Today TaxMama® wants to let you know that the House and Senate have passed the Paycheck Protection Program Flexibility Act of 2020 (PPPFA).
Dear Family,
The latest Bill is heading for the President’s desk today. Believe it or not, it’s only 9 pages long.
The PPPFA increases the time to pay back the loan to 5 years, from 2.
You can still get the loan forgiven if only 60% of the funds are used for payroll instead of 75% .
Best of all, you have 24 weeks to use up the loan money, instead of 8 weeks – or up to the end of 2020. (This is specially to accommodate restaurants and other industries that were barred from opening so far.)
The bill revises the deferral period for paycheck protection loans, allowing recipients to defer payments until they receive compensation for forgiven amounts. Recipients who do not apply for forgiveness shall have 10 months from the program’s expiration to begin making payments. (Not clear on what that date is.)
Businesses with loans that are forgiven are permitted to delay paying their payroll taxes, just like everyone else. (Removed that provision from the CARES Act.)
The bill extends the period in which an employer may rehire or eliminate a reduction in employment, salary, or wages that would otherwise reduce the forgivable amount of a paycheck protection loan.
You can read more of the details here – https://www.congress.gov/bill/116th-congress/house-bill/7010
While I may not understand all the nuances, we will be getting more details and clarification in the next few days – from the experts.
In other news
1040X – the IRS opened up electronic filing for amended individual tax returns (1040X) – but only for 2019 returns. That should reduce some of the paper flood of corrections people want to file this ear.
Plain-Wrapped Stimulus Debit Cards – The IRS is sending out stimulus money to millions of people in plain white envelopes containing a debit card. You will have to go online to activate it. Yes, some people have already started shredding them, thinking they are junk mail. Read the guidance here on how to recognize them and what to do if you inadvertently tossed or shredded your card.
Reminder – Some Helpful IRS Links
Which IRS services are open and available – keep an eye on this link
https://www.irs.gov/newsroom/irs-operations-during-covid-19-mission-critical-functions-continue
IRS Electronic Options
https://www.irs.gov/newsroom/irsgov-helps-taxpayers-get-tax-information-they-need-find-tools-for-filing-paying-checking-accounts-and-answering-questions
IRS Online Assistance Available
https://www.irs.gov/newsroom/irs-urges-taxpayers-to-use-electronic-options-outlines-online-assistance
Dealing with audit or collections issues – IRS is keeping this page up to date
https://www.irs.gov/newsroom/irs-unveils-new-people-first-initiative-covid-19-effort-temporarily-adjusts-suspends-key-compliance-program
Of course, all the filing and paying deadlines – including taxpayers overseas whose June 15th filing deadline has been pushed back to July 15th.
https://www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers?
And a great chart: How to Use the Tools on IRS.gov to Get Your Economic Impact Payment
https://www.irs.gov/newsroom/how-to-use-the-tools-on-irsgov-to-get-your-economic-impact-payment
There are lots more things going on – watch the information in the IRS Newsroom –
https://www.irs.gov/newsroom and TaxMama.com
And remember, you can find answers to all kinds of questions about taxes and business issues, and Enrolled Agent tax education, free. Where? Where else? At www.TaxMama.com .
Incidentally, I don’t know if you know – TaxMama.com® is a free resource for people to get answers to tax questions BEFORE they make major, costly moves.
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