According to SBA, PPP recipients can early apply for loan forgiveness. The new interim final reflects that a borrower can submit the loan forgiveness application form any time and no need to wait until the covered period ends. A borrower may submit a loan forgiveness application any time on or before the maturity date of the loan – including before the end of the covered period – if the borrowers have used all of the loan proceeds for which the borrower is requesting forgiven

On Saturday, July 4, 2020, President Donald Trump signed a new law extending the deadlines for applying for the Paycheck Protection Program (PPP) loan from June 30 to August 08, 2020. Besides the PPP application date extension, there are some other updates: 1. For people who received the loan before June 05, 2020, you can choose the applicable covered period for your loan (8 weeks or 24 weeks). 2. For people who received the loan after June 05, 2020, you are required to use a

The IRS has issued the 2018 optional standard mileage rates and starting on January 1, 2018, the standard mileage rates for the use of a car, van, pickup or panel truck will be: 54.5 cents per mile for business miles driven (up from 53.5 cents in 2017) 18 cents per mile driven for medical or moving purposes (up from 17 cents in 2017) 14 cents per mile driven in service of charitable organizations (currently fixed by Congress) 25 cents per mile is the depreciation on the

Bonuses are considered excellent way to motivate employees and reward top performers; however, they can also quickly change one’s tax return and the amount of taxes initially withheld depending on the payout. IRS regards bonuses as supplemental wages, which are not regular wages. For more details, see Publication 15 (2017), (Circular E), Employer’s Tax Guide for the tax year in question. There are two ways of withholding taxes from bonus: The aggregate method: is used when

Business filing deadlines depend on a number of variables including the business structure the company uses. A non-calendar year fiscal year also impacts the due date. Therefore, business tax filings due dates can vary widely. However, the initial due date for most business tax returns is March 15 or April 15. Sole Proprietors and Single Member LLCs Sole proprietors and single member LLCs that use the default disregarded entity status must complete Schedule C or Schedule E

It is essential that business owners correctly determine whether the individuals providing services are employees or independent contractors. Basically, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. You do not generally have to withhold or pay any taxes on payments to independent contractors. Before you can determine how to treat payments you make for services, you must first know

To be qualified for deduction, business meal and entertainment expenses must be directly associated with the active conduct of a trade or business, the production or collection of income. People must be able to prove: The amount of the expenditure The time, date, and place of the expense The purpose of the business discussion The identification of the people who participated It can be challenging; however, to understand which meals and entertainment are a valid deduction

If you are in business, whether self-employed or running a company, you must send a 1099 form (with copies to the IRS) to anyone that you pay money to, unless the payments meet one or more of the following exceptions: - The recipient is a corporation. - You included the payment in a W-2 form (to an employee). - The payment is for a tangible product (office supplies, computers, etc). - The total payments during the calendar year were less than $600. To make sure that you are

IRS has published “ Notice 2014-21 ” describing how existing general tax principles apply to transactions using virtual currency. Here are a handful of primary contents of this notice. 1. For federal tax purposes, virtual currency is treated as property. General tax principles applicable to property transactions apply to transactions using virtual currency. 2. Under currently applicable law, virtual currency is NOT treated as currency that could generate foreign currency g

“Audit-proofing” your return means documenting deductions so that you can prove them if you’re audited. Today’s historically low audit rates make it pay to be aggressive. But you should file your return as if you expect to be audited. That way, if it happens, you can support your deductions and walk away a winner. The IRS generally doesn’t require records in specific forms (except for travel, entertainment, automobiles, and gifts- 1). To verify expenses, you need to show wha