The new legislation includes $35B in new grant money for businesses. These are not loans, they’re grants that don’t need to be repaid. Unlike the PPP you don’t need to apply for forgiveness, but they are income taxable.
Additional EIDL Grant
Businesses that didn’t receive this grant the first time around or who only received a partial grant, will be eligible. Please remember that this started out as being a $10,000 grant and was scaled back to $1,000 per employee. If you only received $2,000 initially because you only have two employees, you’ll now be able to apply for the additional $8,000.
This time size doesn’t matter.
Applications for the second grant, known as the Targeted EIDL Advance, are supposed to be available in the coming days. To qualify, your business must be located in a low income community, and have revenues that are down 30% from a corresponding eight week period between 2020 and 2019. Applications should begin in the coming days.
Shuttered Venue Operators Grant.
The federal government allocated $15B to this new grant specifically targeting live performing art venue operators, promoters, movie theaters, museums, and theatrical producers. In order to qualify, your revenues must be down a minimum of 25%..
Entities can get grants up to $10M with supplemental grants available up to 50% of the initial grant. The program will first open to businesses that lost 90% of their revenues. This application process is also forthcoming.
Let me leave you with this.
The Internal Revenue Service has announced that income tax filing season will not begin until Friday, February 12, 2021. It has deemed that this additional time is necessary to handle the changes necessary in the system, caused by the PPP2 Legislation.
If the IRS is this late in even beginning to process returns, can you imagine how late everything else will be?
When things are on time, we normally don’t get our tax software until the second week of February. If the service isn’t even publishing the forms until just before Valentines Day, we probably won’t get our software until God knows when.
They haven’t extended the due dates of the returns. We will have even less time to get your returns done than usual.Please get your work into us today.
No matter what the future holds, 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
CONFIDENTIALITY NOTICE AND LEGAL DISCLAIMER. The information contained in this email message, including any attachments, is legally privileged and confidential and intended only for the addressee(s). If you are not the intended recipient, you are hereby notified that any reading, use, or dissemination of this message is strictly prohibited. If you have received this message in error, please notify us immediately and delete this message from your system.
Although this email and any attachments are believed to be free of any virus or other defect which may affect any computer system into which it is received and opened, it is the responsibility of the recipient to ensure it is virus free. Accounting Solutions Ltd. accepts no responsibility for any loss or damage arising from receipt and use of this email.
Note that the only professional services provide by Accounting Solutions Ltd. are those specified in a written communication from our office detailing the scope of services to be rendered and the terms and conditions applicable to the engagement.