Category Archives: Blog

WZ WEBINAR-Highlights of the Consolidated Appropriations Act, 2021-RECORDING 1/21/2021

Dear Clients, Business Associates and Friends:
In case you missed the webinar on 1/21/2021 you can watch it here.
And pdf’s of the presentation materials is also available below:
HIGHLIGHTS OF THE CONSOLIDATED APPROPRIATIONS ACT, 2021 1.21.21

Forgiveness Reduction Formulas 1-21-21-MASTER

3508 – FOR BORROWERS THAT DO NO QUALIFY TO USE 3508EZ OR 3508S

PPP–Loan-Forgiveness-Application-and-Instructions–Form-3508-1192021

3508-S – FOR BORROWERS IF THE BORROWER RECEIVED A PPP LOAN OF $150,000 OR LESS

PPP–Loan-Forgiveness-Application-Instructions–Form-3508S-1192021

3508-EZ – FOR BORROWERS WHO ARE SELF EMPLYOED WITH NO EMPLOYEES OR FOR BORROWERS WHO DID NOT REDUCE EMPLOYEE WAGES (BY 25%) & HOURS OR BORROWERS WHO REDUCED BUSINESS ACTIVITY DUE TO COVID-19 GUIDELINES & DID NOT REDUCE EMPLOYEE SALARIES BY 25%

PPP–Loan-Forgiveness-Application-Instructions–Form3508EZ-1192021

As always, Wagner & Zwerman are available to answer any of your questions and concerns and we are committed in providing you with the most updated information as it becomes available.
Best,
WZ Partners

 

New Form 1099-NEC Replaces Form 1099-MISC

January 19, 2021
Dear WZ Clients, Business Associates and Friends,
IMPORTANT REMINDER
NEW FORM 1099-NEC REPLACES FORM 1099-MISC BOX 7
 The filing deadline to file Forms 1099 is January 31st. As a reminder, the IRS released a new reporting form, Form 1099-NEC to report nonemployee compensation. In past years, such amounts were reported on Form 1099-MISC, box 7. We urge everyone preparing Forms 1099 to ensure you are properly using form 1099-NEC to report these amounts. Other amounts previously reported on Form 1099-MISC (such as rent payments) will continue to be reported on that form.
For more information, please review the instructions provided by the IRS (https://www.irs.gov/instructions/i1099msc) to confirm payments are properly reported.
Should you need further assistance, please do not hesitate to contact us.
AS ALWAYS, WAGNER & ZWERMAN IS HERE TO ANSWER ALL OF YOUR QUESTIONS AND CONCERNS. WE ARE ALL IN THIS TOGETHER.
STAY SAFE AND HEALTHY
** IF YOU HAVE MISSED ANY PREVIOUS WZ COMMUNICATION IN REGARDS TO COVID-19, PLEASE REFER TO OUR WEBSITE
Best,
WZ Partners

 

