Important Deadlines for Your Consideration
01/27/2022
Final Deadline Fast Approaching for PPP Loan Forgiveness Application!
PPP borrowers have an important deadline to meet if they haven’t met it already. A little refresher on the guidelines. If a PPP borrower in 2021 did not apply for forgiveness within 10 months after the last day of the “covered period” (8 to 24 weeks following disbursement), PPP loan payments will no longer be deferred, and the business must begin making payments to its lender. The “last 10-month period” is coming to an end on March,15 2022 for borrowers.
Borrowers apply for forgiveness by filing forms with their lenders, who’ll then submit the forms to the SBA. The specific type of form needed to be filed is dependent on the amount of the loan and the type of business entity.
If the SBA doesn’t forgive a loan or forgives only part of it, the lender will notify the borrower when the first payment is due. Interest accrues during the time from disbursement of the loan proceeds to SBA remittance to the lender of the forgiven amount, and the borrower must pay the accrued interest on any amount not forgiven. After consulting with area lenders, it appears that unforgiven PPP loans will begin to be converted to permanent financial loans quickly behind the March 15th deadline with the first payment due shortly thereafter.
Businesses nearly always have a lot on their plates, so it’s not surprising that some might not have been laser-focused on the various dates relevant to their PPP loans. Now is the time to ensure that you file your forgiveness application and have the necessary documentation gathered to survive the SBA audit that may follow. Contact your lender today for more information.
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Economic Impact Payment Letter Can Help People Claim Their 2021 Recovery Rebate Credit
WASHINGTON — The Internal Revenue Service recently announced that it will begin issuing Letter 6475, Your Third Economic Impact Payment, to EIP recipients in late January. This letter will help Economic Impact Payment recipients determine if they are entitled to and should claim the recovery rebate credit on their 2021 tax returns when they file in 2022.
Letter 6475 only applies to the third round of Economic Impact Payments, which were issued in March through December of 2021. The third round of Economic Impact Payments, including "plus-up" payments, were advance payments of the 2021 recovery rebate credit that would be claimed on a 2021 tax return. Plus-up payments were additional payments the IRS sent to people who received a third Economic Impact Payment based on a 2019 tax return or information received from the Social Security Administration, Railroad Retirement Board or Veterans Affairs. Plus-up payments were also sent to people who were eligible for a larger amount based on their 2020 tax return.
Most eligible people already received the payments. However, people who are missing stimulus payments should review information on IRS.gov to determine their eligibility and whether they need to claim a recovery rebate credit for 2020 or 2021. This includes people who don't normally need to file a tax return.
The Economic Impact Payment letters include important information that can help people quickly and accurately file their tax return. These letters should be included with your other important tax documents when filing.
More information about the 2021 advance child tax credit, Economic Impact Payments and other COVID-19-related tax relief is available on IRS.gov.
Information provided by the Internal Revenue Service Newswire, 1-05-22
Keith Raynor; ASAC Member
Keith@trpsumner.com
More information available at www.tpsumner.com
Posted by Don Tyler
Final Deadline Fast Approaching for PPP Loan Forgiveness Application!
PPP borrowers have an important deadline to meet if they haven’t met it already. A little refresher on the guidelines. If a PPP borrower in 2021 did not apply for forgiveness within 10 months after the last day of the “covered period” (8 to 24 weeks following disbursement), PPP loan payments will no longer be deferred, and the business must begin making payments to its lender. The “last 10-month period” is coming to an end on March,15 2022 for borrowers.
Borrowers apply for forgiveness by filing forms with their lenders, who’ll then submit the forms to the SBA. The specific type of form needed to be filed is dependent on the amount of the loan and the type of business entity.
If the SBA doesn’t forgive a loan or forgives only part of it, the lender will notify the borrower when the first payment is due. Interest accrues during the time from disbursement of the loan proceeds to SBA remittance to the lender of the forgiven amount, and the borrower must pay the accrued interest on any amount not forgiven. After consulting with area lenders, it appears that unforgiven PPP loans will begin to be converted to permanent financial loans quickly behind the March 15th deadline with the first payment due shortly thereafter.
Businesses nearly always have a lot on their plates, so it’s not surprising that some might not have been laser-focused on the various dates relevant to their PPP loans. Now is the time to ensure that you file your forgiveness application and have the necessary documentation gathered to survive the SBA audit that may follow. Contact your lender today for more information.
= = = = =
Economic Impact Payment Letter Can Help People Claim Their 2021 Recovery Rebate Credit
WASHINGTON — The Internal Revenue Service recently announced that it will begin issuing Letter 6475, Your Third Economic Impact Payment, to EIP recipients in late January. This letter will help Economic Impact Payment recipients determine if they are entitled to and should claim the recovery rebate credit on their 2021 tax returns when they file in 2022.
Letter 6475 only applies to the third round of Economic Impact Payments, which were issued in March through December of 2021. The third round of Economic Impact Payments, including "plus-up" payments, were advance payments of the 2021 recovery rebate credit that would be claimed on a 2021 tax return. Plus-up payments were additional payments the IRS sent to people who received a third Economic Impact Payment based on a 2019 tax return or information received from the Social Security Administration, Railroad Retirement Board or Veterans Affairs. Plus-up payments were also sent to people who were eligible for a larger amount based on their 2020 tax return.
Most eligible people already received the payments. However, people who are missing stimulus payments should review information on IRS.gov to determine their eligibility and whether they need to claim a recovery rebate credit for 2020 or 2021. This includes people who don't normally need to file a tax return.
The Economic Impact Payment letters include important information that can help people quickly and accurately file their tax return. These letters should be included with your other important tax documents when filing.
More information about the 2021 advance child tax credit, Economic Impact Payments and other COVID-19-related tax relief is available on IRS.gov.
Information provided by the Internal Revenue Service Newswire, 1-05-22
Keith Raynor; ASAC Member
Keith@trpsumner.com
More information available at www.tpsumner.com
Posted by Don Tyler
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