UPDATES ON STIMULUS AND TAX DEADLINES
Hey Y'all,
Just wanted to update everyone on taxes, stimulus, and forgiveness.
TAXES
Taxes for Texans have been extended through 6/15 for both payment and filing. This extends some retirement deferrals and IRA due dates as well https://www.irs.gov/newsroom/victims-of-texas-winter-storms-get-deadline-extensions-and-other-tax-relief
REV is behind on filings due to the SNOVID event and helping everyone with filing a second round of PPP and helping with forgiveness. Please let me know if you have any need for a quick turn around on your taxes (like a refinance or similar) so we can prioritize you.
NEW RELIEF BILL
Pandemic assistance grants will be made to eligible businesses serving food or drinks, including restaurants and food trucks.
There will be additional funding for forgivable loans to eligible businesses under the Paycheck Protection Program (PPP), which is currently scheduled to expire on March 31, 2021.
Nonprofit organizations and online news services will receive expanded PPP eligibility.
New targeted Economic Injury Disaster Loan grants will be available for eligible small businesses in low-income communities.
Targeted Economic Injury Disaster Loans (EIDL) and Restaurant Revitalization Grants received from the SBA will not be subject to income tax, and the exclusion will not result in the denial of a deduction, reduction of tax attributes, or loss of increase in basis.
The Employee Retention Tax Credit is extended for eligible employers that continue to pay employee wages during COVID-19-related closures or experience reduced revenue through December 31, 2021. This includes “recovery startup businesses” (those businesses that launched after February 15, 2020, with average annual gross receipts of $1 million or less).
Tax credits for paid sick and family leave are modified and extended to September 30, 2021.
Several changes were made to help employers meet funding obligations for pension plans.
The excess business loss limitation is extended through December 31, 2026.
The Section 162(m) limits on the tax deduction that public companies can take for executive compensation is extended to cover the CEO, the CFO and the five next highest paid employees, beginning in 2027.
Extends payment deferral for EIDL and PPP until 2022
Learn more about what the bill does for individuals here:
FORGIVENESS
It is now time to apply for forgiveness for the first round of PPP loans. I know you are going to want my help, but I am encouraging everyone to TRY to walk through the forgiveness application alone as some banks are VERY user friendly. I will be hosting a live webinar for everyone and walking through the application and taking questions in early April (time/date TBD). I am hoping that everyone who needs help will tune in so we can assist as many folks as possible. Again, if you haven't already, TRY TO WALK THROUGH IT. For folks with loans under 150K it should be fairly easy.
As always, we're here to answer any questions you may have on all things taxes, stimulus and money. My schedule is below for your convenience.
-Katie and the REV ATX Team