Will the stimulus payment impact my refund next year? The stimulus payment is an advance of a new/additional credit, it will not reduce the normal amount you would receive as a tax refund. What happens if your income increases and you qualify for less? You will not have to pay back the difference (only those who are ineligible in the first place are asked to return payments). The payments are also not taxable, so the only way they can affect your 2020 taxes is if you did not receive the full amount you were entitled based on 2020 income. Did you receive a stimulus payment in error? In recent weeks we have received calls from clients regarding stimulus checks that have been sent in error. The IRS recently issued guidance on how to Read More...
Mid-Year FSA and Health Coverage Changes Now Allowed
The IRS announced on 5/12/2020 in Notice 2020-29 that due to COVID-19, they are allowing employers the option to offer increased flexibility with respect to mid-year elections under a Section 125 cafeteria plan during calendar year 2020. The Section 125 cafeteria plan is related to employer-sponsored health coverage, health Flexible Spending Arrangements (health FSAs), and dependent care assistance programs. An employer must amend their Section 125 documents to allow this change if they choose to adopt it. What does this mean for employees? The method of estimating the amount of money you want to save in an FSA (which has historically been effective) for many contributors has shifted. Due to childcare needs being adjusted, and Read More...
PPP Loans – Necessity Certification
The Paycheck Protection Program (PPP) was quickly executed, and with new FAQ’s and Interim Final Rules out on a regular basis, it feels as though the rules are still being written. Many of you that have applied for or received PPP loans are now moving into the documentation and forgiveness portions of the process. Though some parts of the application and forgiveness processes have been clarified, others remain unclear. More recently, there’s been confusion about whether businesses should return the funds to avoid fraud charges—and what fraud even means for businesses with PPP loans. All PPP loan applicants are required to make a “necessity certification,” certifying in good faith that “current economic uncertainty makes this loan Read More...
Farm Loan Flexabilities Through the USDA
If your farm has been affected by COVID, we want you to know that the USDA is providing loan alternatives. At Christianson, our mission is to share knowledge to help you succeed. The U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) is reminding producers that FSA offers farm ownership and farm operating loans to agricultural producers who may not find success obtaining loans from their traditional financial institutions because of COVID-19. Farmers who cannot obtain commercial credit from a bank can apply for FSA direct or guaranteed loans. Below you'll find additional Farm Loan Flexibilities through the USDA. FSA is relaxing the loan making process and adding flexibilities for servicing direct and guaranteed loans to Read More...
The SBRA and Small Business Bankruptcy
There are key provisions in the Coronavirus Aid, Relief, and Economic Security (CARES) Act that provide additional relief to those businesses and consumers who may be seeking to file bankruptcy. The CARES Act, which became public law on March 27, 2020, was passed to deliver emergency assistance to businesses, families, and individuals affected by the COVID-19 pandemic. Section 1113 of the CARES Act identifies the following changes in bankruptcy law: In February 2020, the Small Business Reorganization Act (SBRA) enacted a subchapter under Chapter 11 allowing businesses with debts under a certain amount to more quickly, and less expensively, reorganize. Under the SBRA, to have the ability to file a case under subchapter 5, a Read More...
990 Series Returns Due July 15th
At Christianson, we want to keep all of our clients in-the-know as it relates to IRS updates. Today we wanted to communicate with our tax-exempt clients about their filing date. With the May 15th deadline approaching for non-profit organizations, we found that the IRS did extend the 990 Series returns to be due July 15th (this includes forms 990, 990 EZ, 990-PF and 990-N postcard). Also, the MN Attorney General’s office anticipates slowdowns on their end due to COVID-19, so they have granted automatic extensions for the MN Annual Report filings which will change the deadline to November 15th. These extensions are automatic and apply to all taxpayers which means there's nothing you have to do to extend. If you have questions Read More...
Calculating Maximum Loan Amounts – FINALLY Including Farmers!
Finally! We’ve been asking for guidance on PPP loan amounts for Farmers, and 29 days later, we were provided with an FAQ that provides information on how to calculate maximum loan amounts, by business type, including Schedule F’s. Treasury confirms that PPP applications submitted but not yet entered into E-tran will not have to be recalculated using the new guidance. PPP submissions re-opened on April 27, 2020. Self Employed Farmers should use IRS Form 1040 Schedule F in lieu of Schedule C, and Schedule F line 34 net farm profit should be used to determine loan amount in place of Schedule C line 31 net profit. The calculation is otherwise the same as for Schedule C filers, and is capped at $100,000. The 2019 IRS Form 1040 Schedule 1 Read More...
EIDL for Agricultural Enterprises TODAY!
Notice from the SBA: In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories were able to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue. This loan advance will not have to be repaid. SBA will begin accepting new Economic Injury Disaster Loan (EIDL) and EIDL Advance applications on a limited basis only to provide relief to U.S. agricultural businesses. As of TODAY, only agricultural business applications will be accepted due to limitations in funding availability and the unprecedented submission of applications already Read More...
Small Business Relief Fund
The Entrepreneur Fund, Northland Foundation, and Northspan have partnered in developing the Small Business Relief Fund to support businesses in our region hard hit by the coronavirus pandemic. Funding will be used to provide financial assistance to business owners who are facing significant challenges. Small Business Relief Fund Eligibility Businesses located in the Entrepreneur Fund service area: Aitkin, Benton, Carlton, Cass, Cook, Crow Wing, Itasca, Kanabec, Koochiching, Lake, Mille Lacs, Morrison, Pine, St. Louis, Stearns and Todd Counties in Minnesota and Douglas County in Wisconsin. Be current on financial obligations as of March 1st, 2020. Affirm they intend to remain open or to reopen. Demonstrate need for financial Read More...
Coronavirus Funding – Senate Passes $484 Billion Bill
On Tuesday, April 21st, via voice-vote, Senate passed a $484 billion interim coronavirus funding bill which will replenish the emergency loan program for small businesses called the Paycheck Protection Program (PPP). This bill will also provide billions of dollars in funding for the Economic Injury Disaster Loan program (EIDL), hospitals, and will allow for expanded coronavirus testing. The $484 billion will be allocated as follows: $322 billion — is for replenishing the PPP, which dried up very soon after the application window opened. Roughly $60 billion of that total will be allocated to small lenders and community banks. $60 billion for the Economic Injury Disaster Loan program, which reaches communities and small Read More...
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