TAX TIME IS HERE!!!!

Hello;


Good snow day to you, and HAPPY NEW YEAR!!!


It's tax time once again, If you need help with your return we are starting work on them now. Please reach out if you would like tax assistance from our team. If you've used us in the past please let us know that this year you'll still need our assistance with a quick reply to this email.


For getting us docs, please either create a Dropbox and share it with us (or use the one from last year, they don't delete!) or a Google Drive to share documents. Please do not email documents one by one-it's a sure fire way for something to get lost or missed.


If you create a Dropbox or Google Drive be sure to name it with YOUR COMPANY NAME IN THE TITLE. A good template is MY COMPANY TAX DOCS or MY COMPANY BOOKKEEPING DOCS or similar. Please DO NOT name the shared folder TAXES or TAXES 2021-or we will not be able to locate your folder in our long list of shared files.


Let me know if you have any questions, need Dropbox or Drive help, or if you are on an accelerated time line for any reason (refinance, needed financials for an investor, etc.)


Thank you, and here's to an expedient tax season with as little lumps and bumps as possible.


-Katie and the REV ATX team


UPDATES-PPP FORGIVENESS AND EIDL REQUIREMENTS

Hello All;

It's been some time since I've been able to reach out on the latest and greatest updates for the CARES act and all that comes with it.


EIDL LOAN-As many of you know the EIDL has increased their limits and you are now free to apply for more money through that program. Just a quick refresher on what the terms of this loan are:

  • This loan IS NOT FORGIVABLE AND MUST BE PAID BACK

  • 3.75% interest for 30 years

  • Rules for what the money can be used for here: https://bench.co/blog/operations/how-to-spend-eidl-loan/

  • Loans above 25K require a collateral guarantee, meaning the assets of the business are backing the loan https://www.sba.gov/funding-programs/loans/covid-19-relief-options/eidl/covid-19-eidl

  • Loans above 150K require a personal guarantee-this means that they show up as part of your debt to income ratio when applying for other loans

  • The SBA requires hazard insurance on your business assets as well as a "CERTIFICATE OF RESOLUTION" document stating certain facts. I have created a template for this certificate including all required statements-the highlighted areas are where you plug in info for your LLC or entity. Please use this template and save it as your own.

  • Expansion loans have been very slow to show up in bank accounts-Rev has been waiting since April to hear back about our loan. They will get to you, be patient and vigilant

  • If you haven't requested an expansion of this loan you must do so in order to get more money. I have attached my email for expansion on my loan here as a template. Please use this template to facilitate this increase

EIDL TARGETED GRANT- Many of you have been reached out to by the SBA to apply for the EIDL Grant Expansion. Just a quick refresher on what the terms of this grant are:

  • This is a forgiven grant to help those most deeply impacted by the Covid-19 crisis. This money NEED NOT BE REPAID and could be as much as 10K.

  • There are strict rules for who can apply for this loan. https://www.score.org/resource/sba-targeted-eidl-advance-grants-do-you-qualify

  • You must be in a low income area, you must be able to show a reduction of 30% in income over the prior year, and you must have fewer than 300 employees.

  • If you are unsure whether you meet the above requirements please reach out to your bookkeeper for numbers.

  • You should have gotten an email asking you to apply for this expansion-search your inbox for EIDL TARGETED ADVANCE

PPP FORGIVENESS-ROUND ONE

The time has come to apply for ROUND ONE forgiveness. It is likely too soon to apply for ROUND TWO. Please reach out to your bank or lending institution ASAP to apply. We are hearing rumors that if you don't apply by July or August (depending when you got your loan) you may be forbidden from getting forgiveness. THIS IS NOT A DRILL, APPLY FOR ROUND ONE FORGENESS ASAP!!!!

As always, we are here to answer any questions you have on these loans and all things money and bookkeeping related.


--Katie and the REV ATX team

UPDATE - FORGIVENESS, PPP ROUND TWO, AND NEW EIDL

Hello all!

I hope that everything is going well and that you all are staying safe and healthy, and getting vaxxed.

