The SBA and IRS issued guidance on Tuesday addressing a range of questions on the PPP2 legislation. The document answers FAQ’s on many issues including
– How to calculate the PPP2 second draw
– How to determine if a borrower experienced a 25% reduction in sales
– The documents required to prove that reduction
– The documents required to substantiate payroll numbers
– How to calculate the second draw for Self Employed Individuals, Partnerships, and Not-For-Profits.
– How entities not in business a full year before February 15, 2020 should calculate a reduction in income
It also handles a bunch of questions on First Draw Borrowers. The document can be found at the following web address
https://www.sba.gov/sites/default/files/2021-01/PPP%20–%20How%20to%20Calculate%20Maximum%20Loan%20Amounts%20for%20First%20Draw%20PPP%20Loans%20and%20What%20Documentation%20to%20Provide%20%E2%80%93%20By%20Business%20Type%20%281.17.2021%29.pdf
The IRS also issued a ruling on excess PPP loan amount forgiveness. I have spoken to several of you, where you received a PPP Loan based upon amounts paid to Independent Contractors artificially inflating your loan amount. Whatever the reason behind the larger loan, the IRS has now said that you cannot include items outside of their list to receive forgiveness. You’re just going to need to suck it up and repay the loan.
Let me leave you with this.
Our new president took the oath of office this morning and is scheduled to sign 15 executive orders this evening on a range of issues including
– The C-19 Pandemic
– Rejoining the World Health Organization
– Extending the foreclosure moratorium
– Extending the pause on student loan payments
– Rejoining the Paris Climate Agreement
– Several orders on Oil and Gas Exploration
– Several more on Immigration
If they are handling all of this on day one, it probably won’t take that long for them to raise your taxes in order to pay for all of this.
Normally when they raise taxes, they throw in a couple of carrots to soften the blow. They close a window, and open a couple of doors. My job is to always find the doors.
This president has already said that he will raise taxes. We’ll see if they open any doors.
Either way, we’ll be here doing everything we can to legally reduce your taxes. We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. If there’s anything you need, whether you are a current client or not, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
www.AccountingSolutionsLtd.com
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