In yet another change to the PPP Loan system, the Small Business Administration released a new set of Interim Final Rules. The complete 32 page text can be found at the following web address.
What they are doing is beyond understanding and imagination.
These rule changes are specifically for self-employed individuals who file a Schedule C. It allows them to borrow larger sums than the rest of us based upon their gross income rather than their net taxable income.
These changes are not retroactive. If you’ve already done a first and second draw, you cannot go back and ask for more based upon this new ruling.
Frankly, I don’t know how this isn’t going to turn into one big lawsuit. What they are doing is clearly discriminatory against the rest of us.
Six new forms were also introduced. These include
Updated PPP borrower first-draw (Form 2483) and second-draw (Form 2483-SD) application forms.
New PPP first-draw (Form 2483-C) and second-draw (Form 2483-SD-C) borrower application forms for Schedule C filers using gross income.
A revised lender application form for PPP loan guaranty (Form 2484)
A revised PPP second-draw lender application form (2484-SD)
These new borrowers are not only allowed to access additional funds, but are also allowed to deduct additional expenses. Those expenses include
Owner compensation (if net profit is used)
Employee payroll costs.
Mortgage interest payments.
Business rent payments.
Business utility payments
Interest payments on any other debt incurred before Feb. 15, 2020
Covered operations expenditures, as defined in Section 7A(a) of the Small Business Act,
Covered property damage costs from the riots
Covered supplier costs
Covered worker protection expenditures from the pandemic
Let me leave you with this.
This tax season is turning into the most difficult of my thirty years in the business. There’s a lot more to do, and everything was late.
Because of the CARES Act legislation in early January, the IRS didn’t even publish or begin accepting returns until the middle of February. Since they haven’t extended the filing season as they did last year, this is causing a time crunch of gargantuan proportions.
Let’s also remember all of the additional work that had to be done in January on the Employer Retention Credits for many of you.
Our business isn’t like others. We don’t have a machine where we can simply speed things up to get more out. In order to handle the additional work of tax season, other practices hire untrained, seasonal help. These people don’t know what they are doing, are terribly unmanaged, and push bad work out the door.
We not only haven’t but would never do that to any of our clients.
We take pride in having the highest possible standards in the industry. What we do takes time. At Accounting Solutions Ltd., I’ve gathered a staff of individuals that are all here to do the best work of their careers.
I have the pleasure of being able to practice my profession, with like-minded professionals, who all have one goal in mind; to protect our clients, their families, and their businesses.
Asking us to do it any other way, is simply out of the question.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. If there is anything you need, whether you are a current client or not, you have but to ask. I’m here and I remain,
Accounting Solutions Ltd.
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