I wanted to update you all on a few things coming down the pike.

FORGIVENESS-

If you haven't yet applied for PPP forgiveness for round one we encourage you to do so now. The application has been simplified and usually takes just a few clicks to complete. Some items to have on hand to submit-

Payroll reports-if you run payroll you may be required to show payroll reports (941, TWC) or payroll expenses from your payroll provider. Most providers have this set up in their systems already, ADP, Gusto, and Paychex all have a simple clickable form that you can download.


Proof of transfers to owners-if you do not have formal payroll you will need to provide proof of draws to owners via your bank statement. If you take draws via electronic transfer you will need to pull your bank statements and highlight the transactions that make up your draws.


If you can prove 100% usage of the loan as payroll or draws then do that-you can extend the time to a 24 week period to maximize the amount of payroll you claim. If you need to pull other expenses then RENT, UTILITIES, PPE and a few other things can be used, more on this is available at our website https://www.revatx.com/home1 in the catalogue of information we've sent out on the CARES ACT.


We will be doing a webinar on 5/28 regarding forgiveness that will be catalogued at our website forever. You can plan to attend this webinar, or you can send questions to me in advance and I'll answer them at the webinar. We will have FAQs up for the webinar in the next couple of weeks. Before booking time to help with forgiveness we will be directing clients to attend the webinar or watch it when they have time to help everyone achieve forgiveness.


PPP ROUND TWO-

Many of you have asked for my assistance on getting a second (or even a first) round of PPP money. Time is running out to secure this money. If you need help you need to let me know in the next two days, or I will not be able to assist. If you have any questions about who is lending or what the criteria are for the second round I encourage you to read through our catalogue of info on this subject here https://www.revatx.com/home1 If you have already asked for my help but you have not heard back please respond to this message. The deadline for PPP submission is 6/30 currently. I'll let y'all know if this changes.


EIDL-

Some of you may have noticed an email encouraging you to apply for more EIDL money, or more of the EID Grant that was done last year. The SBA is currently lending up to half a million dollars through the EIDL for some companies. If you need the money now or want to free up some capital you'll need to ask for that increase and the SBA will reach out with your new loan offer. Instructions for how to do so are in the email from the SBA. These additional monies are at the same great rate and terms as the first round (3.75% for 30 years fixed).
If you got an EID Grant for LESS than 10K and you meet the criteria listed out in the email from the SBA you may also request the rest of that 10K at this time. This is free money, it's not required to pay this money back. Follow the instructions in the email from the SBA to request that additional capital.
As always, let us know if we can help you with any of these items, or anything else business and books related.

Stay safe, y'all.

-Katie and the REV ATX team

UPDATES ON STIMULUS AND TAX DEADLINES

Hey Y'all,

Just wanted to update everyone on taxes, stimulus, and forgiveness.

TAXES

Taxes for Texans have been extended through 6/15 for both payment and filing. This extends some retirement deferrals and IRA due dates as well https://www.irs.gov/newsroom/victims-of-texas-winter-storms-get-deadline-extensions-and-other-tax-relief

REV is behind on filings due to the SNOVID event and helping everyone with filing a second round of PPP and helping with forgiveness. Please let me know if you have any need for a quick turn around on your taxes (like a refinance or similar) so we can prioritize you.

NEW RELIEF BILL

  • Pandemic assistance grants will be made to eligible businesses serving food or drinks, including restaurants and food trucks.

  • There will be additional funding for forgivable loans to eligible businesses under the Paycheck Protection Program (PPP), which is currently scheduled to expire on March 31, 2021.

  • Nonprofit organizations and online news services will receive expanded PPP eligibility.

  • New targeted Economic Injury Disaster Loan grants will be available for eligible small businesses in low-income communities.

  • Targeted Economic Injury Disaster Loans (EIDL) and Restaurant Revitalization Grants received from the SBA will not be subject to income tax, and the exclusion will not result in the denial of a deduction, reduction of tax attributes, or loss of increase in basis.

