Business tax returns - our primary focus right now is on those clients that have business tax returns (C-corps, S-corps and partnerships) as those are due on March 15th. Please be patient with us if we are not able to immediately address your personal tax returns or related questions.
Cryptocurrency - the IRS has added a question on the front page of this year's 1040 form that asks "At any point during 2020, did you receive, sell, send, exchange or otherwise acquire any financial interest in any virtual currency". While this may signal the IRS is going to take more interest in this topic, the IRS has also indicated that due to other issues on their plate, cryptocurrency is not the top priority at this time. The IRS acknowledged additional guidance is needed around the tax ramifications of cryptocurrency transactions. More to follow on this topic for sure but in the meantime we suggest you maintain very detailed, accurate records on any virtual currency activity you are involved in.
Personal tax due dates - there are rumors that if Congress passes another round of stimulus checks, the IRS may have to push back the April 15th deadline as their resources will be focused on processing the next round of stimulus checks. However, at this point, we are still working under the assumption that personal tax returns (and any related payments) are due on April 15th. Feb 12th remains the earliest date personal tax returns will be processed by the IRS.
Client portal - we appreciate how many of you have used our new client portal and have given us positive feedback on how easy it is to use - THANKS! If you did not accept the invitation in a timely fashion, it may have timed out. If so, reach out to us and we will resend. Also, please check your spam folder as some notes (including authentication notes from the portal) may get hung up in your spam folder.
Stimulus checks - we have gotten several inquiries from clients who did not receive some or any of their stimulus payments. Please be aware that as part of the 2020 tax return we file for you, we will help you claim the Recovery Rebate Credit for any missing stimulus checks. A few other points of interest:
The recovery rebate credit will either reduce any amount you owe on the 2020 tax return or increase a refund you may be receiving
The IRS determined initial eligibility for the stimulus checks based upon 2018 or 2019 tax return data. However, many people suffered reductions in their 2020 income and may now be eligible or may have had the birth of a child and may be eligible for a larger stimulus payment. In either case, the recovery rebate credit calculation will account for these changes and will assure you receive the correct stimulus amount.
On the other hand, if 2020 was good to you and put you at an income level where you are now NOT eligible for the stimulus, the IRS will NOT seek recovery of any stimulus payments you already received.
Please click on the "Stimulus Checks" image below to check on the status of your stimulus checks and additional information on the Recovery Rebate Credit.
PPP Update
Here are the latest updates on PPP
As of last week, the SBA had approved approximately 900,000 PPP loans worth $72B under the second stimulus package (first or second draw).
This means there is still $212B available for additional loans so there seems to be little concern about funds running out on this round for those that are eligible.
Most banks appear to be scrutinizing loans more closely on this second program and may be asking for additional documents not technically required under the SBA's stimulus package guidelines.
You have until the end of March to apply for a PPP loan under this program.
The SBA has acknowledged several technical difficulties in their systems which has delayed processing of the PPP loans. Click on the "Expect Delays" image for a copy of the letter the AICPA sent to the SBA highlighting some of the major issues. Bottom line, be patient and keep your eyes open to see if the bank or SBA request additional information to continue processing your loan.
As a result of the focus on new and second draw PPP loans, loan forgiveness has taken a back seat so don't be surprised if you are not hearing much on the forgiveness of your first loan at this point.
That's all for now - be safe, good luck and thanks for your business!