Wagner & Zwerman LLP

IRS Delays Start of Tax Season to Feb 12th

January 18, 2021
Dear WZ Clients, Business Associates and Friends,
The IRS is delaying the start of the 2020 tax filing season to Feb. 12, according to an announcement Friday from the agency.
On that date, the IRS will start accepting and processing last year’s tax returns.
Normally, the agency opens tax season in late January.
This year, however, the IRS will need more time to prepare after the COVID relief act that took effect in late December. And yes, the tax filing deadline is still April 15.
“If filing season were opened without the correct programming in place, then there could be a delay in issuing refunds to taxpayers,” the IRS said in its announcement.
“These changes ensure that eligible people will receive any remaining stimulus money as a recovery rebate credit when they file their return,” the agency said.
The recovery rebate credit is a new addition to the federal income tax return, and it’s available to filers who didn’t receive the full amount of stimulus they’re entitled to.
“While I am disappointed that this year’s filing season will begin later than usual, I recognize that the IRS has faced extraordinary challenges throughout the COVID crisis,” said House Ways and Means Committee Chairman Richard Neal, D-Mass.
“It’s a relief to know that despite contending with the distribution of two rounds of economic impact payments, facility closures and other disruptions, the agency will be able to begin accepting returns within the next month,” he said.
The IRS is recommending that taxpayers submit their returns electronically and use direct deposit as soon as they’re ready.
Refunds in March for some
Early filers who claim certain tax credits will be waiting until the first week of March to get their much-needed refund. The IRS said this would still be the case if the filing season opened in late January.
Low-income taxpayers who receive the earned income tax credit or the additional child tax credit generally can’t receive a refund before mid-February.
That’s because an anti-fraud law requires the IRS to use the additional time to review those returns to prevent refunds from being issued to scammers.
The agency expects filers who claim the earned income and additional child tax credits will collect their refunds the first week of March – assuming they file electronically and there are no issues with their returns.
Having your return flagged by the IRS can result in significant delays.
Last year, IRS fraud filters caught 5.2 million returns that were claiming refunds, according to a recent report from the Taxpayer Advocate Service, an IRS watchdog.
For about a quarter of those returns flagged for income verification, refunds took longer than 56 days.
About 2 in 10 of the returns flagged for identity verification had delays of more than 120 days.
Normally, the turnaround time for a refund is about 21 days if a tax return has no problems.
Headaches for tax pros and clients
Companies distribute Form W-2 to their employees in January. These documents spell out how much workers have earned, as well as what they paid in income and payroll taxes during the year.
“You can’t get your refund until the IRS opens filing, and there are people who get refunds who are used to filing as soon as they open up,” said Ed Zollars, CPA and partner at Thomas, Zollars & Lynch in Phoenix and an instructor at Kaplan Financial Education.
Taxpayers who submit their returns in paper format are risking delays. The IRS accumulated a large backlog of mail last year amid the pandemic, and returns have taken a longer time to process.
There were still 7.1 million unprocessed individual returns and 2.3 million processed business returns as of Nov. 24, the Taxpayer Advocate Service found.
“If you, for any reason, think that a paper return makes sense for you, reconsider,” Zollars said.
AS ALWAYS, WAGNER & ZWERMAN IS HERE TO ANSWER ALL OF YOUR QUESTIONS AND CONCERNS. WE ARE ALL IN THIS TOGETHER.
STAY SAFE AND HEALTHY
** IF YOU HAVE MISSED ANY PREVIOUS WZ COMMUNICATION IN REGARDS TO COVID-19, PLEASE REFER TO OUR WEBSITE
Best,
WZ Partners

 

Wagner & Zwerman LLP

New York Will Not Tax Forgivable PPP Loans

January 18, 2021
Dear WZ Clients, Business Associates and Friends,
NEW YORK WILL NOT TAX FORGIVABLE PPP LOANS
Since New York “decoupled” from the federal tax regulations last March (meaning it no longer automatically follows Washington’s tax policy), New York had to separately issue their own regulations on the treatment of forgivable PPP loans.
New York tax department spokesman James Gazzle stated that New York was going to conform to the federal guidelines and not tax forgivable PPP loans. He further stated that the expenses associated with the PPP loans are deductible on the state tax returns.
If you have not already done so, if you have completed your “covered period” and spent the entire PPP loan on qualifying expenses, you should be now be determining if you qualify for forgiveness and contacting your bank or other financial institution that provided the loan about the process of applying for forgiveness. For those taxpayers whose PPP loan exceed $150,000, you can immediately apply for forgiveness. For those taxpayers whose loans were $50,000 or less, you need to wait another week before submitting the application for forgiveness as we are still waiting on the SBA to issue the new one page certification to obtain forgiveness (meaning less paperwork to submit to obtain forgiveness).
As always, WZ is here to assist in the application process to obtain forgiveness on your loans.
AS ALWAYS, WAGNER & ZWERMAN IS HERE TO ANSWER ALL OF YOUR QUESTIONS AND CONCERNS. WE ARE ALL IN THIS TOGETHER.
STAY SAFE AND HEALTHY
** IF YOU HAVE MISSED ANY PREVIOUS WZ COMMUNICATION IN REGARDS TO COVID-19, PLEASE REFER TO OUR WEBSITE
Best,
WZ Partners

 

Wagner & Zwerman LLP

PPP Reopens to Small Lenders on 1/15/21 and all Lenders on 1/19/21

January 14, 2021
Dear WZ Clients, Business Associates and Friends,
The U.S. Small Business Administration, in consultation with the U.S. Treasury Department, will re-open the Paycheck Protection Program (PPP) loan portal to PPP-eligible lenders with $1 billion or less in assets for First and Second Draw applications on Friday, January 15, 2021 at 9 am ET. The portal will fully open on Tuesday, January 19, 2021 to all participating PPP lenders to submit First and Second Draw loan applications to SBA.
AS ALWAYS, WAGNER & ZWERMAN IS HERE TO ANSWER ALL OF YOUR QUESTIONS AND CONCERNS. WE ARE ALL IN THIS TOGETHER.
STAY SAFE AND HEALTHY
** IF YOU HAVE MISSED ANY PREVIOUS WZ COMMUNICATION IN REGARDS TO COVID-19, PLEASE REFER TO OUR WEBSITE
Best,
WZ Partners

 

Wagner & Zwerman LLP

Alert!!! Secure Act

January 13, 2021
Dear WZ Clients, Business Associates and Friends,
ALERT!!!