  • The Employee Retention Tax Credit is extended for eligible employers that continue to pay employee wages during COVID-19-related closures or experience reduced revenue through December 31, 2021. This includes “recovery startup businesses” (those businesses that launched after February 15, 2020, with average annual gross receipts of $1 million or less).

  • Tax credits for paid sick and family leave are modified and extended to September 30, 2021.

  • Several changes were made to help employers meet funding obligations for pension plans.

  • The excess business loss limitation is extended through December 31, 2026.

  • The Section 162(m) limits on the tax deduction that public companies can take for executive compensation is extended to cover the CEO, the CFO and the five next highest paid employees, beginning in 2027.

  • Extends payment deferral for EIDL and PPP until 2022

Learn more about what the bill does for individuals here:

https://www.mlrpc.com/articles/highlights-of-the-american-rescue-plan-act/?utm_source=Maxwell+Locke+%26+Ritter+Newsletter&utm_campaign=53d2fde582-EMAIL_CAMPAIGN_2019_10_25_06_28_COPY_01&utm_medium=email&utm_term=0_8623552f2c-53d2fde582-278651021

FORGIVENESS

It is now time to apply for forgiveness for the first round of PPP loans. I know you are going to want my help, but I am encouraging everyone to TRY to walk through the forgiveness application alone as some banks are VERY user friendly. I will be hosting a live webinar for everyone and walking through the application and taking questions in early April (time/date TBD). I am hoping that everyone who needs help will tune in so we can assist as many folks as possible. Again, if you haven't already, TRY TO WALK THROUGH IT. For folks with loans under 150K it should be fairly easy.

As always, we're here to answer any questions you may have on all things taxes, stimulus and money. My schedule is below for your convenience.

-Katie and the REV ATX Team

SNOWPE UPDATE

Wow, Texans. What a wild ride.


I know many of us have been without water, power, heat, internet and sanity this week. I know many have had damage to their homes and offices, and so we wanted to provide as many resources as possible during this, again, a trying time.


SALES TAX


Extended until March 1, 2021- If we do your sales tax we will still be on time: https://news.bloombergtax.com/daily-tax-report-state/texas-comptroller-extends-due-date-for-tax-fee-payments-due-to-winter-storm-power-outages?utm_source=rss&utm_medium=DSNW&utm_campaign=00000177-b717-dad3-a37f-ffb77b1d0001


STATE OF EMERGENCY


Texas has been declared a state of emergency, and thus we can apply for FEMA benefits for losses to businesses, incolme, and personal property. Here's the link https://www.disasterassistance.gov/ We expect lots of need, so sign up quickly.



INSURANCE CLAIMS


I know navigating insurance claims is tricky and confusing. Let us know if that's something we can help with-your insurance can contain clauses to cover business income losses, as well as contents like plants, landscaping, food that perished in the fridge, etc. There's no harm in asking what is covered and getting the most bang for your coverage in a trying situation like this.


KATIE'S SICK


During all this madness, I have lost my voice. I have a pretty bad chest cold, I think, from the cold, stress, and just plain over it-ness that we are all feeling. IT'S NOT THE RONA. This will mean, unfortunately, that talking to me may be a challenge in the next few days. I am trying to conserve my voice so that I can get back on the phone and answer all your questions on the PPP loans, taxes, etc. Please be patient with me. Jazmin is resetting missed calls right now for the first week of March.


MENTAL HEALTH


I want to encourage everyone to take time for your mental health. I know I'm a bookkeeper, not a therapist, but this year has been a doozy. If you can't get right back to work, or you're feeling overwhelmed, that's okay. Give yourself, and those around you, grace. I encourage everyone to get into some kind of mental health therapy ASAP, whatever that means for you.



SHARE YOUR RESOURCES


As we attempt to keep people as in the loop as possible, we are asking that you forward any and all resources you find for people and businesses in Austin and in Texas as you come across them. I'll try to send a weekly update if I can, but keep checking back. We will be cataloging all our finds here https://www.revatx.com/home1



As always, we appreciate each and every one of you and we are here, in this, with you.


-Katie Heim and the REV ATX Team


-----PPP ROUND TWO------

Hello all!

