Hi There!
Please read the following information thoroughly. These apply to everyone - individuals and businesses.
Filing Deadline Extended
The IRS and CT has extended the filing deadline to Monday, May 17. This means that tax returns, amounts owed and extensions no longer have to be processed by April 15.
As of today, the first estimates for 2021 are still due on April 15. Also, corporate and trust returns are still due April 15. We will send an update if that also changes to May 17 as we expect it might.
· If you have estimates already set up for April 15, you should just leave them as such. The second one is still due on June 15.
· NY, NJ and MA have not extended their deadline yet. They all did last year so we expect them to do the same this year.
Unemployment
A new provision waives federal taxes on the first $10,200 of unemployment benefits you received in 2020. Married couples who file jointly and both collected unemployment insurance benefits in 2020 will have taxes waived on $10,200 per person, or up to $20,400 of unemployment insurance benefits total. The waiver applies to individuals and married couples who made less than $150,000 in adjusted gross income in 2020.
If you have already filed a return and had unemployment, please be patient. Within the next two weeks, the IRS will announce how they will fix your return and adjust your refund/amount owed accordingly.
PPP2 Loan Extended
The latest round of the Paycheck Protection Plan (“PPP Loan”) application deadline for 2021 has been extended to Monday May 31, 2021. All applications received by that date will also be eligible for eventual partial or full forgiveness, depending on the particular circumstances of each borrower. SKP is ready to assist our clients as needed in all phases of the PPP Loan process.
Status of Forgiveness for Initial PPP
Most banks are accepting forgiveness applications. Watch for an email inviting you to request forgiveness. Please note the process for forgiveness application is different for every bank. For example, Chase will send you an email inviting you to request forgiveness while Bank of America PPP loan forgiveness portal is now open. TD Bank PPP loan forgiveness portal is open for loans up to $150,000. Liberty Bank is now accepting PPP loan forgiveness application for all loans. If SKP has not reached out to you yet, please call if you need assistance.
Restaurants & Bars: Important Information!!!
One of the most significant recent developments in the American Rescue Plan is the creation of the Restaurant Revitalization Fund (RRF). This new $28.6 billion grant program will specifically target hard-hit restaurants and bars, with restaurants able to apply for grants based on lost gross revenue between 2019 and 2020. The maximum grant size will be $5 million for restaurants and $10 million for restaurant groups.
All restaurant owners that want to apply for RRF grants should immediately register with the government using the System of Award Management (SAM). Here is a link with more valuable information:
Unlike the PPP, this money is coming directly from the federal government, so you have to go through a different registration process so the government recognizes you as someone they can send money to. Be sure to start pulling your paperwork and tax documents, so you are ready to go when the application comes online. $28.6 billion is going to go quickly.
Thank you and be well!
Rich Pavano, CPA
203.933.1679