SECURE ACT ALLOWS FOR QUALIFIED RETIREMENT PLANS TO BE SET UP IN 2021 FOR 2020

When reviewing your business’ 2020 tax position, a tax- deductible retirement plan contribution is an effective way to lower your taxable income. If your business has not already adopted a qualified retirement plan, we wanted to inform you that the SECURE Act has changed the timing rules for the establishment of these plans. You are NOW able to adopt a new qualified plan for the prior calendar year up to your tax filing deadline, and this includes extensions. This change in timing, means there is still time in 2021 to adopt a plan that is effective for 2020 that will enable you to make a contribution that is tax deductible against your 2020 income. WZ is here to assist you so please do not hesitate to call us.
AS ALWAYS, WAGNER & ZWERMAN IS HERE TO ANSWER ALL OF YOUR QUESTIONS AND CONCERNS. WE ARE ALL IN THIS TOGETHER.
STAY SAFE AND HEALTHY
** IF YOU HAVE MISSED ANY PREVIOUS WZ COMMUNICATION IN REGARDS TO COVID-19, PLEASE REFER TO OUR WEBSITE
Best,
WZ Partners

Wagner & Zwerman LLP

NEW WZ WEBINAR SCHEDULED 1/21/21

On Thursday, January 21st at 11:00am, please join Andrew Zwerman, Vince Preto, John Antinore and Kelly Schmidt, Partners at WZ, for an informative webinar on “Highlights for Businesses of the Emergency Corona Virus Relief Act”.
REGISTER HERE
Join Zoom Meeting
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Meeting ID: 858 5889 8692
Passcode: 986256
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AS ALWAYS, WAGNER & ZWERMAN IS HERE TO ANSWER ALL OF YOUR QUESTIONS AND CONCERNS. WE ARE ALL IN THIS TOGETHER.
** IF YOU HAVE MISSED ANY PREVIOUS WZ WEBINARS OR COMMUNICATION IN REGARDS TO COVID-19, PLEASE REFER TO OUR WEBSITE
Best,
WZ Partners

Wagner & Zwerman LLP

SBA Issues Interim Final Rule on PPP

January 8, 2021
Dear WZ Clients, Business Associates and Friends,
SBA Issues Interim Final Rule on Paycheck Protection Program as Amended by Economic Aid Act and Interim Final Rule on Second Draw Loans.
PPP Program as Amended by Economic Aid Act
Interim Final Rule on Second Draw
Further guidance and clarification still to come. Loans could be available sometime next week.
The Second Draw Process will require the borrower to submit an application using form SBA Form 2483-SD – which is not yet available. For loans over $150k, you must submit documentation to prove at least a 25% decline in revenue. You can choose any calendar quarter in 2020 to compare with the same quarter in 2019 or compare the total annual receipts in 2020 to annual receipts in 2019. Loan amounts can be calculated based on either calendar year 2019 or 2020 payroll costs.
We will provide more information as it becomes available.
AS ALWAYS, WAGNER & ZWERMAN IS HERE TO ANSWER ALL OF YOUR QUESTIONS AND CONCERNS. WE ARE ALL IN THIS TOGETHER.
STAY SAFE AND HEALTHY
** IF YOU HAVE MISSED ANY PREVIOUS WZ COMMUNICATION IN REGARDS TO COVID-19, PLEASE REFER TO OUR WEBSITE
Best,
WZ Partners

 

