Interstate Business Management

According to a recent report, the IRS is apparently understaffed, overstretched and waaaay behind on collections notices, and other such things. But that doesn't mean they've forgotten about your tax bill. Riding on the waves of these IRS delays will only bring about greater harm to your tax situation.... Don't be like the IRS. Get on top of it, with our help.

Just announced... Tax season opens on Friday, Feb. 12, 2021. This is when the IRS will begin accepting paper AND electronic filing of your 2020 tax returns.... As always, we can help.

Business owners: Beginning Jan. 1, 2021 (and through June 30, 2021), the new relief bill expanded the Employee Retention Credit. - The bill increases the payroll tax credit rate from 50 percent to 70 percent of qualified wages.... - Also it expands eligibility for the credit by reducing the required year-over-year gross receipts decline from 50% to 20% and provides a safe harbor allowing employers to use prior quarter gross receipts to determine eligibility. This might not seem significant, but for the right business, this is VERY good news. - The limit on per-employee creditable wages is increased from $10,000 for the year to $10,000 for each quarter. Much more generous. - The 100-employee delineation for determining the relevant qualified wage base increases to employers with 500 or fewer employees. - Employers who receive PPP loans may still qualify for the ERTC with respect to wages that are not paid for with forgiven PPP proceeds. Previously, you had to choose one program or the other ... now, as long as you qualify for both, you can use both.

How about some good news? Here's an inspirational story about serving those we love and reminding us we're never too old to do great things. https://bit.ly/3snnbXr

PPP updates: Deductible PPP Expenses Under the new COVID relief bill (CAA), businesses are now allowed to deduct expenses associated with their forgiven PPP loans -- this is big news. ... New PPP Funds Further, the new law provides $284.45B to reopen and strengthen PPP for first and second time borrowers and reauthorizes the program through March 31, 2021. The requirement in order to receive a second PPP is that the small business has less than 300 employees and can demonstrate a revenue reduction of 25% in any quarter. PPP Forgiveness There are now simplified forgiveness applications for loans under $150K. Every lender will handle slightly differently, but what the bill indicates is that the borrower signs and submits a one-page certification that requires the borrower to list the loan amount, the number of employees retained, and the estimated total amount of the loan spent on payroll costs. That's it! Eligible Expenses The bill also expands the list of eligible expenses to include covered operations (software, cloud computing and other human resources and accounting needs), PPE, covered supplier costs and damage costs due to public disturbances. Related to EIDL The bill repeals the CARES Act provision that requires borrowers to deduct their EIDL Advance from their PPP loan forgiveness amount. ...That's a lot of info, but we wanted to simply summarize the basics of the new PPP provisions for you. (Yes, that was the simplified version.) Let us know what questions you have. We can help.