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.
Some stimulus checks are being sent by prepaid debit cards. They will arrive in a plain envelope from “Money Network Cardholder Services.” Please follow the link below for additional information.
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.
- 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
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.
Unemployment is opening May 1, 2020 at 8 a.m. for self-employed individuals. Follow the link below to see full details on Maine.gov.
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 firstname.lastname@example.org and phone 207-846-8881.
Also known as Stimulus Payments, the below link will take you to the most up to date information from irs.gov.
The IRS has updated guidance related to the rebates under the CARES Act. Payments will be made initially based on a qualifying individual’s most recently filed tax return (2018 or 2019). The payment is an advance on a refundable credit on your 2020 return. Individuals who otherwise do not qualify for the credit based on phase out limits on their 2018 or 2019 return may find that income on their 2020 return results in receiving the rebate when they file in 2021.
Rebates equal $1,200 per qualifying individual plus $500 for each qualifying child (generally children under 17 who qualify for the child tax credit). Phase outs begin when AGI exceeds: $75,000 for individuals; $112,500 for head of household; and $150,000 for joint filers.
Additional information is available at the IRS website including updates for how to change your direct deposit information or payment method.
This is a must read for any small business owner! Click on link below:
Gov. Janet Mills said Thursday that Maine’s income tax return filing deadline will be extended to July 15, 2020. The new deadline applies to any final and estimated Maine income tax payments that were due by April 15th. Any failure-to-pay penalties and interest will be abated for the period of April 16 through July 15.
The links below are regarding the CARES Act, H.R. 748:
As changes are happening quickly, we will update you with relevant information as it becomes available. We wish health and safety during this time, and know we will get through this!