UPDATE: Paycheck Protection Program Flexibility Act

President Trump has signed into law the Paycheck Protection Program Flexibility Act. This law will:

  • Relax rules under the Paycheck Protection Program to give borrowers up to 24 weeks instead of 8 weeks to spend the funds;  
  • Give borrowers more flexibility in how the money is spent by reducing the amount of the loan required to be used on payroll expenses from 75% to 60% and still be eligible for loan forgiveness;
  • Extend the minimum loan repayment term from 2 years to 5 years for loans that are not forgiven;  
  • Allow borrowers to defer payroll taxes without penalty and still be eligible for loan forgiveness; and extend the rehiring safe harbor to from June 30, 2020 to December 31, 2020.

We will update this information as we receive formal guidance and updates in the coming weeks.

Opening the office June 1st by Appointment only

To our Smith & Associates Clients:

Beginning June 1, 2020 Smith & Associates will be opening the office for pick up and drop off of information BY APPOINTMENT ONLY. If you do not have an appointment you will be asked to come back at a later time.

In consideration of our employees who are at high risk, we ask that access to our office be limited to necessary visits. If you can provide the information in a manner that does not require an in person visit, ie. USPS, or utilizing a secure client portal, please do so. We encourage the use of telecommunication and telephone and will be happy to accommodate those appointments.

Visit Guidelines-

  • Face covering/mask must be worn
  • Maintain 6 feet of distance between client and employee
  • Use hand sanitizer provided or wash hands with soap and water
  • Keep in office time brief

We look forward to the time when we are able to meet with our clients again and conduct “business as usual”. Until then, we ask that you respect our guidelines as we protect our clients and employees. We truly appreciate your patience and understanding.

                                                          Smith & Associates, CPAs

Stimulus Checks received on behalf of deceased taxpayer

The IRS recently released additional information on their Economic Impact Payment (EIP) Information Center webpage regarding the eligibility of deceased taxpayers. The updated information addresses payments issued to deceased taxpayers declaring their ineligibility of the EIP (Q10) and how to return funds (Q41). Please note IRS FAQs are not legal authority or formal guidance and can change at any time.  In addition, the FAQs do not address how or when enforcement of the repayment will be handled.  Considering the language used within the FAQs, that the payment “should be returned” rather than “must be” or “is required to be returned”, recipients of these payments, on behalf of deceased taxpayers, may want to consider holding off taking immediate action until further authoritative guidance is made available.  We will continue to monitor the updates and information as it is made available. For those clients with specific questions related to their situation, please call the office to speak with one of our tax professionals.

https://www.irs.gov/coronavirus/economic-impact-payment-information-center

Flattening the curve: COVID-19 Update

Governor Mills has announced the gradual reopening of Maine businesses with a four stage plan scheduled to begin May 1st. Read more at this link https://www.maine.gov/covid19/restartingmaine Complying with CDC and State recommendations, the Smith & Associates office will be re-opening to the public on June 1st. This decision is subject to change based on State and CDC monitoring of COVID-19 progress. Smith & Associates will continue to practice social distancing in the office while disinfecting workspace’s and common areas and surfaces for the protection of our clients and staff. We encourage communication during this time by email monica@smithassociatescpa.com and phone 207-846-8881.