Accounting and Tax Updates

Get the latest tax and accounting news and updates for small business owners and individuals.

Key provisions of the Republican plan:

  • Unemployment extension based on ‘70% wage replacement’ (current benefit is $600 per week)
  • A targeted additional round of the PPP for businesses whose revenues are down more than 50%
  • Tax credits to encourage businesses to hire workers
  • Direct payments to individuals (second stimulus payment)

Form 8300 – Is Your Business Filing the Proper Cash Transaction Forms?Any person in a trade or business who receives more than $10,000 in cash in a single transaction or in related transactions must file a Form 8300. If you are required to file Form 8300, you must do so by the 15th day after the date the cash transaction occurred. A person can file Form 8300 electronically or by mailing the form to the IRS.

Stimulus Payments Update

Senate Majority Leader Mitch McConnell confirmed Republican lawmakers’ support for a second round of stimulus checks. It’s not clear if the next round of checks and income restrictions will be the same as the first direct payments.

PPP Loan Updates

Mnuchin suggested that the second round of PPP loans should have some sort of “revenue test” to make sure the remaining funds go to businesses that need it the most.

PPP Loan Forgiveness Update

Mnuchin said policymakers should consider blanket forgiveness for all smaller businesses that received PPP loans.

Deadline to file and pay 2019 taxes is July 15. Taxpayers can request extension to file. However, an extension to file doesn’t grant extension to pay. If you’re filing an extension, you still need to estimate any taxes you may owe and pay them by the regular deadline to avoid possible penalties.

IRAs contributions made by the postponed tax return due date of ‪July 15, 2020‬ are deductible on a 2019 tax return.

PPP loan Updates

The June 30 deadline for applying for the PPP loan has been extended to Aug. 8. Small businesses now have more time to take advantage of PPP loan.

PPP loan Updates

U.S. Senators introduced an ACT that would forgive PPP loans of $150,000 or less if the borrower submits a one-page attestation form to the lender.This Act has not been approved yet.

PPP loan Updates

The House voted to extend deadline to Aug 8 to apply for PPP loans, sending the bill to President Donald Trump.

The Texas Workforce Commission will pause work search requirements for now. The requirement of actively searching for employment in order to continue receiving unemployment benefits was set to resume next week, on July 6. It will be revisited at the end of July.This also means that if you’re receiving unemployment, you’re not required to do anything aside from submitting a payment request.

A Texas man is facing federal charges for allegedly scamming the government out of $1.5 million in COVID-19 payroll grants and using it to buy a Tesla.He is accused of lying about the number of employees at in order to fraudulently collect Paycheck Protection Program grants. He spent $60,000 of the payroll grants on a Tesla, and put more than $500,000 in his E-Trade account. He has been arrested and charged with wire fraud.

TABC announced that It has suspended alcohol permit for two Houston-area bars for violating social distancing rules. According to TABC, it has the authority to suspend any license that poses a threat to the public welfare. The first infraction will result in up to a 30-day license suspension, and the second will result in up to a 60-day suspension.

Texans receiving unemployment benefits will once again have to prove they have searched for jobs or tried to reopen their businesses if they want to continue receiving aid starting July 6th.

Hilton Hotels lays off 2,100 employees of its corporate workforce and extending the existing furloughs for many of its corporate staff for an additional 90 days.

IRS postponed the tax filing and payment deadline to July 15. Those who need more time to file beyond the postponed date, can request an extension to file. Taxpayers must request an extension to file by July 15. This gives them until October 15 to file their tax return. Note that an extension to file is not an extension to pay. Taxes must be paid by July 15.

Top Trump advisor said that the $600 boost in weekly unemployment payments would expire in late July.

It takes about $500,000 per year to enter the top 1% of Americans.

PPP Loan Update

$130 Billion is still left in PPP funds. Deadline to apply for the a PPP loan is June 30, 2020.

Coronavirus pandemic is reshaping retail industry. Zara to close 1,200 store, 16% of its global outlets, permanently and will focus on selling online. Zales, Jared, and Kay Jewelers also plan to close about 400 stores.

Government Stimulus Programs

Expiration dates

  • June 30: Last day to apply for and receive a PPP loan
  • July 31: Unemployment benefit availability
  • Foreclosure Proceedings: Blocked for at least 60 days starting Mar 18
  • Mortgage Forbearance: Up to 180 days

EIDL Loan Info:

The SBA Economic Injury Disaster Loan (EIDL) is intended to help small businesses overcome the temporary loss of revenue due to effects of the Coronavirus (COVID-19). The proceeds of the loan can be used for working capital expenditures including the costs related to continuation to health care benefits, payroll, rent, utilities, and payments of interest on any mortgage obligation.

PPP Loan Update:

The Senate passed a bill to make changes to PPP loan program. President Trump is expected to sign it into law.

Some key changes:

1) The bill extends the eight-week period to use the fund to 24 weeks.

2) The bill would also change so-called 75/25 rule. The new ratio would be to use at least 60% of PPP loan on payroll and no more than 40% on other costs.

