HSC CORONAVIRUS C
OMMUNICATION
Edition #38
March 31, 2021
|
|
|
HSC COVID-19 Fast Response Team
We are here to help!
In these uncertain times with multimedia channels reporting conflicting and sometimes incorrect information, our firm is working to add clarity to this situation by providing new and verified information as it becomes available to us. We have also set up a
Coronavirus Resource Center on our website for ongoing information.
In addition, we have created the HSC COVID-19 Fast Response Team to serve our clients in addressing the difficult decisions they are being faced with on a daily basis. This dedicated multi-disciplinary team consists of our tax, payroll, HR, capital markets and accounting professionals.
If you have questions or would like to speak with this team, please contact your HSC team member or
Kyle Wininger,
CPA, CICA, CVA, CFE at
kwininger@hsccpa.com.
|
|
Biden Signs PPP Deadline Extension Into Law
The Paycheck Protection Program (PPP) application deadline formally changed from March 31 to May 31 on Tuesday when President Joe Biden signed the extension into law. This extension extends the filing deadline for PPP applications by 60 days and provides an additional 30 days for the SBA to finish processing applications received by May 31. From the program’s opening on Jan. 11 through March 21, the SBA has approved more than 3.1 million loans totaling nearly $196 billion. At the current lending rate, the PPP should have enough funding to last through mid-April.
This extension of time may also allow some new PPP 1st draw borrowers in 2021 to have enough time to spend all of their round one funds and reapply for a PPP 2nd draw before the program expires or runs out of funds.
The full article can be found here.
https://www.journalofaccountancy.com/news/2021/mar/senate-passes-ppp-application-deadline-extension.html
For more information please contact Scott Touro, MBA at
stouro@hsccpa.com
|
|
Restaurant Revitalization Fund & System of Award Management
The program falls under the American Rescue Plan Act of 2021 and has $28.6 billion in designated funding. It does not have an operational date, but industry groups are now reporting an early April 2021 timeframe (as opposed to May/June 2021).
Overall, the guidance for this program is still limited to the statutory language and we expect to see additional guidance soon.
Here are some key takeaways of the Restaurant Revitalization Fund:
-
Purpose: To provide relief for many food and beverage providing businesses recovering from the 2020 impact of the COVID-19-pandemic and to make it through the coming months as states fully reopen and vaccine distribution continues to increase.
-
Eligible Entity: A restaurant, food stand, food truck, food cart, caterer, saloon, inn, tavern, bar, lounge, brewpub, tasting room, taproom, licensed facility or premise of a beverage alcohol producer where the public may taste, sample, or purchase products, or other similar place of business with no more than 20 locations and does not have a pending application/received the Shuttered Venue Operator Grant.
-
Amount of Grant: Equal to the pandemic-related revenue loss by subtracting 2020 gross receipts from 2019 gross receipts, less any funding received from any Paycheck Protection Program (PPP) loan(s). Total grant amount will not exceed $10 million and is limited to $5 million per physical location.
-
Grant Funds have to be used on the following Eligible Expenses (or returned):
-
Payroll costs, as defined under the PPP, except for qualified wages considered in determining the Employee Retention Credit.
-
Mortgage principal/interest payments, rent payments.
-
Utilities and maintenance expenses, including construction to accommodate outdoor seating and walls, floors, deck surfaces, furniture, fixtures, and equipment.
-
Supplies, including protective equipment and cleaning materials.
-
Food and beverage expenses that are within the scope of normal business practice.
-
Priority Awards: In the initial 21-day period that grants are awarded, Congress instructs the Small Business Administration (SBA) to prioritize grants to: women-owned businesses, veteran-owned businesses, or socially and economically disadvantaged small business concerns.
-
Tax Exempt: The grant is exempt from federal taxation and no expenses are disallowed as a result of the use of the grant funding.
In order to prepare for the Restaurant Revitalization Fund grant application, experts are recommending entities register with the government using the System of Award Management (SAM)*, if they are not already. Here are the three steps below:
-
Create a
login.gov user account, which will help with correspondence with the SBA.
-
Sign-up to receive a DUNS number. The DUNS number assignment is free and is required for all entities applying for federal contracts or grants. It can take 1-2 days to process.
