Phone System Update
The office phone lines have been restored! The office can accept incoming calls again.
Office phone lines temporarily unavailable
As of October 24, 2022 Smith & Associates phone lines are unavailable due to technical difficulties. Please email Monica Whitney at monica@smithassociatescpa.com and we will reach out to you as soon as possible either by cell phone or email. We apologize for any inconvenience.
COVID Office Protocol Update
The office is open again! We are following the guidelines set by the Maine CDC and have relaxed our COVID protocols for coming into the office. Masks are no longer required to enter the office and we continue to sanitize common areas frequently. Please feel free to reach out to the office at anytime with any questions.
Winter Storm Office Closing
On January 29, 2022 Smith & Associates will be closed due to the impending Winter Storm, Monica will be available to reach until 12pm on Saturday via her email. monica@smithassociatescpa,com
Holiday Hours
As the holiday season quickly approaches we wanted to update everyone on the office hours for the remainder of 2021. On December 23rd we will be closing the office at 12pm and will be closed on December 24th in observance of Christmas. On December 30th we will be closing the office at 12pm and closed on December 31st in observance of New Year’s. We at Smith & Associates wish everyone a wonderful holiday season with family and friends.
The Office is Open!
The office is open to the public once more! We are asking that if you plan on coming into the office please call ahead when possible and we ask that masks be worn while in the office. When entering the office please use the side of the building entrance as the doors to the suite will remain locked to allow time for staff to mask appropriately and greet clients. We are trying to maintain social distancing for the safety and consideration of our staff and clients. We continue to encourage meetings via Zoom or phone, we are also offering in person meetings by appointment.
Also, a reminder for clients that have had an extension filed and still need to provide your tax information to Smith & Associates:
Personal (1040) information must be received by September 1, 2021.
Business Corporations (1120 & 1120S) information must be received by August 1, 2021.
Partnership (1065) information must be received by August 1, 2021.
Trusts (1041) information must be received by August 1, 2021.
We are extremely happy to be getting back on track with “normal” office protocol and we have appreciated everyone’s patience during this time! Please feel free to call the office (207) 846-8881 with any questions.
Tax Season Reminders
As tax season is already in full swing, we wanted to remind everyone of the COVID protocols for the office that are still in place from June 2020. We are strongly encouraging clients to utilize our secure client portals or the USPS to get their tax information to us. If you require any assistance with a client portal please contact our Administrative Manager Monica at 207-846-8881. The office remains closed to the public and we have limited times for drop off and pick up available. We require anyone that must drop off their materials to make an appointment ahead of time. Once here at the office please call and we will come and meet you outside, and you must be wearing a face mask. We are following the Maine CDC guidelines to maintain safety for our staff and our clients, we thank you for your patience.
COVID-19 Consolidated Appropriations Act
Passage of COVID-19 Relief Law PPP Loans & Other Key Provisions
On December 27, 2020, the Consolidated Appropriations Act, 2021 (CAA) was signed into law which included additional COVID-19 related relief.
Tax Deductibility for Paycheck Protection Program (PPP) Expenses
The CAA specifies that business expenses paid with forgiven PPP loans are tax-deductible. This supersedes disputed IRS guidance (Notice 2020-32 and Rev. Rul. 2020-27) that such expenses could not be deducted. The CAA clarifies that gross income does not include any amount that would otherwise arise from the forgiveness of a PPP loan. The provision is effective as of the date of enactment of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The provision provides similar treatment for second draw PPP loans, effective for tax years ending after the date of enactment of the provision.
Restart of PPP Loans
Eligibility
New PPP loans will be available to first-time qualified borrowers and, for the first time, to businesses that previously received a PPP loan. Specifically, previous PPP recipients may apply for another loan of up to $2 million, provided they:
• Have 300 or fewer employees
• Have used or will use the full amount of their first PPP loan
• Can show a 25% gross revenue decline in any 2020 quarter compared with the same quarter in 2019
Borrowers from the following groups are still eligible for the program even if they didn’t take out a loan in the first round:
• Businesses with 500 or fewer employees that are eligible for other SBA 7(a) loans
• Sole proprietors, independent contractors, and eligible self-employed individuals
• Not-for-Profits, including churches
• Accommodation and food services operations (those with North American Industry Classification System (NAICS) codes starting with 72) with fewer than 300 employees per physical location
PPP Loan Terms
As with earlier PPP funding, the costs eligible for loan forgiveness in the new PPP funding include payroll, rent, covered mortgage interest, and utilities. The new PPP funding also makes the following potentially forgivable:
• Covered worker protection and facility modification expenditures, including personal protective equipment, to comply with COVID-19 federal health and safety guidelines
• Expenditures to suppliers that are essential at the time of purchase to the recipient’s current operations
• Covered operating costs such as software and cloud computing services and accounting needs
• Covered property damage cost related to property damage and vandalism or looting due to public disturbances that occurred during 2020 that was not covered by insurance or other compensation
To be eligible for full loan forgiveness, PPP borrowers will have to spend no less than 60% of the funds on payroll over a covered period of either 8 or 24 weeks — the same parameters earlier PPP funding had when it stopped accepting applications in August 2020.
PPP Loan Forgiveness
The CAA creates a simplified forgiveness application process for loans of $150,000 or less. Specifically, a borrower will receive forgiveness if a borrower signs and submits to the lender a certification that is not more than one page in length, includes a description of the number of employees the borrower was able to retain because of the loan, the estimated total amount of the loan spent on payroll costs, and the total loan amount. The SBA must create the simplified application form within 24 days of the CAA’s enactment and may not require additional materials unless necessary to substantiate revenue loss requirements or satisfy relevant statutory or regulatory requirements. Borrowers are required to retain relevant records related to employment for four years and other records for three years, as the SBA may review and audit these loans to check for fraud.
Additionally, the CAA repeals the requirement that PPP borrowers deduct the amount of any EIDL advance from their PPP forgiveness amount.
End of the Year
Another year is ending and has this year been a doozy! Smith & Associates wants you to know that we are here for you and ready for the upcoming tax season! With so many changes and considerations this year, we hope you have been able to navigate through. Here in the office, we presently remain open BY APPOINTMENT ONLY for drop off and pick-up, with face coverings/mask required. We are following Maine CDC guidelines and regulations. Please follow the link below for more information.
https://www.maine.gov/portal/index.html
For this upcoming tax season, we will be mailing out client organizers within the first two weeks of the New year. This will also include an Extension Policy that would need to be filled out and returned if you are asking Smith & Associates to file an extension for you. The IRS website has provided guidance for people to consider when preparing and gathering information for your 2020 tax return. Please follow the link below to view IRS article.
https://www.irs.gov/newsroom/get-ready-for-taxes-whats-new-and-what-to-consider-when-filing-in-2021
As always, please feel free to reach out to speak with a Tax professional for tax planning or questions.
At Smith & Associates we wish everyone a Happy and Healthy Holiday Season!!
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.