So the eagle has landed, the new round of PPP is ready to be disbursed.

WHO QUALIFIES?
Folks who did NOT get a first round of money, as well as Nonprofits and businesses impacted by Covid 19 with fewer than 300 employees. You must be able to demonstrate a reduction in income of 25% or more in any quarter in 2020 compared to the same quarter in 2019.


WHO IS LENDING? Larger banks are the ones I've seen opening up their applications. There will be alternate lenders as well, but best bet is to reach out to your bank and see if they can help right away.


HOW DO I KNOW IF I CAN APPLY? Reach out to your bookkeeper and ask them to analyze your reports for you. I have instructed the bookkeepers how to pull this information. Everything you provided for the first round of funding will likely be needed for round two as well (payroll forms for 2019, or a 1040 return to show income). When in doubt, reach out.

We continue to work through 1099s and wrapping up the year. We will begin working on 2020 tax returns in February.


In good health!
-Katie and the REVATX Team

NEW PPP AND LEGISLATION UPDATE

Hello!

We hope this update finds you well, healthy and happy.

I'm sure you've all been following the news and the newest round of Covid stimulus. Here's we know about the PPP new round, mostly stolen from other sites:

WHO CAN APPLY?

  • For first-time borrowers, businesses must have 500 or fewer employees. Borrowers applying for a second PPP loan must have 300 or fewer employees. These thresholds apply to nonprofits, veterans' organizations, Tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors.

  • Please note that certain businesses over the respective employee limit, including franchises and NAICS 72 businesses (Accommodation and Food Services), may still qualify.

  • All borrowers applying for a PPP loan need to meet the SBA’s certification of need requirement, attesting that “current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.”

  • Businesses using a Professional Employer Organization (PEO), or transitioning to a PEO, that meet the eligibility criteria for a loan can apply.

  • (See SBA FAQ #10 for more information)

https://www.adp.com/contact-us/customer-service/paycheck-protection-program.aspx

WHAT'S NOT CLEAR YET?

There is a reduction in income requirement that is unclear at this point. The legislation states that a 25% reduction in any one quarter compared to a quarter in the previous year is required for a second round of funding, but there are many exceptions to this requirement, so I've reached out to my bank to get more clarity.

WE SUGGEST YOU REACH OUT TO YOUR BANK OR LENDING INSTITUTION ASAP TO CLARIFY WHERE YOU ARE AND WHAT FUNDS YOU MAY BE ELIGIBLE FOR.

HOW DOES THIS ROUND DIFFER FROM THE FIRST ROUND?
Some aspects are broadly the same. Applicants have between eight and 24 weeks to use the funds, with at least 60 percent going toward payroll and the rest toward eligible expenses like rent and utilities.

New loans are capped at $2 million, compared to $10 million before. Applicants must have no more than 300 employees, instead of up to 500, and must demonstrate at least a 25 percent drop in revenues from the fourth quarter of 2019 to the same period this year.

WHAT ABOUT MY FIRST LOAN? 

A few weeks ago, the government simplified forgiveness applications for businesses that got less than $50,000, requiring only a description of how much loan money was spent on payroll, and how many employees the recipient was able to retain as a result. The new bill ups that limit to $150,000. Affected businesses will not need to submit documentation supporting their claims, but should keep it on hand in case of an audit down the line. This is why Katie had been suggesting to wait on applying for forgiveness until this legislation passed, as the new applications are very simplified. 

If you’ve already applied for and received forgiveness, none of the new provisions apply — you’re done. But you can try to get a second loan.

https://www.tampabay.com/news/business/2020/12/28/more-ppp-loans-are-coming-heres-how-your-business-can-get-a-second-one/

If you have not gotten a first round loan we strongly encourage you to apply. If you would like a second round and need help, please be in touch with us. Many clients got less than they could have last time due to not having the correct calculations.

As always, we are here to support you during this process. It is also 1099 season and tax season, so please be patient while we work through this new legislation and keep on top of our normal year end tasks.

Happy new year, I can't wait for this one to be done.

-Katie and the RevATX Team