-
Using your
login.gov account, DUNS number, and standard Taxpayer Identification Number / Taxpayer Name, register with SAM. It can take up to 2 weeks to be set up on SAM.
*These requirements may be relaxed by the SBA, but the SBA has not officially released.
For more information contact Ashley Schultz, CPA at
aschultz@hsccpa.com or Shannon Brewer, CPA at
sbrewer@hsccpa.com.
|
|
IRS Extends Additional Tax Deadlines for Individuals to May 17
The Internal Revenue Service announced that individuals have until
May 17, 2021 to meet certain deadlines that would normally fall on April 15, such as making IRA contributions and filing certain claims for refund.
This follows a
previous announcement from the IRS on March 17, that the federal income tax filing due date for individuals for the 2020 tax year was extended from April 15, 2021, to May 17, 2021.
Notice 2021-21 PDF provides details on the additional tax deadlines which have been postponed until
May 17.
Time to make contributions to IRAs and health savings accounts extended
to
May 17
In extending the deadline to file Form 1040 series returns to May 17, the IRS is automatically postponing to the same date the time for individuals to make 2020 contributions to their individual retirement arrangements (IRAs and Roth IRAs), health savings accounts (HSAs), Archer Medical Savings Accounts (Archer MSAs), and Coverdell education savings accounts (Coverdell ESAs). This postponement also automatically postpones to May 17, 2021, the time for reporting and payment of the 10% additional tax on amounts includible in gross income from 2020 distributions from IRAs or workplace-based retirement plans. Notice 2021-21 also postpones the due date for Form 5498 series returns related to these accounts to June 30, 2021.
2017 unclaimed refunds – deadline extended to May 17
For tax year 2017 Federal income tax returns, the normal April 15 deadline to claim a refund has also been extended to May 17, 2021. The law provides a three-year window of opportunity to claim a refund. If taxpayers do not file a return within three years, the money becomes property of the U.S. Treasury. The law requires taxpayers to properly address, mail and ensure the tax return is postmarked by the May 17, 2021, date.
Additionally, foreign trusts and estates with federal income tax filing or payment obligations, who file Form 1040-NR, now have until May 17, 2021.
2021 AFSP deadline postponed to May 17
Tax preparers interested in voluntarily participating in the Annual Filing Season Program (AFSP) for calendar-year 2021 now have until May 17, 2021 to file their application with the Internal Revenue Service. The normal due date is April 15.
Details on this extension are in Notice 2021-21, posted on IRS.gov. For more information about the
Annual Filing Season Program, visit the
Tax Pros page on IRS.gov.
Estimated tax payment due April 15
Notice 2021-21, issued today does not alter the April 15, 2021, deadline for estimated tax payments; these payments are still due on April 15. Taxes must be paid as taxpayers earn or receive income during the year, either through withholding or estimated tax payments. In general, estimated tax payments are made quarterly to the IRS by people whose income isn't subject to income tax withholding, including self-employment income, interest, dividends, alimony or rental income. Most taxpayers automatically have their taxes withheld from their paychecks and submitted to the IRS by their employer.
For more information contact your HSC client server.
|
|
|
|
Harding, Shymanski & Company, P.S.C. is a public accounting firm with offices in Evansville, Indiana, and Louisville, Kentucky. We are one of the largest accounting firms in Southern Indiana and Kentucky, providing experienced professionals who look beyond the numbers to the heart of complex issues. Our clients range in size from small proprietorships to billion-dollar corporations, from closely-held and family-owned businesses to publicly traded firms, and span nearly every industry. They all have one thing in common: they count on our expertise to capitalize on their opportunities and make the best of their challenges.
|
|
|
Evansville Office
21 SE Third Street
Suite 500
Evansville, IN 47708
(812) 464-9161
|
|
|
Louisville Office
545 S Third Street
Suite 102
Louisville, KY 40202
(502) 584-4142
|
|
|
As a reminder, you are receiving this email because you are a valued client of Harding, Shymanski & Company, P.S.C. For more information on our company, please
visit our website.
Harding, Shymanski & Company, P.S.C
Office locations
|
|
|
|
|