COVID TAX RELIEF UPDATES
October 6, 2020 - Douglas Myser
Covid tax relief updates. After a brief shutdown of the EIDL portal on the SBA website due to the sheer number of applications received, the SBA resumed accepting applications for their loan program. The EIDL grant monies, which issued advanced loans not subject to repayment, was discontinued on July 11, 2020 as the funds allocated to the grant program have been fully distributed. However, the EIDL loan program is still accepting applications. The maximum laon amount available to a small business is $150,000. Any loan over $25,000 requires collateral and any loan under $200,000 does not require a personal guarantee. The SBA has received about 10 million applications for this program and are processing them within about 21 days. The loan funds are to be used for current operating expenses. This includes rent, utilities, payroll, supplies, inventory, and other general and administrative expenses. It is not to replace long term debt or for new asset purchases. Covid tax relief updates.
Business who had received the EIDL grant and also applied for forgiveness of the Payment Protection Loan loan program will see the amount of the forgiven loan reduced by the EIDL, grant reduction received. The Paycheck Protection Plan loans was modified with the Paycheck Protection Plan Flexibility Act, which was signed into law on June 5, 2020 offering the following revisions: Extends the loan forgiveness covered period from 8 weeks to 24 weeks. A loan recipient that received funds prior to the date of enactment may elect to keep their 8 week covered period. Allows deferral of employer's portion of Social Security tax for PPP loan of Social Security tax for PPP loan recipients through December 31, 2020. Previously the deferral would have ended once the PPP loan had been forgiven by the lender. Extends the June 30, 2020 safe harbor dare for workforce and salary/wage reductions to December 31, 2020. Use of these loans may keep individuals and business owners from needing Tax Resolution Services.
If your finances are a wreck and you have a back tax debt, call our Tax Resolution Company for help. We are well regarded among other Tax Resolution Companies who have a Nationwide presence. We will file any past due returns, then determine your Tax Relief options in both the IRS and State tax codes, including the IRS Fresh Start Program and options not in that program. Our process for Tax Resolution is stress free for our clients. If you have a IRS Wage Garnishment we can work on that also. Call for a confidential Tax Resolution Services consultation today. 1-888-689-7861