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Did you throw money in the trash?

2020-06-04T21:12:35+00:00

Sometimes trying to be too discreet can cause major headaches Did you receive your economic stimulus check from the CARES Act yet? If you qualified to receive a stimulus payment you may be one of the four million plus Americans who will receive an Economic Income Payment (EIP) debit card by mail. The Treasury department began sending the cards May 26th in a plain white envelope with the inscription “Money Network Cardholder Services in Omaha” in the return address portion. If you received an envelope like this, thought it was junk mail, and tossed it away, you are not alone. The [...]

Did you throw money in the trash?2020-06-04T21:12:35+00:00

PPP LOAN FORGIVENESS

2020-05-28T12:13:28+00:00

PPP Loan Forgiveness Butcher, Baker, Candlestick Maker Businesses that received PPP loans will have to comply with SBA guidelines and then IRS regulations to receive forgiveness and henceforward prepare books for 2020 taxes. Once the PPP funds are received, an 8-week time clock begins. Actions to properly account for that money need to be put into place A separate account is advised, but can be worked around if specific bookkeeping practices are instituted To receive full forgiveness, at least 75% of the loan must be used on payroll Employer FICA matches will not be considered, nor will payroll processing fees Owners [...]

PPP LOAN FORGIVENESS2020-05-28T12:13:28+00:00

The IRS denies a Tax Deduction

2020-05-03T16:28:12+00:00

“Like sands through the hourglass, so is the news surrounding the PPP loans.” As you may recall business owners have applied to borrow up to 2.5 times their average monthly payroll through the Payroll Protection Program. The CARES Act specifically states that the money must be used within 8 weeks of receipt for payroll and certain other expenses such as rent and utilities. If the loan proceeds are used correctly the loan can be forgiven. Generally when debt is canceled it results in gross income and becomes taxable. The CARES Act clearly states that forgiven debt under the PPP shall be [...]

The IRS denies a Tax Deduction2020-05-03T16:28:12+00:00

Stimulus Money You Can Access Immediately

2020-04-22T22:40:52+00:00

The “Special Rules for Loans and Distributions from IRAs and Qualified Plans” is one major aspect of the CARES Act that has garnered little attention. You may withdraw up to $100,000 from all qualified plans in which you participate from January 1, 2020 to December 31, 2020 without the 10% penalty for early withdrawal if you are under 59½ if any of the following circumstances occurs: You are diagnosed with SARS-COV2 or COVID-19 by a test approved by the CDC A spouse or a dependent is diagnosed with same You experience adverse financial consequences as a result of the following: Quarantined [...]

Stimulus Money You Can Access Immediately2020-04-22T22:40:52+00:00

Stimulus Scammers

2020-04-09T00:07:37+00:00

The IRS urges taxpayers to watch carefully for COVID-19 scammers as many Americans will soon be receiving stimulus checks. The IRS will not call and ask to verify payment details The IRS will not email or text news that you can get your stimulus money faster by clinking links The IRS will not require that you verify a check online or by calling a number No action is needed from taxpayers who filed either 2019 or 2018 federal tax returns.  Information contained therein will be used to make calculations and payments. The IRS plans to mail a letter about the payment [...]

Stimulus Scammers2020-04-09T00:07:37+00:00

Apply April 3rd for your PPP loan

2020-04-02T22:36:16+00:00

April 3rd, 2020 is the first day business owners in the United States can begin applying for the PPP (Payroll Protection Program) loan that is part of the Assistance for Small Businesses through the CARES Act. The secure hyperlink below will take you directly to the U.S. Treasury Department website for everything you need to know about the PPP Loan program including the online application. https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses. Hopefully you took action this week to contact your business banker to make them aware you will be applying for the PPP Loan. You will have to apply through your bank, which is likely an [...]

Apply April 3rd for your PPP loan2020-04-02T22:36:16+00:00

Action steps for PPP loans due to COVID-19

2020-04-02T22:41:27+00:00

Hello everyone. First, THANK YOU for being our clients and loyal blog post readers. We have been taking many calls and emails since the start of the COVID pandemic which has now turned into a worldwide financial crisis. We are hearing that you would rather see something from Killingsworth Spencer in Roswell than from the myriad of emails that make you wonder how you got on so many email lists.  Some have asked that we send out a daily briefing. We are studying material from official government websites, reliable webinars and white papers, and conference calls with trusted legal and financial [...]

Action steps for PPP loans due to COVID-192020-04-02T22:41:27+00:00

To File or Not to File

2020-03-30T18:56:12+00:00

The United States House of Representatives passed the $2T CARES Act this afternoon, and the President has signed it into law. Treasury Secretary Steve Mnuchin says the first set of stimulus checks under Division B, Title 1 should go out the week of April 6th. He also estimates that roughly 83% of Americans will receive some or all of the $1,200 per adult stimulus check. If you have not yet filed your 2019 tax return, you may want to delay until after you receive your stimulus check; here’s why. If your 2019 return is ready or nearly ready to be filed [...]

To File or Not to File2020-03-30T18:56:12+00:00

“Economic Injury”

2020-03-27T17:26:33+00:00

“Not because they are easy, but because they are hard.” Some of you will recognize this quotation from President Kennedy’s 1962 speech that challenged America to go to the Moon by the end of the decade – after the U.S. was in space only 22 minutes! Many laughed and said it couldn’t be done that quickly. Today our planet is faced with a different type of challenge – COVID-19. Yes, it’s hard with one of the worst pandemics in human history. How we respond as nation’s, business owners, and as individuals will determine if this turns into a worldwide depression or [...]

“Economic Injury”2020-03-27T17:26:33+00:00

Update on July 15th, 2020 tax deadline

2020-03-30T19:03:55+00:00

Update on the July 15th tax deadline Hello everyone, Lynn Spencer here. This post has the new tax filing deadlines for 2020. You now have until July 15th to do the following: File and pay federal and state of Georgia 2019 income taxes. You will automatically avoid interest and penalties on the 2019 taxes if paid in full by July 15th, 2020. Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16th, 2020 Pay your first quarter 2020 federal and state of Georgia tax estimates. Please note that your 2nd quarter tax estimate is still [...]

Update on July 15th, 2020 tax deadline2020-03-30T19:03:55+00:00