3) The bill would also allow businesses that receive loan forgiveness under the PPP to defer payroll taxes.

4) The bill extends time allowed for businesses to restore their workforce back to pre-pandemic levels.

Congress is moving closer to a decision on a second stimulus package. Congress is likely to decide this month if it will begin work on a second financial rescue package to help individuals affected by the COVID-19 pandemic.  If it passes, the package could be the last relief check coming to Americans.

PPP Loan News:

The House passed a bill to make changes to PPP loan program. (It will now go to Senate for approval).

Key changes:

1) The bill extends the eight-week period to use the fund to 24 weeks.

2) The bill would also change so-called 75/25 rule. The new ratio would be to use at least 60% of PPP loan on payroll and no more than 40% on other costs.

3) The bill would also allow businesses that receive loan forgiveness under the PPP to defer payroll taxes.

Mortgage applications to purchase a home rose 9% last week from the previous week. That is the sixth consecutive week of gains and a 54% jump since early April.

Many people are waiting weeks to get their tax refunds this year. Usually it takes 3 weeks to get refunds.

Looking to buy a car? Rental car companies struggling amid pandemic expected to sell them at huge discounts.

Shopify will allow its 5,000 employees to work from home indefinitely.

The World’s 25 Richest Billionaires Have Gained Nearly $255 Billion In Just Two Months.

Congress could extend coronavirus small business loan forgiveness timeline to 12 weeks, Mnuchin says.

Trading stocks was among the most common uses for the government stimulus checks.

COVID-19 pandemic is reshaping the workplace. Facebook said up to half of employees could work remotely within 5 to 10 years.

More than 43 million people have filed for unemployment benefits since the start of the pandemic. That’s 1 in 4 US workers.

American billionaires got $434 billion richer during the pandemic. Jeff Bezos added $34.6 billion to his wealth and Mark Zuckerberg added $25 billion.

Read more.

PPP Loan News:

Treasury Secretary Mnuchin said employees who don’t go back to work stand to lose their unemployment benefits under the Paycheck Protection Program, which helps businesses cover employee salaries.

PPP Loan Update:

As of May 19th, 4.2 million small businesses have received $530 billion in PPP loans.

PPP Loan News:

Restaurants want an extension to the amount of time they could spend the loans granted through the Paycheck Protection Program — from eight weeks to 24 weeks. Under the existing rule, restaurants must rehire all of their employees within eight weeks for the loans to be forgiven.

Due to $600 a week unemployment benefit provided by CARES Act, unemployed Americans are now getting an average weekly benefit of about $1,000. Unemployment benefit is considered taxable income and recipient will have to pay federal and state income taxes.

PPP Loan Update:

IRS states that expenses that are paid by PPP forgiven amount are not currently tax deductible. Lawmakers are working to make them tax deductible.

PPP Loan Update:

Loan forgiveness application along with instructions is now available.
Click here for PPP forgiveness application.

Stimulus Proposal:

If the latest stimulus proposal by Democrats passes, taxpayers could see unlimited State and Local Taxes deductions for the 2020 and 2021 tax years.

PPP Loan Update:

SBA is extending the repayment date to May 18, 2020, to give borrowers an opportunity to review and consider borrowers’ required good-faith certification concerning the necessity of their loan request. Borrowers do not need to apply for this extension. This extension will be promptly implemented through a revision to the SBA’s interim final rule providing the safe harbor.

PPP Loan Update:

Any borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith.

SBA has determined that this safe harbor is appropriate because borrowers with loans below this threshold are generally less likely to have had access to adequate sources of liquidity in the current economic environment than borrowers that obtained larger loans.

In addition, given the large volume of PPP loans, this approach will enable SBA to conserve its finite audit resources and focus its reviews on larger loans, where the compliance effort may yield higher returns

PPP Loan Update:

Remember that the forgiveness of the PPP loan is not automatic; the borrower must apply to the lender for forgiveness and provide supporting documentation.

2020 Texas Franchise report and payment due date extend to July 15 from May 15.

The Trump administration is reportedly considering letting workers take Social Security benefits early in exchange for lower payments later.

Democrats propose a second round of direct payments of $1,200 per person and an extension of $600/w unemployment through Jan ’21

The IRS has set a noon deadline on Wednesday, May 13, for eligible recipients of stimulus money to provide bank account information online to get direct deposit.


If I laid off workers, do I need to rehire the same employees to meet the payroll requirement?

No. Your PPP lender will not check to see if you hired the same employee, but simply that your payroll amount is the same or greater than the average upon which the loan amount was based.

PPP Loan Update:

SBA reminded borrowers to review carefully the required certification on the Borrower Application Form that “current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” SBA guidance and regulations provide that any borrower who applied for a PPP loan prior to April 24, 2020 and repays the loan in full will be deemed by SBA to have made the required certification in good faith.

SBA is extending the repayment date to May 14, 2020. SBA intends to provide additional guidance on how it will review the certification prior to May 14, 2020.