Fri, 21 Aug 2020 09:19:49 -0500WeeblyThu, 30 Apr 2020 15:41:05 GMThttp://paulbeallcpa.com/blog/check-the-status-of-your-stimulus-paymentThe IRS has a tool available on their website to check the status of your economic impact payment.  
Please click on the following IRS link for more details: Stimulus Payment]]>Wed, 22 Apr 2020 05:00:00 GMThttp://paulbeallcpa.com/blog/good-news-for-current-sba-7a-loansThe SBA will automatically pay the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months.
SBA Debt Relief Overview]]>Mon, 13 Apr 2020 15:25:10 GMThttp://paulbeallcpa.com/blog/coronavirus-stimulus-checkWhat do you need to do to get your Coronavirus stimulus check?  Most people need to do nothing.  Click on this IRS link to learn more.
https://www.irs.gov/coronavirus/economic-impact-payments]]>Wed, 01 Apr 2020 16:46:59 GMThttp://paulbeallcpa.com/blog/paycheck-protection-program-ppp-loansPPP is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was recently signed by President Trump.  The loan is designed as an incentive to keep your workers on the payroll. 

Your company is eligible to apply if harmed by COVID-19 between February 15, 2020 - June 30, 2020 and you have fewer than 500 employees.  PPP will be available through June 30, 2020.

You can apply though an existing SBA 7(a) lender.  Lenders may begin accepting loan applications as early as April 3, 2020. A sample loan application is available on the SBA website.

For your company, you are eligible for up to 250% of your average monthly operating costs.  Operating costs include payroll costs, medical insurance premiums paid by the company, rent, and utilities.  The average monthly operating cost is determined over a 4 month period between March – June 2019.  For example, let’s say that that your company's average monthly operating cost is $10,000.  If you multiply $10,000 x 2.5, you’ll come up with a $25,000 PPP loan amount. 

It's my understanding that up to 80% of the loan can be forgiven if employees are retained at full pay through June 30, 2020.  The loan forgiveness will not be included in your company’s income.  Paperwork will need to be submitted in order to substantiate the loan forgiveness.

As it relates to the portion of the loan that’s not forgiven, your company will not pay more than 4% annual interest. 

There are no SBA loan fees and your first payment can be deferred for 6 months or more.  There are no early payment penalties if you decide to pay off the loan early. 

Your SBA lender should be able to address your questions regarding this loan program.

In closing, the PPP details outlined above are subject to change until the SBA finalizes the program.  Here's a link to the SBA website if you're interested in finding out more details: https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources#section-header-0]]>Sun, 29 Mar 2020 05:00:00 GMThttp://paulbeallcpa.com/blog/sba-disaster-assistance-in-response-to-coronavirusThe U.S. Small Business Administration is offering low-interest loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). This working capital can be used for to pay for payroll, accounts payables, fixed debts, and other bills that can't be paid because of the disaster's impact.  The interest rate is 3.75% for small businesses.
Click here for more details: https://www.sba.gov/disaster-assistance/coronavirus-covid-19]]>Tue, 24 Mar 2020 05:00:00 GMThttp://paulbeallcpa.com/blog/paid-sick-leave-for-workers-coronavirus-relatedThe U.S. Department of Treasury, IRS and Department of Labor have announced plans to implement Coronavirus-related paid leave for workers and tax credits for businesses with fewer than 500 employees.  This is part of the Families First Coronavirus Response Act (Act), signed by President Trump on March 18, 2020.

Since most of my clients have fewer than 50 employees, I will focus on this segment.
Note: companies with 50 or more employees have additional requirements as it relates to the child care leave portion of the Act.

Paid sick leave, related to COVID-19, is required in certain situations.  Like when your local government requires non-essential retail businesses to close or an employee is exhibiting symptoms of Coronavirus, just to name a couple.

Here’s a summary of the paid sick leave:

• Paid sick leave is available from April 1 through December 31, 2020.
• Employees of eligible employers can receive up to 80 hours of paid sick leave, up to $511 per day or up to $5,110 in the aggregate, for a total of 10 days.
• Employers receive 100% reimbursement for paid leave pursuant to the Act, which also includes the employer paid portion of health insurance.
• Employers are reimbursed in one or two ways, first by a dollar-for-dollar payroll tax offset, and then if necessary, an IRS refund that will be processed within two weeks.

Below are a couple of examples of how the employer reimbursement works:

Examples
* If an eligible employer paid $5,000 in sick leave and is otherwise required to deposit $8,000 in payroll taxes, including taxes withheld from all its employees, the employer could use up to $5,000 of the $8,000 of taxes it was going to deposit for making qualified leave payments. The employer would only be required under the law to deposit the remaining $3,000 on its next regular deposit date.

​* If an eligible employer paid $10,000 in sick leave and was required to deposit $8,000 in taxes, the employer could use the entire $8,000 of taxes in order to make qualified leave payments and file a request for an accelerated credit for the remaining $2,000.

​For specific details of the Act, please click on this link: https://www.irs.gov/newsroom/treasury-irs-and-labor-announce-plan-to-implement-coronavirus-related-paid-leave-for-workers-and-tax-credits-for-small-and-midsize-businesses-to-swiftly-recover-the-cost-of-providing-coronavirus]]>Mon, 23 Mar 2020 05:00:00 GMThttp://paulbeallcpa.com/blog/11-common-questions-about-taxes-answered-by-forbesTax Day now July 15: Treasury, IRS extend filing deadline and federal tax payments regardless of amount owed

IR-2020-58, March 21, 2020
WASHINGTON — The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020.
Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax.
Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief. Individual taxpayers who need additional time to file beyond the July 15 deadline, can request a filing extension by filing Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov. Businesses who need additional time must file Form 7004.
The IRS urges taxpayers who are due a refund to file as soon as possible. Most tax refunds are still being issued within 21 days.
"Even with the filing deadline extended, we urge taxpayers who are owed refunds to file as soon as possible and file electronically," said IRS Commissioner Chuck Rettig. "Filing electronically with direct deposit is the quickest way to get refunds. Although we are curtailing some operations during this period, the IRS is continuing with mission-critical operations to support the nation, and that includes accepting tax returns and sending refunds. As a federal agency vital to the overall operations of our country, we ask for your personal support, your understanding – and your patience. I'm incredibly proud of our employees as we navigate through numerous different challenges in this very rapidly changing environment."
The IRS will continue to monitor issues related to the COVID-19 virus, and updated information will be posted on a special coronavirus page on IRS.gov.
This announcement comes following the President's emergency declaration last week pursuant to the Stafford Act. The Stafford Act is a federal law designed to bring an orderly and systematic means of federal natural disaster and emergency assistance for state and local governments in carrying out their responsibilities to aid citizens. It was enacted in 1988.
Treasury and IRS will issue additional guidance as needed and continue working with Congress, on a bipartisan basis, on legislation to provide further relief to the American people.]]>