I don’t know if any of you have noticed, but the IRS and the SBA are no longer rubber stamping stimulus payments.
2nd Draw PPP
One of the requirements to apply for the 2nd Draw PPP is to certify that one quarter in 2020 is down 25% from a similar quarter in 2019. You are required to actually put your sales for the two periods on the application certifying that they are correct.
These are going through an underwriting process, with as many as 20% being denied. I have written extensively about these denials and how they can be fixed, but the point is that this is no longer easy.
EIDL Grant
One of the nicer parts of the legislation that went through earlier this year was a refunding of the EIDL Grant Program. If you didn’t receive it at all, then it was offered. If you only received a partial grant, then they offered the rest; up to $10,000.
In order to qualify, you needed to be down 30% or more over an eight week period in 2020 as opposed to 2019. The application required you to enter and certify your monthly sales beginning January of 2019 through February of 2021. It also required you to sign Form 4506 – T which allows the SBA to get a copy of your income tax returns.
This grant was underwritten as well. Many have been denied because the numbers on their application did not match the sales figure on their income tax return. These grants are now taking about six weeks for approval and disbursement.
Employee Retention Credit
I have written extensively about some of the difficulties that are being experienced on these. Before, when the IRS was taking our money, they didn’t give us any problems. Now that we are asking for some of it back, they’re being fussy, but these problems are only temporary. We’re getting them done and our clients are getting some impressively large checks. The IRS is just being rather persnickety.
If you haven’t yet signed up for our consulting and preparation program, do so today. You don’t want to leave this money on the table. 70% of your 2021 payroll is not an insignificant sum. Press the button on this communication and fill out the attached agreement. You’ll be glad that you did.
Let me leave you with this.
The need for quality accounting has never before been so important. I just spent some time talking about how the SBA and the IRS is underwriting and approving the stimulus money.
What do you think will happen if your numbers don’t match?
What if you disclosed your monthly sales on the EIDL Grant application, and it doesn’t match the income figure on your income tax return that was completed six months later? There is a signature on both the EIDL Grant application and the income tax return certifying the numbers.
Do you think they will just let it go?
If you try to do this yourself and screw it up, I’m foreseeing a tidal wave of audits by both the IRS and the SBA. Be careful. It looks like the back end of this stimulus money phenomenon could be them auditing a bunch of self prepared returns to ask for most or all of it back.
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 is 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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