!  Nothing has compared to it.  New Federal and State deadlines, which aren’t always consistent and then the new CARES Act and the loan applications for small businesses.  In my 35 years in this profession I’ve never seen anything like it, and I hope I never will again.

ESTIMATED and 2019 BALANCE TAX PAYMENTS

FEDERAL – PAYMENTS FOR 2019 liabilities AND PAYMENTS FOR 2020 ESTIMATES, typically due 4/15 and 6/15, are ALL DUE BY 7/15. 

DC – PAYMENTS FOR 2020 ARE STILL DUE 4/15, 6/15, etc. However, DC has extended the 2019 liability payments until 7/15

MD – PAYMENTS FOR 2020 are all postponed to 7/15, including the 4/15 and 6/15, but both are due, along with any 2019 outstanding liability, no later than 7/15

VA – PAYMENTS FOR 2020 for the 4/15 estimate, along with any 2019 outstanding liability, are due 6/1.  6/15 estimated payments are still due 6/15.

appreciate your patience in turnaround time this year and know that it is not usual for me to still be doing returns this late in the season.  Covoid-19 has affected everyone, if not physically, emotionally, and caused me to focus my efforts on “little fires everywhere.”

RETURN FILING DEADLINES

FEDERAL – all returns typically due 4/15, including individuals, estates, trusts, gift tax, businesses, and non-profits usually due 5/15.

MARYLAND – follows the FEDERAL deadlines

DC – follows the FEDERAL deadlines for filing.  Note above differences for estimated payment dates

VA – since VA has an automatic 6 month filing extension, the deadline for a 2019 return, typically due 5/1, is now moved to 11/2/2020

My office is doing everything possible to complete returns well before these deadlines, so please contact me ASAP if you need assistance.

04/27/2020

If you’ve received your PPP loans and haven’t talked to me about the forgiveness calculation, please be aware of a few things.

1. The 8 weeks begin the day you receive your funds and cannot be extended. It is cash basis.  So, review your payroll dates and ensure they will all fall specifically into those 8 weeks.  Not 2 months, but 8 weeks.
2. Ensure your rent and/or mortgage payments are within those 8 weeks also.
3. It appears you can prepay retirement benefits such as Safe Harbor payments during that 8 weeks too, but you’ll have to prove the payments were made.  There may be an opportunity to prepay more than on the salaries within those 8 weeks, but wait until the final SBA guidance is provided.
4. Collect your rental leases, utility bills, mortgage statements and rent invoices so you are prepared to support your forgiveness calculations.  You must show that you had a lease or mortgage on February 15^th to include the payments during your 8 weeks.

If you are unsure of any of this, feel free to contact me.