IRS Deadlines & PPP Additional Details

The IRS just released Notice 2020-23 to extend more tax deadlines for individuals and businesses. 

The relief covers taxpayers that have a filing or payment deadline between April 1, 2020, and July 15, 2020. It applies to fiscal year entities, estate tax returns, nonprofit organizations, information returns, and more. 

In addition, the deadline for second quarter estimated tax payments has been moved from June 15 to July 15, and the relief is automatic so taxpayers don’t need to file any extension forms to get the relief.

Thank you to everyone who was able to join us for the PPP Webinar. The webinar reviewed how the loan process works and the 8-week period for calculating loan forgiveness. Since the webinar was broadcast additional information was received, so we wanted to cover some details on the changes and reiterate some of the best practices we covered.

When does the eight-week period begin?
The eight-week period begins on the date the lender makes the first disbursement of the PPP loan proceeds to the borrower.The lender must make the first disbursement of the loan within ten calendar days from the date of loan approval (this is new information received after the webinar was recorded)

Consider using a separate account dedicated to the PPP Loan proceeds.
Using a separate account will make tracking much easier. If a copy of the bank activity is requested, you can easily provide detail on how the funds were used.

Maintain detailed records for support of payroll costs.
Prepare the data for submission related to each payroll including:
Group Health Care Coverage
Health Care Costs
Retirement Plan Employer Contributions

If paying employees under the Families First Coronavirus Response Act for Emergency Sick Pay or Emergency FMLA, maintain adequate records as these amounts will be adjustments to your payroll costs.You cannot participate in the following CARES act benefits:Employee Retention CreditDelay of Employer Payroll Tax Payments (FICA)Keep a detailed record with invoices paid for the following: Rent – Utilities – Mortgage Interest

Planning ahead will facilitate the maximum opportunity for Loan Forgiveness for the period of eight weeks after the date of your loan. Please use our calculator to estimate your loan forgiveness.

Download The Calculator
View The Webinar