Wagner & Zwerman LLP

Another Forgivable Loan Program for Small Businesses

January 6, 2021
Dear WZ Clients, Business Associates and Friends,
During the summer, there was a little-known clause in the CARES Act that turned into a big savings for many small businesses that received loans from the Small Business Administration. That clause expired in September. But with the new stimulus bill, it’s been resurrected — and significantly enhanced.
If you’re a small business looking for an incredible financing deal, regardless of whether you’ve been affected by the pandemic, then pay attention.
Why? Because the new stimulus bill now forgives up to eight months of principal and interest payments on Section 7(a) and 504 Microloans from the SBA.
“I thought this debt relief program was an opportunity to provide fast, automatic targeted relief to SBA loan holders,” U.S. Sen. Chris Coons (D., Delaware), who was instrumental in creating the initial legislation under the CARES Act and then enhancing it in the new bill, said in a recent podcast interview. “This program is simply the federal government paying a company’s debt service.”
Yes, the government will pay for a portion of your debt. So if you want to take advantage of this unprecedented benefit, you’ll need to become more familiar with the SBA’s Section 7(a) and 504 loan programs.
A Section 7(a) loan, which is received through an SBA lender, is a loan that can be used for working capital, equipment, inventory and business acquisitions. You can borrow up to $5 million at both fixed and variable interest rates as long as you have fewer than 500 employees and less than $7.5 million in average annual receipts. You also have to be a for-profit business based in the United States and not be delinquent on any debt owed to the government. Depending on how you intend to use the funds, your maturities would be 7 to 25 years.
The SBA’s 504 Microloan program is geared more toward economic development and job creation. It’s available to purchase commercial real estate, existing buildings, and equipment that will help grow your business. These loans also have a $5 million limit and have similar requirements as a Section 7(a) loan. However, interest rates for these loans are fixed and maturities are 10 to 20 years depending on the nature of the loan.
If you already have an existing SBA Section 7(a) or 504 Microloan, then you can get up to eight months of forgiveness (three months plus an additional five months if you’re in a hard-hit industry such as food service and accommodation, arts, entertainment and recreation, and education, as well as laundry and personal care services) of principal and interest payments, all capped at $9,000 a month.
If you get a new Section 7(a) or 504 Microloan before Sept. 20, then your first six months of principal and interest (up to $9,000 a month) will also be forgiven.
What’s unique about these loans is that you don’t have to show that your business has been impacted by COVID. And even if you have an existing Paycheck Protection Loan, you can still apply.
Because the loans are offered through SBA lenders, you will still have to go through a due diligence process that will require providing tax returns, a business plan, and your ability to meet the terms of the loans. However, the new law has increased the federal guarantee for the loans, which lowers the risk of these lenders and makes it easier for them to extend financing. The SBA, however, has been given the latitude to change some of the terms of the loans depending on the demand and funds available.
Coons believes that this small-business debt relief program, although it is a small part of the new stimulus bill, will offer $3.5 billion more of debt relief in the coming year. “It’s already delivered $8 billion in support automatically to 320,000 small businesses all over the country,” he said. “Including 900 small businesses in Delaware alone.”
Maybe your small business has been impacted by the pandemic. Or maybe not. For this benefit, it doesn’t matter. For Coons, and others who created this provision, it’s about recovery. Getting forgiveness on loan payments will make it much more affordable to get the financing many small businesses need to invest, hire, and grow as the economy gets back on its feet in 2021.
AS ALWAYS, WAGNER & ZWERMAN IS HERE TO ANSWER ALL OF YOUR QUESTIONS AND CONCERNS. WE ARE ALL IN THIS TOGETHER.
STAY SAFE AND HEALTHY
** IF YOU HAVE MISSED ANY PREVIOUS WZ COMMUNICATION IN REGARDS TO COVID-19, PLEASE REFER TO OUR WEBSITE
Best,
WZ Partners

 

Wagner & Zwerman LLP

SBA Extends COVID-19 EIDL Application through Dec. 31, 2021

January 4, 2021
Dear WZ Clients, Business Associates and Friends,
On December 30, 2020, the U.S. Small Business Administration announced that the deadline to apply for the Economic Injury Disaster Loan (EIDL) program for the COVID-19 Pandemic disaster declaration is extended to Dec. 31, 2021. The deadline extension comes as a result of the recent bipartisan COVID-19 relief bill passed by Congress and enacted by President Trump on Dec. 27, 2020.
To date, the SBA has approved $197 billion in low-interest loans which provides working capital funds to small businesses, non-profits and agricultural businesses to make it through this challenging time.
Following the President’s declaration of the COVID-19 Pandemic, the SBA has approved over 3.6 million loans through our Economic Injury Disaster Loan program nationwide. The EIDL program has assisted millions of small businesses, including non-profit organizations, sole proprietors and independent contractors, from a wide array of industries and business sectors, to survive this very difficult economic environment.
EIDL loan applications will continue to be accepted through December 2021, pending the availability of funds. Loans are offered at very affordable terms, with a 3.75% interest rate for small businesses and 2.75% interest rate for nonprofit organizations, a 30-year maturity, and an automatic deferment of one year before monthly payments begin. Every eligible small business and nonprofit are encouraged to apply to get the resources they need.
About the U.S. Small Business Administration
The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit https://www.sba.gov.
AS ALWAYS, WAGNER & ZWERMAN IS HERE TO ANSWER ALL OF YOUR QUESTIONS AND CONCERNS. WE ARE ALL IN THIS TOGETHER.
STAY SAFE AND HEALTHY
** IF YOU HAVE MISSED ANY PREVIOUS WZ COMMUNICATION IN REGARDS TO COVID-19, PLEASE REFER TO OUR WEBSITE
Best,
WZ Partners

 

Wagner & Zwerman LLP