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5 hours ago

KJ Law & CPA

COVID 19 – FORGIVENESS RULES ARE NOT FINAL
HERE ARE SOME PROPOSED NOTES:
The plan outlined in the bill would also offer the following:
• Extend the window businesses have to use the funds from eight weeks to 24 weeks
• Push back a June 30 deadline to rehire workers to December 31, 2020
• Provide more leeway on loan forgiveness for business owners who show they could not rehire workers or reopen due to safety standards
• Extend the time recipients have to repay the loan
• Let companies that get loan forgiveness defer payroll taxes
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3 days ago

KJ Law & CPA

COVID 19 - STILL UP IN THE AIR
House passes bill that would relax PPP forgiveness requirements
The US House passed a bill Thursday that would relax some of the requirements that Paycheck Protection Program fund recipients need to fulfill to qualify for forgiveness from their loans. A similar bill is under consideration in the Senate.
Full Story: Journal of Accountancy online (5/28)
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5 days ago

KJ Law & CPA

COVID 19 UPDATE – WHAT IF YOU PAY A BONUS
You're allowed to pay employees as much bonus as you want during the eight-week forgiveness period, as long as their total pay during that time doesn't come to more than $15,384. (On an annualized basis, that's equivalent to $100,000, and salaries above $100,000 aren't eligible for forgiveness.
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6 days ago

KJ Law & CPA

COVID 19
Analysis: Majority of public companies keep PPP loans
A FactSquared analysis finds more than 80% of publicly traded companies that have obtained Paycheck Protection Program loans have kept the funds. A Reuters analysis finds 76 public companies that have received PPP loans had sufficient reserves for operating expenses until at least June but have said they plan to keep the loans.
Full Story: The Hill (5/24)
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6 days ago

KJ Law & CPA

COVID 19
PPP forgiveness guidance issued as Congress mulls changes
The Small Business Administration and the Treasury Department have issued a pair of interim final rules for the Paycheck Protection Program. Meanwhile, bills in Congress could revamp two of the PPP's most significant rules. Votes could come as early as this week.
Full Story: Journal of Accountancy online (5/25)
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2 weeks ago

KJ Law & CPA

COVID 19 UPDATE – STIMULUS CHECK

If you receive, “Payment Status Not Available”, when you check the status of your stimulus check on the IRS’s website then it is likely because of one or more of the following:

1. The IRS has not processed your 2019 tax return;
2. The application doesn’t have your bank data and the IRS is working to add it;
3. You don’t usually file a tax return;
4. You used the Non-Filers section of the website and your entry hasn’t been processed yet;
5. You receive SSI or VA benefits and don’t file a tax return;
6. You’re not eligible for a payment; and/or

The information on the Get My Payment portal is updated once per day, overnight so there is no need to check more often.
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2 weeks ago

KJ Law & CPA

COVID 19 – IS 8 WEEKS ENOUGH?
When originally drafted eight weeks was thought to be enough. Now, congress is stating that the economy is not going to be up and running within that eight-week period. What do you think?
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2 weeks ago

KJ Law & CPA

COVID 19 UPDATE
An application form and instructions released by the Small Business Administration are to aid borrowers as they apply for Paycheck Protection Program loan forgiveness. However, the forms create some questions. Also, the government is expected to soon change the Paycheck Protection Program, which has seen demand slow because of concerns about loan-forgiveness terms, The Wall Street Journal reports. Tweaks under consideration include extending the eight-week period used to determine loan forgiveness and modifying the requirement that PPP recipients spend 75% of the loan on payroll costs to qualify for loan forgiveness. As always, if you have questions, please let us know.
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3 weeks ago

KJ Law & CPA

COVID 19 UPDATE
With the CARES Act, the Stafford Declaration (freeing up emergency funding), and now the proposed HEROES Act, states would be in line for about $1.12 trillion, of which $714 billion could be regarded as “flexible,” able to be spent backfilling lost revenues or for other general purposes. The remainder—particularly funding from the Coronavirus Relief Fund under the CARES Act—would be for dedicated purposes, many of which would not have existed prior to the pandemic. Localities would receive about $515 billion, of which $375 billion is flexible.
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3 weeks ago

KJ Law & CPA

COVID 19 UPDATE
IRS explains why some stimulus checks are smaller than expected
There are several reasons some people might receive a smaller stimulus check than what they were expecting, according to the Internal Revenue Service. For example, if taxpayers have not filed 2019 returns, payments are based on 2018 returns.
Full Story: The Hill (5/11)
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