I represent tax payers in the greater St. Louis area, the State of Missouri and nationwide who have IRS and state tax issues. As we move into the initial stages of reopening the rules continue to change regarding how and when loan forgivness will be considered. Since there are many questions to be answers I thought I would provide a summary of what's going on right now.
As of Friday the May 29th there is still a large amount of money available to be lent. Reports of up to 138 billion available seems to be an accurate number according to the Journal of Accountancy as of May 23. If you have not applied there is still ample opportunity to get some of the money. Now is the time to do it, so don't hesitate.
The House of Respresentives passed a bill that will make it easier to obtain a PPP loan forgiveness. Here are some of the highlights.
*Extends the 8 weeks into 24 weeks.
*Changes two years to five years and retains the 1% interest rate.
*Changes June 30 to December 31.
PPP Loans are a big deal for the sell-employed with no employees. Things to remember about the loan.
*You have to spend the deemed Scheldule C payroll portion of the PPP funds on yourself.
* Using a seperate bank account is best practice. Sooner or later the goverment will audit these loans to make sure that you or your company really qualify for loan forgiveness. That you can bet on. I know of a number of companies that took this loans are using the funds for expenses that don't qualify.
Don't submit your application now on forgiveness. The rules are constantly changing and it should get easier as we progress lateer in the month of June.
In closing don't wait on applying for PPP Loans. There are a number of non tradional lenders approved by the SBA and the process to obtain money is getting easier, so don't wait.
If you or someone else has questions about how to obtain a PPP loan or has general questions on forgiveness don't hestiate to contact me and I will be happy to help you. Right now the IRS has only 25 % of it's work force back at various campuses so it is a good time to get your house in order if you have unfiled returns or have outstanding tax issues.
My email address is info@steveshapiroea.com
Arch Tax Resolution
620 South Benton
St. Charles, MO 63301
(P) 636-397-2759 (F) 636-397-6312
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